Impact of COVID-19 on Consumer Behavior in the Middle East
The COVID-19 pandemic has affected the pattern of consumer behavior, especially in the gulf. Unlike in ordinary times, when people shopped for a wide variety of goods, people are now choosing necessities. Similarly, more businesses are offering online shopping platforms and delivery services in order to curb the spread of the virus. Internal and external factors have played a crucial role in determining the fate of consumer habits.
The spread of COVID-19 has affected the delivery of goods to consumers, according to Nandakumar, who is the Chief Communications Officer in Lulu Group, which is an external factor. According to him, customers can place orders from home easily. However, the company bears the cost of delivering to them. Consequently, this affects the profits of the company. On the other hand, restaurants have imposed extra charges for home delivery. For instance, more people are making home delivery orders from Eat App. As a result, the digital restaurant transfers the cost to the consumer in order to maintain its profitability. [1]
Residents of the Gulf Region are now purchasing food produced within, instead of importing, which is an internal determinant. Data extracted from the Gulf Cooperation Council shows that since the outbreak of COVID-19, the residents have more confidence in goods produced within the region, instead of the West. According to Marcom Avenue director, Divanshi Gupta, more people are giving preference to foodstuff and hygiene product[2]. According to Gupta, people are in the learning stage of the COVID-19 pandemic, hence the change in the consumption pattern.[3]
In conclusion, the outbreak of COVID-19 has affected both the internal and external factors of consumer behavior. The need to maintain profits and maintain social distancing has made companies to offer home delivery services. On the other hand, more people prefer locally manufactured goods and focus on crucial items such as foodstuff and hygienic products.
Bibliography
Nair, Manoj. “COVID-19 Fallout: UAE’s Online Business Gets Stretched to Limits.” Gulf News: Latest UAE News, Dubai News, Business, Travel News, Dubai Gold Rate, Prayer Time, Cinema. Accessed April 11, 2020. https://gulfnews.com/business/retail/covid-19-fallout-uaes-online-business-gets-stretched-to-limits-1.70784960.
Shafiei, Mehrnoush. “How Coronavirus Is Changing the FMCG Landscape in the Middle East.” Market Research Blog. Last modified, March 30, 2020. https://blog.euromonitor.com/how-coronavirus-is-changing-the-fmcg-landscape-in-the-middle-east/.
Verma, Nath, Shreshtha, Sanstuti H. “COVID-19 to Alter Consumer Behaviour & Marketing Response Permanently: WPP Report – Exchange4media.” Indian Advertising Media & Marketing News – Exchange4media. Last modified April 6, 2020. https://www.exchange4media.com/marketing-news/covid-19-to-alter-consumer-behaviour-marketing-response-permanently-wpp-report-103790.html
[1] Verma, Nath, Shreshtha, Sanstuti H. “COVID-19 to Alter Consumer Behaviour & Marketing Response Permanently: WPP Report – Exchange4media.” Indian Advertising Media & Marketing News – Exchange4media. Last modified April 6, 2020. https://www.exchange4media.com/marketing-news/covid-19-to-alter-consumer-behaviour-marketing-response-permanently-wpp-report-103790.html
[2] Shafiei, Mehrnoush. “How Coronavirus Is Changing the FMCG Landscape in the Middle East.” Market Research Blog. Last modified, March 30, 2020. https://blog.euromonitor.com/how-coronavirus-is-changing-the-fmcg-landscape-in-the-middle-east/
[3] Nair, Manoj. “COVID-19 Fallout: UAE’s Online Business Gets Stretched to Limits.” Gulf News: Latest UAE News, Dubai News, Business, Travel News, Dubai Gold Rate, Prayer Time, Cinema. Accessed April 11, 2020. https://gulfnews.com/business/retail/covid-19-fallout-uaes-online-business-gets-stretched-to-limits-1.70784960.