Traditional Trade Faces Challenges as Online Shopping Surges

Traditional Trade Faces Challenges as Online Shopping Surges

Alright Readers, let's break down what we've observed in the FMCG and e-commerce sectors in Saudi Arabia and the UAE during the last quarter of 2023.So, what we've noticed is that the FMCG consumption in both KSA and the UAE had a slow recovery, clocking in at less than 0.5 percent. This sluggish growth can be pinned on a couple of factors: firstly, consumers are becoming more price-sensitive, meaning they're paying closer attention to what they're spending on goods. Secondly, there's been a shift in what consumers prefer to buy.Interestingly, while traditional retail channels saw a bit of an increase in the UAE, overall FMCG consumption dropped. In KSA, there was a decline in consumption alongside a slight downturn in growth.One big influencer in consumption trends has been price changes, especially noticeable in categories like Baby Care in KSA and Personal Care in the UAE. We saw prices increase in both countries, and this influenced what people were buying.Now, when it comes to e-commerce, it's been a different story. Despite prices going up, people have been spending more online. The convenience, variety, and often competitive pricing of online shopping platforms seem to be winning over consumers.Andrey Dvoychenkov from NielsenIQ APP