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Changing habits

Changing habits

According to a recent survey, many consumers in the UAE are dumping their favorite grocery brands to save money.

January 10, 2010 4:38 by

However, despite sales growth taking a dip, the money is still coming in; the Nielson report found that revenues from fast-moving consumer goods in the UAE increased 11 percent in the first eight months of 2009 – from AED8 billion during the same period in 2008 to AED8.92 billion. The majority of that revenue – 70 percent – came from food products.

“People will not compromise on the consumption of these categories,” Sohail Ali, Nielsen’s UAE research manager for retail measurement services told The National. “Did you reduce your milk consumption because of the recession? No. Same is the case for laundry detergents, shampoos, the categories which are day to day.”

According to Datamonitor’s latest report, 26 percent of consumers said that they completely stopped buying jewelry and watches and 28 percent said they have cut back in these areas. Meanwhile, only 1 percent said that they were cutting down on fresh fruits and vegetables.

And, typical of the UAE consumer attitude, personal care brands have not suffered too badly either. “People are very conscious about their presentation, especially because of job security,” says Datamonitor’s Adams. Demand for facial creams has held up very well, he says.

And in this sector, people are very loyal. UAE consumers attach so much importance to the way they look that 47 percent of them said they will use the same brands rather than try new ones. However, they are slightly more cost conscious; 24 percent said that they are using products more sparingly to make them last longer.

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