UAE Residents Nervous About Job Security, YouGovSiraj New Monthly Research Tool Reveals
UAE Consumers are switching to more economical brands to beat the credit crunch
The majority of UAE residents are bracing themselves for two years of downturn before the situation improves
These are findings from YouGovSiraj’s first ‘Reality Check – UAE’, a newly launched monthly research report, designed to help companies prepare for survival in a downturn. The research tracks how UAE consumers are reacting to the global credit crunch and gives industry specific recommendations. 725 UAE residents responded to the survey during 4th – 14th December 2008.
According to these findings UAE consumers believe the global economic downturn is firmly affecting life here. 50% say they are nervous about the security of their jobs. One-third of residents have close friends or family who have lost their jobs in the last 3 months. This concern is especially accentuated amongst those working in the Real Estate/Construction and Banking/Finance sectors, where most of the job losses have taken place so far.
The study, which can be purchased monthly or quarterly in UAE and Saudi, gives relevant insight about how customer behaviour is shifting. It has been designed to help brands stay relevant. For instance the first wave of this tracker has highlighted the fact UAE consumers are less ready to take on debt. A large proportion of respondents say they are staying away from ‘easy way out’ credit solutions because they are concerned about future debt. Instead many are opting to ‘tighten their belts’ by spending more cautiously, eating out less often, delaying large purchases and even switching brands to make more economic purchases.
“Without this critical type of research businesses may lose their entire customer base. The type of knowledge we are able to pick up gives us real answers in how to adapt to customer needs. There is a great deal of speculation about how strongly the downturn is being felt. This gives us much needed facts, such as what it will take to retain customer loyalty and when people believe improvements will begin”, says Nassim Ghrayeb, CEO of YouGovSiraj.
UAE residents do believe things will improve but are bracing themselves for the long-haul. When asked how the economic situation will change in the future, a majority, 67% of respondents believe it will take two years or more for improvements to be felt. 52% feel the improvements will start in one to two years.
The research indicates how consumer trends are shifting in this economic environment. A large proportion of respondents say they are avoiding visits to shopping malls in order to stop spending unnecessarily. Another trend which has been revealed is that many feel there is a lack transparency surrounding the UAE economy. They would rather seek what they perceive to be safer investment options; including gold and keeping cash at home.
The way people spend holiday time has changed too, with over half of respondents saying, in order to keep costs down, are considering spending their next holiday closer to their country of residence.
“Are hotels and banks geared towards taking advantage of these new patterns? These findings are hugely important because while residents are spending more cautiously, they are still spending. This presents a big opportunity for all businesses. Today we are definitely more price sensitive but there is also a change in attitude where consumers are re-assessing their values. Research like this helps marketers tap into the new trends, where the possibilities are enormous”, continues Nassim Ghrayeb.
A considerable proportion of respondents have become more susceptible to price promotions and special offers and a staggering 80% say this is a time when innovative solutions that help save money have become much more important.
The survey suggests that apart from a belt tightening exercise, the current economic crisis is also somewhat of a ‘wake up’ call for many with 74% of those interviewed saying that the tough economic conditions should have a positive impact on people by making them appreciate the smaller things in life.
