Unexpected findings for marketers to consider this Ramadan

It is no surprise that online sales transactions worldwide are on the rise, with countries implementing lockdowns and citizens observing social distancing to curb the spread of COVID-19. With Ramadan coming up from 23 April to 23 May, eCommerce purchases are expected to rise further as Muslims turn to online platforms to prepare for the festivities.

To better engage consumers during the festive period, Criteo said brands should explore interactive ad formats to target key shoppers as consumers spend more time at home and are looking to be entertained.

While it is still feasible to create campaigns, work should revolve around products which are most relevant to consumers. Campaign calls-to-action should focus on inventory, last-mile delivery and experience, Criteo said. With social distancing and travel restrictions changing daily routines, here are ways marketers can adjust their marketing strategies and tweak last year's festive trends to win consumers' hearts.

3 am shopping

Shopping happens more frequently when the sun has set. According to Criteo's Ramadan data, online retail activity in Malaysia and Indonesia surged at 3am daily during last year's Ramadan. This indicated that shoppers begin to browse for their purchases when they wake up to prepare for the day. At 4am, retail sales are 3.5 times higher on Ramadan compared to an average day. On the other hand, there is a sharp drop in sales at 6pm when Muslim shoppers prepare for their first meal after a day of fasting.

Although desktop sales continues to account for over 80% of all retail sales, Criteo said making purchases from mobile offers consumers the convenience to shop at the palm of their hands. Ramadan also sees the increase in mobile usage, as consumers use religious apps for prayers, grocery and food delivery services, entertainment and communications apps.

Last year, the weekly mobile share in sales surged to 39% during Eid al-Fitr. This gradually led to an increase in in-app sales, which grew by up to 83% in 2019. According to Criteo, this shows that consumers may be moved to buy more within apps when they offer an easy, convenient shopping experience. Pauline Lemaire, Criteo's director of account strategy for large customers, SEA, Hong Kong and Taiwan, said in addition to ensuring enough inventories are available throughout this season, brands and e-tailers should also plan around leveraging this golden hour for transactions.

Beyond planning the midnight deals and flash sales, it is worth considering extending this approach for the 3am to 4am window where sales are projected to surge even higher.

Furniture a high priority

Online sales saw the highest uplift during the week of 23 March this year at 82%, due to the impact of COVID-19 and Criteo expects this number to rise with the upcoming Ramadan celebrations. However, shoppers will be prioritising items they need most during the social distancing economy and not just for the festive season.

Previously, top product categories for Ramadan would usually be electronics, home and living, toys and games, and health and beauty.  However as a result of the pandemic, trends this year might deviate slightly.

Criteo's data from multiple markets on overall eCommerce trends from 30 January to 5 April showed that furniture sales saw a global uplift throughout the month of March.

This comes as consumers were looking to set up a more conducive environment at home with increased remote working measures. Criteo predicts this trend to continue during Ramadan as majority of consumers will still have to remain indoors.

Comfortable clothes for home workout and semi perishable food

Besides furniture, consumers are also reaching for comfortable clothing as they spend more time at home. This includes buying more apparel appropriate for home workouts. 

Grocery items such as seasoning and spice as well as grains have seen an increase in online sales from 16 February to 15 March. Meanwhile, consumers are also opting for durable items to tide them through the period they are forced to stay home. As a result, semi-perishable food ingredients have also witnessed an increase. Shoppers are also spending more on quality-of-life oriented goods for comfort and entertainment to adapt to mainly staying indoors. 

The consumer electronics segment is seeing a significant growth in online sales globally and Criteo expects this trend to continue through Ramadan, since the usual practice of in-person prayer and social gatherings will be shifted to digital meetings. This will require the need for devices to help celebrants carry on traditions.

Lemaire said brands and retailers need to think about the type of products which can complement an indoor-heavy routine or build an experience in a social distancing economy as more people spend their time at home.

"It is also critical for brands and retailers to consider how their offerings should be presented at this point in time. For example, ads showing products that are suited indoors should be favoured over those depicting outdoor activities or crowded places,” she added.

In 2018 and 2019, sales uplift peaked during the third week of Ramadan in Southeast Asia. Malaysia and Indonesia in particular saw greater traction with a 106% increase in 2019, compared to a 90% increase in 2018. Shoppers were also more active the week before Ramadan and the first week of Ramadan in 2019 compared to 2018, indicating a last-minute buying right before the start of the festivities.

Given this year’s projected spike in online transactions due to global lockdowns, eCommerce players should prepare for unprecedented sales surges. “With the increased reliance on eCommerce during this time, brands and retailers must ensure that their logistic networks and fulfilment capabilities are robust enough and inventories are well-stocked to meet the growth in demand and volume of transactions,” added Lemaire.

These trends were identified through the analysis of over 449 million retail shopping transactions, and over 47.7 million travel bookings across desktop, smartphones, and tablets from 106 major advertisers in Malaysia and Indonesia. Criteo also analysed online sales and online bookings in Q1 2019 and Q1 2020.

Stay productive and join us for our newly launched webinar series covering a wide range of topics. 

Related articles:
4 tips for brands in Malaysia during this out of the norm Ramadan
Redoxon hijacks Bimbo's hit song in latest Ramadan campaign
Grab MY digitises Ramadan bazaars to support micro-entrepreneurs
How Malaysian brand and agencies are evolving their Ramadan executions in light of COVID-19
How brands can ace Ramadan holiday buying in Indonesia
5 app categories you should consider spending on during Ramadan
7 Ramadan trends for brands in Malaysia and Indonesia to take note of