Saudi consumers more inclined to purchase local food products, says survey

Updated 03 January 2018
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Saudi consumers more inclined to purchase local food products, says survey

Consumers in Saudi Arabia prefer locally manufactured food products to imported items, according to results of an online survey.
The survey conducted by Nielsen showed 69 percent people preferred local brands of dairy products, which is higher than the global average of 54 percent.
Consumers are also more inclined to opt for a locally manufactured product over a global brand in categories such as mineral and bottled water (33 percent) and biscuits, chips and snacks (33 percent).
The Saudi consumers also displayed a much stronger preference for local brands of tea and coffee (32 percent) compared to the global average.
For perishable goods like fresh fruit, vegetables, confectionery items, meat and seafood, consumers in Saudi Arabia like to rely on their neighborhood stores rather than supermarkets or hypermarkets.
However, when it comes to baby products, personal care products and carbonated beverages, Saudi consumers prefer global brands. For vitamins or dietary supplements and pet food, only 7 percent and 8 percent respectively said they preferred local brands.
Other categories where global brands are a clear favorite are in the non-food items, where consumers’ preference for local brands is below one in five for baby wipes, diapers (14 percent) and personal care and beauty products — haircare (18 percent), oral care (16 percent), skincare (13 percent), feminine care (13 percent) and body care products (13 percent).
The annual Nielsen Global Brand-Origin Report highlights consumers’ preference for and sentiment toward products manufactured by local manufacturers versus large global/multinational brands across 34 categories.
“While we are seeing that consumers’ preference is still relatively balanced between local and global brands in Saudi Arabia, when it comes to food items, there is a higher inclination toward local brands. This could be due to the increased focus on innovations by the local players to offer better value for money and cater to the local palates,” said Arslan Ashraf, managing director, Nielsen Arabian Peninsula and Pakistan.
“As far as non-food items are concerned, we can see that brand equity plays a role in driving consumers’ preference for the global brands versus local.”
Consumer preference around the world
Preference for global brands was strongest in baby wipes, diapers and baby food/formula categories, where just 7 percent and 10 percent of consumers, respectively, said they prefer to buy brands from local manufacturers. Other categories where consumers showed a low preference for local brands include vitamins, supplements (12 percent prefer local), pet food (12 percent), feminine care products (13 percent), energy drinks (14 percent), and canned/tinned food products (15 percent). Conversely, categories where consumers were more inclined to opt for a locally manufactured product over a global brand included dairy products (54 percent), biscuits, chips, snacks and cookies (32 percent), ice cream (31 percent) and mineral/ bottled water (30 percent).
“In today’s world of hyper-connectivity and globalization, consumers have a wider array of product choices than ever before,” observes Regan Leggett, head of Foresight and Thought Leadership, Growth Markets, Nielsen. “Importantly, consumers also have greater access to global brands than they have in the past, thanks to factors such as expanding distribution, e-commerce offerings, and modern trade retail channels. As a result, we’re seeing a swing in preference toward the big multinationals.
“Other factors at play include consumer perception around quality, particularly in high involvement categories such as baby care.”
At a regional level, market nuances were evident, with consumer preference for global versus local brands varying widely within a number of categories. In the dairy category, consumer preference for local brands was much more pronounced in Africa and the Middle East (73 percent) and Europe (66 percent) compared to the global average (54 percent). In the biscuits/chips/snacks/cookies category, consumer preference for local brands was prevalent in Southeast Asia (50 percent), Africa and the Middle East (41 percent) and Latin America (41 percent) compared to 32 percent globally. In Europe, consumers were much more likely to opt for local alcohol brands compared to the global average (22 percent versus 16 percent), while Southeast Asian consumers showed a stronger affinity for local instant noodle brands compared to the global average (39 percent versus 21percent).
“The variation across regions illustrates the relative strength of local manufacturers within specific categories, particularly where they are appealing to local consumers’ tastes,” emphasized Leggett.
“In Southeast Asia, for example, where noodles are a staple in consumers’ diets, local manufacturers have been able to maintain a stronghold on the category. Similarly, in European markets locally sourced dairy products are perceived to be of a higher quality than imported products.”
Leggett concluded: “In an increasingly global world, the battle of brands comes down to understand consumers’ evolving needs, behaviors, lifestyles and tastes. Any brand, be it local or global, that is able to tap into these consumer preferences will be best-placed to win the hearts and minds of consumers in the future.”


Expo spotlights luxury watches

Updated 17 April 2018
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Expo spotlights luxury watches

Salon des Grandes Complications was officially inaugurated by Prince Faisal bin Nawaf at the Jeddah Hilton Hotel last week. Taking place for the first time in Jeddah from April 9-12, the four-day fine watchmaking exhibition offered a unique and exclusive social platform for horology enthusiasts in Jeddah to gather.

Revered mechanical masterpieces were displayed, encompassing the newest innovations, historial savoir-faire and inimitable craftsmanship. Visitors were invited to delve into the world of haute horology and get up close and personal with timepieces that are among the best in the world, interacting with watchmakers and designers themselves. 

The event included celebrated traditional maisons and niche independent companies such as Armand Nicolet, Armin Strom, Blancpain, Breguet, Fabergé, Girard-Perregaux, Greubel Forsey, Harry Winston, Hysek, Jaeger-LeCoultre, Montblanc, Panerai, Quinting and Vacheron Constantin, and with the support of retailers Alfardan Jewellery, Abdullah Said Binzagr Jewellery and Watches, Al-Hussaini and Platinum Sands.

On wrapping up in Jeddah, the Salon des Grandes Complications will move to Riyadh’s Al-Faisaliah Hotel from April 16-19.

Participating brands have crafted some of the most complicated and highly valued timepieces ever and have between them an array of international accolades.

Salon des Grandes Complications was first launched in the UAE in 2014 and after much success, has taken place every year since — in 2017 also branching out to Saudi Arabia. 

In January, Saudi Arabia was named the 12th largest export market for Swiss watches by the Federation of the Swiss Watch Industry, clearly showing its significance within the industry not only in the Middle East, but on a global level. In 2017, the Kingdom was the second biggest market in the region for Swiss watch exports, with a total value of CHF325.1 million ($349.4 million).

Salon des Grandes Complications is held with the support of the Swiss Embassy in Saudi Arabia and Visa International.