Category Archives: Study

Bahrain Media Report

London and Manama – January 2014

Sacha Orloff Consulting Group in partnership with Tawasul Al Khaleej, have conducted a survey on the role of media as a catalyst for the dissemination of market information and data among businesses in the Kingdom of Bahrain.

Media is a key component of economic growth and the transformation of the economy in Bahrain. The purpose of this survey is to analyse current perceptions of the media industry in Bahrain, and how consumers and business professionals engage with the media.

Key findings include:

90.3 percent of the respondents agree and strongly agree that data is important to the performance of their business in Bahrain.

56.9 percent of Bahraini professionals perceive media in Bahrain as an important source to their business activities in the Kingdom.

However, approximately two thirds of the population surveyed agreed that, Bahrain is not a leader in the media industry.

A full download is available below:

SOC_Bahrain Media Report_Jan14

Author – Alexandra de Kerros Boudkov Orloff – Owner & C.E.O Sacha Orloff Consulting Group

Advertisements

Leave a comment

Filed under Bahrain, Study

Bahrain Media Survey

Please accept this invitation to participate in a very short survey.

Here is the link to the survey: https://www.surveymonkey.com/s/KF58TT2 

This short survey will take less than 3 minutes to complete, and your opinions will make a significant contribution to our research on Media vehicles in the Kingdom of Bahrain. The aim of this poll is to study Media requirements in Bahrain and analyse the consumer needs and desire for more information data.

By Media, we understand magazine, paper, television, radio, digital and social media

PRIVACY AND CONFIDENTIALITY: If you agree to participate, your identity will remain anonymous and your responses will be used only in aggregate.

We truly appreciate your participation.

Sacha Orloff Consulting Group and Tawasul Al Khaleej

Leave a comment

Filed under Bahrain, Media, Mobile, Study

Mobile shopping on the rise – smartphones to stir $689b retail store sales by ’16

© Saudi Gazette

 

JEDDAH – Smartphones currently influence 5.1 percent of annual retail store sales, translating into $159 billion in forecasted sales for 2012, according to new Deloitte research. For the first time in the industry, the in-depth study measures the “mobile influence factor,” or impact of smartphones on in-stores sales.

The research anticipates mobile’s influence, based on consumers’ smartphone use, will grow to represent 19 percent of total store sales by 2016, amounting to $689 billion in mobile-influenced sales. By comparison, direct mobile commerce sales will pass the $30 billion mark by that time, according to industry estimates.

“Mobile devices’ influence on retail store sales has passed the rate at which consumers purchase through their devices today,” said Santino Saguto, partner in charge for the Telecommunications, Media and Technology (TMT) industry, Deloitte Middle East. “Consumers’ store-related mobile activities are contributing to – not taking away from – in-store sales, and the research indicates that smartphone shoppers are 14 percent more likely to convert and make a purchase in the store than non-smartphone users. This means that mobile is an important tool for retailers to incrementally drive traditional in-store sales, strengthening the relationship between retailer and consumer to increase engagement and loyalty.”

In the Middle East, while e-commerce adoption remains low, online sales have increased rapidly in the past two years and are expected to continue to grow fast due to the region’s demographics. According to the fourth Arab Media Outlook Report (AMO), issued by the group and the Dubai Press Club, in most Arab markets in the region, except the UAE, ecommerce adoption remains below 5 percent of the population with transactions mostly focused on ticketing (flights, concerts etc.). However the digital platform has a strong potential for growth given the favorable demographics of the Middle East region (i.e. more than 50 percent of the population is below the age of 25). In addition, due to the strong regional uptake of smartphones and mobile broadband an increased activity in m-commerce and mobile social networking is forecasted.

With close to half of the population using smartphones in countries such as the UAE, there is a strong propensity to download and use mobile apps. According to the AMO report, on average, smartphone users in the region have up to 32 apps on their phone and over 50 percent of the smartphone users regularly download applications on their phones.

