Food, car, home appliance and clothing companies are currently involved in fierce competition for part of the SR 10 billion consumers are expected to spend in Ramadan and the holidays this year.
Abdullah Al-Shidadi, an economist, told a local newspaper that a “consuming frenzy” is currently underway that could see food stores score big this year. He said there is always a significant increase in spending two months before Ramadan every year. There is also a spike in the volume of consumer loans at this time every year.
Saeed Al-Bassami, a member of the transport committee at the Jeddah Chamber of Commerce and Industry, said car companies try to attract buyers by offering more post-sale services and more payment facilities despite the other financial pressures on consumers.
“So consumers must be completely aware of the limits of their finances and to avoid debts especially with the holy month coinciding with summer holidays, Eid and the back-to-school period.”
Economist Abdullah Al-Maglooth said huge discounts offered by home appliance firms have resulted in a 50 percent rise in sales over the last few months. He warned consumers to be wary of buying counterfeit appliances that are of low quality but sold as originals.
“I think 70 percent of the goods in the market are of low quality or counterfeit.”
Abdullah Al-Salmi, a sales manager, warned that buying clothes for Eid in the last days of Ramadan would lead to an increase in prices by at least 20 percent, and urged consumers “not to wait until the last moment.”
Firms fight for share of lucrative Ramadan and holiday market
