Ramadan E-Shopping to Reach New Highs
A study conducted by Flowwow, in collaboration with Admitad, has unveiled an uptick in online shopping activity across the MENA region during the holy month of Ramadan. The study highlights how Ramadan traditions are leading individuals to increase their online purchases, particularly in the realm of gifting and essential commodities.
According to the findings, the UAE leads the charge in online shopping during Ramadan this year, boasting an average order value of US$102. Following closely are Kuwait and Qatar with AOVs of US$99 and US$79, respectively.
Flowwow's data showcases a surge in sales, particularly in the floristry sector, where original bouquet sales have skyrocketed by 220 percent from 2023 to 2024. Furthermore, the turnover of confectionary products has witnessed an increase, with the first three months of 2024 accounting for half of the total turnover for the previous year. Notable spikes in custom-designed cakes, personalised bento cakes, and chocolate-covered strawberries have also been observed.
Admitad's partner network analysis indicates a 4 percent increase in online orders and a 6 percent increase in Gross Merchandise Volume during the early stages of Ramadan. Moreover, the average order volume has seen a slight uptick, rising from US$34.5 to US$35.3.
Some categories have experienced significant surges in popularity compared to non-Ramadan periods. These include hotels (56 percent), airplane tickets (40 percent), flowers and souvenirs (37 percent), electronics (30 percent), food delivery (26 percent), and sporting goods (21 percent).
Flowwow’s CEO and co-founder commented on the growing trend towards authenticity, stating the shift towards supporting local businesses and embracing individuality in gift-giving choices. The CEO predicts growth in the UAE's online gifting market, estimating a CAGR of 19-20 percent from 2024 to 2028.
Admitad's CEO, Anna Gidirim, highlighted the fusion of tradition and modern shopping during Ramadan, noting that people are opting for online purchases for convenience while supporting local shops. Gidirim also pointed out a trend towards smaller, more thoughtful purchases that capture the spirit of Ramadan.
Drawing from past spending patterns, Flowwow anticipates growth in online gifting towards the end of Ramadan, with mono bouquet flowers, original flower bouquets, festive-themed cakes, cupcakes, chocolate-covered strawberries, traditional sweets sets, and themed gift hampers all expected to surge in popularity.
As Eid Al-Fitr approaches, marking the end of Ramadan, experts anticipate further spikes in online shopping activity, marking the increasing significance of digital commerce in celebrating traditions and favouring meaningful connections during festive seasons.