“We are finding many payment solution providers, marketplaces, local recommendation sites and commerce platforms sprouting up across the MENA region, to develop a suitable ecosystem around e-commerce and m-commerce,” said Emmanuel Durou, Telecommunications, Media and Technology (TMT) director at Deloitte in the Middle East. “Jointly with smartphone adoption these changes are expected to boost the impact of mobile on the retail sector and improve the in-store shopping experience,” he added.
To better understand the growing impact of mobile devices on the retail sector, Deloitte’s retail & distribution practice and Digital conducted an in-depth survey of US consumers about how they use their smartphones to shop today and their likelihood of using them in future buying decisions.
Nearly half (48 percent) of US smartphone owners surveyed say their phones have influenced their decision to purchase an item in a store, and the study shows that consumers’ smartphone use tends to be highest at or near the point of purchase. Based on the survey, more than 6 out of 10 (61 percent) of smartphone owners who use their devices to shop have done so while shopping at the store, and more than half (52 percent) reach for their phones on the way to the store.

Smartphone-toting consumers appear more likely to make a purchase than those who do not own one or do not use it to assist in-store shopping. When asked about their most recent shopping trip, nearly three quarters (72 percent) of smartphone owners surveyed indicated they made a purchase on that day, compared with 63 percent of respondents who did not use a phone. Smartphone users were also more likely to eventually make a purchase: among those who did not buy anything on their last trip, 59 percent of those who used a smartphone eventually made a purchase, compared to only 22 percent of those who did not use one.

Mobile applications appear to be the inroads to consumer engagement. Nearly four out of 10 (37 percent) smartphone owners surveyed who used a smartphone on their last shopping trip utilized a third-party mobile shopping application, and more than one-third (34 percent) used a retailer’s mobile application.

Smartphone adoption coupled with consumers’ propensity to use their devices for shopping also contributes to the growing mobile influence factor. As consumers buy smartphones, they are quick to tap their devices for shopping assistance, with smartphone use for store-related shopping increasing 40 percent after the first six months of ownership, according to the survey. Once these consumers are on board, they consistently use their phones for 50 to 60 percent of their store shopping trips, depending on the store category.

The mobile influence factor is strongest among younger shoppers, suggesting that as this segment ages, a retailer’s core customers will increasingly be armed with smartphones. In Deloitte’s survey, nearly 7 out of 10 smartphone owners (67 percent) between 14 and 34 years old have used their devices to shop, and 55 percent indicate their smartphones have influenced their decision to make a purchase. – SG

Published in Saudi Gazette: http://bit.ly/NljdUq

Recommended reading: E-Commerce in Saudi Arabia: Driving the evolution, adaption and growth of e-commerce in the retail industry  http://bit.ly/P25O8C

1 Comment

Filed under Consumer, eCommerce, Mobile, Saudi Arabia, Study

E-Commerce in Saudi Arabia: Driving the evolution, adaption and growth of e-commerce in the retail industry

Report by Sacha Orloff Consulting Group

Author: Alexandra de Kerros Boudkov Orloff

Full report download: E_Commerce in Saudi Arabia_Driving_The_Evolution_Adaptation_and_Growth_of_ecommerce_in_the_Retail_Industry_SOCG_2012June

Should Saudi Arabia build on the impetus that has been created through the adoption of e-government, a domino effect would trickle down into the private sector and consumer behaviour, with a wide spread of e-commerce penetration. This would create new economic opportunities and enhance the technological innovation capabilities of businesses providing enhanced competitiveness in domestic and international markets.

The Report “E-Commerce in Saudi Arabia: Driving the evolution, adaption and growth of e-commerce in the retail industry” highlights the steps which need to be taken to support the adoption and diffusion of the e-commerce model in Saudi Arabia. Key findings demonstrate that the current spread of e-commerce has been hampered by specific socio-cultural business traits which inhibit the risk-taking characteristics of enterprises. These traits are characterized by a need to implement proven business models;   reduce the risk of failure and an aversion to adopt a business model which may not be suitable to current consumer habits. Moreover, the sluggish uptake of e-commerce technologies by major competitors continues to prove detrimental to the spread of e-commerce.

