BAG OF JOY. A Continuous Study Conducted by Mindshare MENA

Transcription

1 BAG OF JOY A Continuous Study Conducted by Mindshare MENA

2 Introduction In this study, we analyze consumer behavior during shopping festivals. The report sheds lights on the consumer s journey when festivals take place. It then taps into popularity of festivals that occur at different Arabic cities and the respective visiting incidents. The way people engage with the events that accompany shopping festivals is also highlighted. The findings herein should provide insights on planning future marketing activities.

3 FESTIVALS SYNOPSIS KSA MARKET

4 1998 Jeddah Ghair Festival Jeddah Summer Festival or as it is globally known by name, Jeddah Ghair was initially launched in It is usually organized from July 22nd to 17th August. It includes many entertainment events like fireworks, gold and jewelry festival associated with raffle draws, and concerts by famous Saudi stars, in addition to folk art, traditional dishes, exhibitions as well as literary and scientific evenings. the city of Jeddah - the Red Sea bride. Source: Dubaishoppingfestival.com/Sauditourism.sa/Hoteliermiddleeast.com/Saudigazette.com

5 2004 Riyadh Shopping and Entertainment Festival Riyadh Shopping and Entertainment Festival is organized by the Riyadh Chamber of Commerce and Industry and has released its first edition in The festival hosts more than 250 recreation events in various commercial and recreational centers across the city. The event involves, in addition to discounts on goods and products, attractive offers provided by hotels for honeymooners and discounts in leading restaurants for the public. Moreover, the productive families also participate extensively with their products. Source: Dubaishoppingfestival.com/Sauditourism.sa/Hoteliermiddleeast.com/Saudigazette.com

6 2012 Hayya Jeddah Hayya Jeddah Festival is the annual shopping celebration that attracts millions of shoppers to Saudi Arabia s second largest city. It is a month long festival meant to mirror Jeddah s position as a welcoming, accessible, family destination with an incredibly diverse range of 5,000 retail stores from famous malls with unbeatable bargains and promotions. Source: Dubaishoppingfestival.com/Sauditourism.sa/Hoteliermiddleeast.com/Saudigazette.com

7 Report Flow Festival Dynamics Getting informed Decision making to visit Spending behavior Categories shopped Attraction points Wish list Festivals Funnel Awareness Visiting occurrences Future visits Events Dynamics Attendance Drivers Decision making Sourcing information Events of interest Discouraging factors

8 Indulging Critics Mostly married with children Bargaining Fans Three Clusters Identified Generally interested in festivals, but the most critical of the transparency of offers Witness slight change in shopping behavior during festivals More females than males Mostly married with children Most passive about shopping festivals Slightly interested in the events and only enjoy the atmosphere and vibes Their spending and shopping behavior are not affected during festivals Constitutes of slightly more females than males Mostly married with children Highly interested in shopping festivals and the events Utilize festivals to benefit from bargains and good deals Witness slight change in spending behavior during festivals Majority males Posses the highest portion of single individuals vs. other clusters

9 FESTIVAL DYNAMICS KSA MARKET

10 Social media & TV advertising are the main sources of information about festivals Bargaining fans attachment with festivals is further demonstrated by their keenness to keep up to date with the festivals latest news by using multi- channels, on top of which is social media. Lukewarms heavily rely on social media and TV advertising to stay updated though they are mostly attracted to the vibe and atmosphere. Indulging Critics tend to focus their information gathering regarding festivals on social media advertising. Total N = 400 (All respondentxs) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for total sample

11 Over 2/3 decide collectively on which city to visit because of the shopping festival happening in it 43% 31% 28% 28% 32% 28% 20% 17% 19% 11% 9% My spouse and I Myself Other family members Spouse, kids, friends Indulging Critics Lukewarms Bargaining Fans Who is the decision maker to travel to or visit a city because of the shopping festival happening in it? Total N = 324 (Respondents visiting/travelling to festivals in Arabic cities) Indulging Critics = 190 Lukewarms = 88 Bargaining Fans = 46 Figures with no legend are for total sample

12 35% 30% 20% 15 % More than a third take the decision by themselves, and very few leave the decision entirely up to their spouse. Among married couples, males tend to either take the decision by themselves or ask for their friends opinions in case of going with them. Females, on the other hand, consider the decision more of a joint discussion with the spouse and other family members. Indulging Critics appear to mostly consult their spouse when deciding on visiting shopping festivals. This is mainly applicable to females within this cluster. On the contrary, Lukewarms are inclined to take the opinions of other family members (especially single females within this cluster). Married males within Bargaining Fans mostly decide by themselves but also take into account their spouse s opinion.

13 Spending does not generally increase during festivals, yet available offers impact shopping behavior 12% Spending & Shopping Behavior Affected I tend to postpone my big spendings for the shopping festival of the city I live in\plan to visit 42% 46% Only Shopping Behavior Affected I tend to look for some offers but would not say that my spending increases because of shopping festivals No Effect My shopping behavior is not affected by shopping festivals Bargaining Fans are inclined to look out for great offers and deals. This explains why their spending during festivals rises relatively more compared to the other two clusters. Indulging Critics general spending habits appear to be uninterrupted during the shopping period. However, they tend to look for attractive special offers/discounts. Lukewarms do not experience any changes in either shopping behavior nor spending. 10% 10% 20% 63% 22% 37% 27% 68% 43% Indulging Critics Lukewarms Bargaining Fans How would you describe your engagement with shopping festivals - Spending during festivals? Total N = 400 (All respondents) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for totalsample

14 What categories do you shop for more during festivals? Total N = 232(Respondents whose spending/behavior is affected by festivals) Indulging Critics = 146 Lukewarms = 35 Bargaining Fans = 51 Figures with no legend are for total sample 9 out of 10 buy more clothes during festivals 91% Cloth 23% Accessories 54% Perfumeries 19% Jewel 50% Shoes 19% Beauty Care 41% Bags 16% Mobile Phones 37% Watch 11% Other tech products Irrespective of the wide range of categories that go on sale during festival periods, clothes remain the number one category that consumers shop for more at this period as well. Generally, clothes are purchased more often and on a regular basis, so during festivals, individuals seize the opportunity to bag special deals. Also, this category is highly advertised and has attained great exposure on social media platforms which has directly and indirectly increased the respective purchase trials. Lukewarms tend to purchase categories whose shopping increase the least during festivals, such as beauty care products (mainly females) and electronics (mainly males). Indulging Critics purchase perfumeries the least during festivals compared to the other two groups.

15 Interest in festivals stems mainly from promotions & offers P r o m o t i o n s & O f f e r s A t m o s p h e r e & V i b e s E v e n t s S o c i a l i z i n g C e l e b r i t y p r e s e n c e 86% 49% 38% 32 % 30 % 82% 92% 88% 43% 54% 56% 27% 41% 61% 20% 38% 52% 24% 32% 39% Indulging Critics Lukewarms Bargaining Fans What are the things you like most about shopping festivals in Arab cities? Total N = 400 (All respondents) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for totalsample

16 Interest in festivals stems mainly from promotions & offers No matter their involvement and attachment with festivals, cluster segments tend to name certain features they like during the festive period. This is mostly evident among Lukewarms who are the most passive about festivals, yet admire many of its accompanying features & activities such as promotions, the atmosphere and events, i.e merely spectators but no actualinvolvement. Promotions and offers are what Indulging Critics like the most about festivals. Other features seem to attract them much less. As for Bargaining Fans, they appear to like everything that comes along with the festivals.

17 FESTIVAL FUNNEL

18 Dubai Shopping Festival is more popular than local festivals in KSA Dubai Shopping Festival 68% 65% 61% 83% Jeddah Ghair Festival 43% 37% 48% 53% Indulging Critics Lukewarms Bargaining Hala February Riyadh Shopping and Entertainment Festival 21% 17% 22% 23% 15% 12% 13% 33% Other festivals in the region like Dubai Shopping Surprises, Hayya Jeddah, Dammam eastern summer festival..etc, did not get significant attraction What shopping festivals that are organized in Arab countries are you aware of? Total N = 400 (All respondents) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for totalsample

19 Interest in festivals stems mainly from promotions & offers Events such as shopping festivals have enabled consumers to benefit from a rich experience combining between both retail and entertainment. These events seem to capture consumer s attention and shape their shopping behavior. Dubai Shopping Festival (DSF) appears to have the highest percentage of spontaneous mentions in comparison to other similar festivals in KSA and the region. Bargaining Fans are more aware of DSF, Jeddah Ghair and Hala February than the other two groups. Conversely, the latter two festivals are more familiar Riyadh Shopping Festival.

20 Dubai Shopping Festival is the main destination for many KSA residents 24% 11% 8% 31% 10% 9% 14% 10% 9% 21% 12% 3% The jaw dropping deals and promotions along with the wide range of cultural/entertainment activities keeps on attracting many tourists from KSA to DSF. Around a quarter have attended the new edition of DSF. Indulging Critics are more inclined to visit DSF than Bargaining Fans, though the latter are the more knowledgeable about DSF. Indulging Critics are composed of families more than Bargaining Fans, hence, are more likely to go on family trips to attend regional festivals. Indulging Critics Lukewarms Bargaining Fans Lukewarms seem to balance their festival outings and almost equally explore DFS, Jeddah Ghair and Hala February. What are the things you like most about shopping festivals in Arab cities? Total N = 400 (All respondents) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for totalsample