Saudi Arabia needs to take the lead in driving its retail and e-retail growth, consequently to enforce its position as a key retail business hub in the region with national and foreign direct investment, and technical expertise to drive growth, innovation and positive business confidence.

Opportunities are emerging for private sector firms in Saudi Arabia to address numerous pressing challenges to the adoption of e-commerce solutions. A clear focus on change management processes, innovation, and bridging the talent-gap must be prioritized to ensure the widespread growth of these new channels.

1.     Introduction
2.     Saudi Retail Sector Overview
3.     ICT adoption and penetration in KSA
4.     Emergence and growth of e-government and e-commerce
5.     Challenges and barriers to e-government
6.     Enablers to e-government
7.     Challenges and barriers to e-commerce
8.     Enablers to e-commerce
9.     Online Customer behaviour and intention in Saudi Arabia
10.   Case study – eXtra iconic retailer but non e-conic success story
11.    Conclusion

©Sacha Orloff Consulting Group – all right reserved – June 2012

Also in Arab News – June 21, 2012 – Despite challenges, KSA ripe for e-commerce in retail industry http://www.arabnews.com/despite-challenges-ksa-ripe-e-commerce-retail-industry

3 Comments

Filed under Consumer, eCommerce, Luxury acquisition, Luxury Middle East, Report, Saudi Arabia, Study

Who is the Chinese Consumer of 2020

Image courtesy of influx_studio

By 2020, Chinese consumers will join the ranks of the world’s choosiest and most sophisticated consumers

By Yuval Atsmon, Max Magni, Lihua Li, Wenkan Liao – Published by McKinsey Quarterly

Most large consumer-facing companies realize that they will need China to power their growth in the next decade. But to keep pace, these companies will also need to understand the economic, societal, and demographic changes shaping the profiles of consumers and the way they spend. This is no easy task not only because of the fast pace of growth and subsequent changes in the Chinese way of life but also because of the vast economic and demographic differences across the country.

These differences are set to become more marked, with significant implications for companies that fail to grasp them. Since 2005, McKinsey has conducted annual consumer surveys in China, interviewing a total of more than 60,000 people in upward of 60 cities.1 Our surveys have tracked the growth of incomes, shifting patterns of expenditure, rising expectations—sometimes in line with those of the respondents’ Western counterparts and sometimes not—and the development of many different consumer segments. Those surveys now provide insights to help us focus on the future. We cannot, of course, predict it with certainty, and external shocks might confound any forecast. But our understanding of consumer trends to date, coupled with an analysis of the economic and demographic factors that will further shape them in the next decade, serve as a useful lens for contemplating the profile of the Chinese consumer in 2020.

Changing demographics

Many of the changes taking place in China are common features of rapid industrialization: rising incomes, urban living, better education, postponed life stages, and greater mobility. Japan saw similar changes in the 1950s and 1960s, as did South Korea and Taiwan in the 1980s.

But some unique factors are also at work, such as the government’s one-child policy and the marked economic imbalances among regions. Our analysis reveals important insights into the likely demographic and socio-demographic profiles of Chinese consumers at the end of this decade.2

Changes in economic profiles have been and will continue to be the most important trend shaping the consumer landscape. The Chinese are certainly getting richer fast: the per-household disposable income3 of urban consumers will double between 2010 and 2020, from about $4,000 to about $8,000.4 That will be close to South Korea’s current standard of living but still a long way from its level in some developed countries, such as the United States (about $35,000) and Japan (about $26,000).