21 Dubai Shopping Festival will continue to be the shopping hub for visitors 72% Indulging Critics Lukewarms Bargaining Fans 58% Expected destinations to festivals in Arabic cities 26% 18% 23% 4% 11% 5% 10% 5% 7% 4% 58% 16% 9% 6% Over half are likely to visit the Dubai Shopping Festival, even if not for the first time. Kuwait s Hala February Festival is expected to enjoy a fair share of visitors as well. UAE and Kuwait, hence, anticipate a larger influx of tourists from KSA compared to other regional festivals. Local events such as Jeddah Ghair appear to lure a much smaller audience. All three clusters are more inclined to visit DSF than any other festival in the Indulging Critics and Lukewarms. future, especially Which Arab cities you might travel to or visit in the future because of the shopping festivals happening in it? Total N = 400 (All respondents) Indulging Critics = 200 Lukewarms = 111 Bargaining Fans = 89 Figures with no legend are for totalsample

22 FESTIVALS EVENTS DYNAMICS

23 No time\busy at work Shopping festivals events don t interest me Marketing for events is weak - lack of information Attendance tickets are usually expensive Shopping festivals events don t interest my spouse\family 9% 7% 5% Base: Respondents not attending festival events (N=264) Lack of time opposesthe other 2/3 from attending festival events 50% 44% 66% Despite the variety and thrill accompanying the cultural & entertainment events organized by shopping festivals, people usually find difficulty in attending such events due to time constrains and busy schedules. This mainly applies to Bargaining Fans of whom the majority is employed. Have attended Shopping events Never attended Shopping events 1/3 attend events organizedby festivals, either to escape boredom or to satisfy family requests 34% These drivers are mostly applicable to Lukewarms Bargaining Fans are more likely to attend festival events to see their favourite celebrity performing more than the other two segments. Escaping from the daily routine Meeting the interests & requests of my spouse\family Influence & recommendations from friends\colleagues Seeing a favorite celebrity participating in the event Personal interests in certain events 20% 16% 13% Base: Respondents attending festival events (N=136) 52% 51% Do you attend events organized by shopping festivals (N=400)? Why (N=136)? Why not (N=264)?

24 Within families, parents have the final say on which festival events t Bargaining Fans are mostly composed of married males who like to take the decision, on which event to attend, by themselves. Others segments (Indulging Critics and Lukewarms), on the other hand, consist of more females and tend to consolidate their decision with their spouse. 79% 78% 69% 31% 17% 17% 5% 4% 0% 0% 0% 0% My spouse and myself Myself Our children My spouse Indulging Critics Lukewarms Bargaining Fans Who usually decides on the festival events that are attended? Total N = 102 (Married respondents attending festival events ) Indulging Critics = 66 Lukewarms = 23 Bargaining Fans = 13

25 Social media & TV ads are the main sources of information for festival events also The portion of those who like festival events and end up attending them is highest among Indulging Critics and much lower among Lukewarms and Bargaining Fans. Event goers appear to approach festival events in a different manner to the way they deal with the overall festival. This is exemplified in how the information about events are being sought for by each cluster, which in turn varies depending on where they get general updates about festivals. Social media Advertising TV Advertising 76% 54% 53% 47% 49% 72% 78% 80% Comments & posts on Social media 46% 28% 52% 53% WOM 29% Online Advertising 26% 19% 28% 74% 25%26%27% Outdoor Advertising 13% 11%12% 19% Where do you look for information about events organized by shopping festivals? Total N = 136 (Respondents attending festival events) Indulging Critics = 85 Lukewarms = 32 Bargaining Fans = 19 Indulging Critics Lukewarms Bargaining Fans

26 Family entertainment programs attract the largest Family entertainment events audience mainly appeal to married couples with children like Lukewarms. Bargaining Fans tend to not skip any event. They are present in almost all. Family entertainment Music concerts Environmental events Cinema events 60% 36% 22% 21% 54% 78% 58% 33% 31% 84% 8% 22% 42% 20% 13% * (small base, use with caution) Theatre shows 17% 12% 9% 53% Indulging Critics Lukewarms Bargaining Fans Whatare the shoppingevents thatusually interestyou? Total N = 136 (Respondents attending festival events) Indulging Critics = 85 Lukewarms = 32 Bargaining Fans = 19

27 Key Takeouts The vast majority rely on Social media & TV advertising to get information about festivals and their accompanying events. The search for information on festivals/events reflects general searching habits. Deciding on which city to travel/visit because of the shopping festivals happening in it is a collective process majority of the times. Sole decision makers mainly constitute of males whereas females lean towards a shared agreement with the spouse or other family members. Consumers are inclined to spend more on clothes. Promotions and offers are the main attractions. Dubai Shopping Festival appears to generate the largest number of visitors compared to other festivals. It promises to possess the same momentum in the future. Events organized by festivals attract around a third. Event goers attend with the main intention of breaking their daily routine. They mostly opt for family entertainment. Those who usually do not attend events are restrained by their busy schedules.

28 Where? How? Who? Research Methodology (KSA, n=400) Riyadh 40% Jeddah 40% Dammam 20% Quantitative Via structured questionna ire CATI Interview length 15 to 20 minutes Residents of KSA Aged from 20 to 60 Males and females