Continue reading

Leave a comment

Filed under Consumer, Report, Study, Uncategorized

Saudi Arabia – Retail Prospects and Outlook for 2012 – Report

By Alexandra de Kerros Boudkov Orloff

Download full report: Saudi Arabian Retail Prospects – Sacha Orloff 2012

Published in MECSC – Middle East Council of Shopping Centres: http://www.mecsc.org/newsletter/nledt_view.php?id=345

Immense opportunities in the fast growing retail market in Saudi Arabia – its constraints and challenges.

The Middle East Retail Sector forecast for 2013 has identified Saudi Arabia and the UAE as the markets with the most potential and dynamic retail sectors in the region. These two markets have sustained their dominance within the retail landscape for more than a decade and will continue to do so in coming years. The presence of a large expatriate population and the majority of region’s retail investment being centred in these countries have helped to maintain the growth momentum.

The GCC retail industry is poised for a healthy growth and known to be one of the fastest growing sectors in the Middle East. It is the second largest sector in the oil-rich GCC region, and is considered to be the most favoured means of endorsing diversification and continual economic development in the area.

In general the Saudi retail sector is spread across malls that have mainly replaced the old markets and souks all over the Kingdom. Malls attract consumers to purchase in a more modern and stylish environment; enabling to build a consumer experience with both a social and entertainment purpose.

1.0        The Kingdom of Saudi Arabia economic landscape.
1.1          Total retail spending in KSA 2011
1.2         Total retail spending in UAE 2011.
1.3         Total retail spending at Dubai Duty Free.
1.4         Global GDP growth.

2.0        Global Trends.
2.1          Key Trends in the MENA retail market.
2.2         Trends in the Saudi real estate and retail market.
2.3         Riyadh, the future capital of the retail sector.

3.0        Key impacts on the retail market in KSA.
3.1          Cultural differentiations:
3.2         Religious tourism.
3.3         Saudi Retail Market Concentration.
3.4         Recruitment and customer service.

4.0        E-Commerce in KSA is the next growing trend.

5.0        Conclusion.

5.1        Input and outcome analysis of KSA retail

Download full report: Saudi Arabian Retail Prospects – Sacha Orloff 2012

5 Comments

Filed under Luxury Middle East, Report, Study, Uncategorized

Retail – Surviving the industry shakeout – Imperatives for MENA distributors

 

By: Gabriel Chahine and Faisal Sheikh

UAE.  The distributors of the Middle East are at a crossroads; after decades of steady growth, incoming competition from third-party logistics companies and moves by multinational corporations (MNCs) are making once-successful business models unravel.

As a result, the distribution business is rapidly becoming less profitable and more risky, necessitating a turnaround in identities and strategies.

To date, distributors have addressed this challenge via operational improvements, such as cost-cutting, and by trying to add new MNCs to their rosters. These manoeuvres are of limited value, however, and will fall short of solving the distributers’ long-term problems.

If they are to continue to enjoy success, they will need to change their identities and business models, via one of two strategic options as identified by Booz & Co experts; they can change their distribution mission, doing things like focusing on specific channels or unbundling services, or they can vertically integrate, adding greater profits that are available upstream in manufacturing, or downstream in retail.

“With profits falling and competitive threats rising, there is an urgent need for distributors to choose a new path and begin making the necessary changes to their strategy and operations,” said Gabriel Chahine, a partner with Booz & Company. “There are approximately 575 distributors operating in the Middle East, making the industry ripe for consolidation. While the incremental improvements that they have shown are useful, they are not sufficient to stay afloat in light of the increasingly crowded competitive landscape and protectionist legislation; distributors must determine whether their business model is at risk in the current environment, and whether it can continue to satisfy shareholders’ expectation in order to decide on the path forward.”

As mentioned above, there are two primary options that Booz & Co recommends to distributors. Option number one is to change and refocus the mission within distribution. By increasing the scope of what they do, distributors should consider six dimensions, which they can pursue either in isolation or in combination, depending on their assessment of their capabilities. These are: Continue reading

Leave a comment

Filed under Luxury Middle East, Study