Aràbia Saudita flag Aràbia Saudita: Compra i venda

Publicitat i Màrqueting a l'Aràbia Saudita

Marketing opportunities

Consumer Profile
The Saudi population represents 0.45% of the world's population with 34.9 million inhabitants in 2020. Some 42.2% are women according to the latest estimates of the World Bank. The population increases by 1.6% per year, bringing the country's density from 9.6 inhabitants / km2 in 2000 to 16 inhabitants / km2 in 2020. According to the World Bank 32.3% of the population residing in Saudi Arabia was born outside the country. The median age is 31.8 years in 2020 while it was 21.3 years in 2000. This ageing of the population can be seen at all age group levels. The  0/14 age group represented 24.86% of the population in 2019 compared to 41.7% in 1995, the 15/64 age group 71.7% in 2019 against 55.3% in 1995 and those aged 65 and over 3.4% against 2.9% over the same period. While this ageing the Saudi government even estimates that the over 60s could represent 25% of the population by 2050.
The number of households is 5.46 millions of which 35.9% are foreign and 64.1% Saudi. According to the country's General Statistics Authority, households have an average of 5.9 people and 52% of them are in Mecca or Riyadh. The majority of the population is urban with 84% of Saudis living in the city in 2020 and 46.17% of whom live in settlements with more than one million residents. There are four of these,  Riyadh (capital and the most populous city in the country with more than 4 million souls), Jeddah, Mecca and Medina. According to the World Bank, 95.3% of the population aged 15 and over was literate in 2017 (latest data avilable, UNESCO). Thus, 92.7% of women and 97.1% of Saudi men know how to read and write. The enrolment rate has increased significantly in the last ten years. According to UNESCO, 100.7% of the population attended primary education in 2019, compared to 95.7% in 2005, according to the World Bank. Some 111.8% of the population had secondary education in 2019 compared to 87.4% in 2005 and 71% of the population attended tertiary education in 2019 whereas only 29.5% had this chance in 2005. While unemployment affects 5.8% of the total population in 2020, it concerns 28.8% of young people aged 15 to 24, and 22.5% of women looking for work (only 2.7% of men). The hiring sectors are services (73% of total employment), industry (25%) and agriculture (2.3%).
Purchasing Power
In Saudi Arabia, GDP per capita PPP was $ 48,908 in 2019 compared with $ 39,882 in 2000, according to the World Bank. A five-year survey data issued by the General Authority for Statistics (GASTAT) showed that the average monthly income for Saudi families amounted to SAR 14,820 in 2018, up 8.9% from 2013’s income of SAR 11,980. The average monthly income for individuals (Saudis and residents) reached SAR 2,485 in 2018, compared to SAR 2,062 in 2013. One of the main problem of Saudi Arabia is the low household savings ratio, which stood at 1.6 percent of annual disposable income for Saudi nationals in 2018, which is significantly below the 10 percent global standard recognized as the minimum level to ensure long-term financial independence.
The kingdom has a two-tier economy made up of about 16 million Saudis, with most of the rest foreign workers. They have lower income and work mainly in the construction and maintenance sector. The poverty rate among Saudis continues to rise as youth unemployment skyrockets.
Another notable inequality is women's access to education, work and outdoor activities. While Prince Mohammed bin Salman has taken a more progressive approach in granting driving licenses the kingdom remains one of the world's most lagging countries in terms of gender equality. In particular, gender segregation and women's wards prevent women from working, making Saudi Arabia one of the lowest countries in the world for women to access jobs. According to the World Bank, the proportion of women that is economically active is 23.5% in 2020, far below the 81% male labor force participation rate.
Consumer Behaviour
According to the latest survey of McKinsey & Company, Saudi consumer optimism has remained steady throughout the Covid-19 crisis, even if more than half of consumers have seen a decline in income savings. Most Saudi shoppers go to shopping centres for food, clothing and electronics. According to a survey conducted by McKinsey & Company in 2018, they can be divided into five broad categories based on their behaviours. The savvy consumers, brand savers, multi-channel buyers, discounted converts and selective spenders. More generally, Saudis prefer quality over quantity (66% of consumers value quality over price) and are attracted by international brands, especially luxury brands. However, in recent years there has been a change in the behaviour of consumers in the Arab world in general, and Saudi Arabia in particular. They pay more attention to prices and are therefore less loyal to brands. Some 52% of Saudi Arabian consumers are becoming more mindful of how they spend their money. Consumers tend to change to less expensive products, research brand and make shopping lists before buying. In the last months, they show increased shopping intent for essential categories and expect to shop more online. This trend is accompanied by a decrease in consumer confidence, decreasing to 104 index points in July 2020, compared with 121 index points in January 2020 according to Trading Economics.

The e-commerce market in the MENA region is particularly promising and represents the emerging trend in Saudi Arabia. Its growth is even one of the largest in the world according to an Ipsos survey conducted in 2018. The total value of the e-commerce market for consumer goods in the country was estimated at $ 6.31 billion in 2020, a 28% increase over the previous year. For example, 64% of Saudis now report buying a product or service online every month. A behaviour strongly focused on their mobile phones with 51% of internet users making their purchases smartphones and barely 24% on a computer. This is mainly due to the predominance of a young and connected population (86.8% of households have access to the internet) that seeks to save time and money, but also by the arrival in Saudi Arabia of new secure online payment methods. E-consumers are mainly men, aged from 25 to 44 years. The market's largest segment is Fashion with a projected market volume of US$2,058m in 2020, then there are electronics & media and food &personal care. According to the survey of McKinsey & Company, more people expect to make a portion of their purchases online post-Covid-19 than before. It is common for these internet users to discover new brands and new places to shop thanks to online activity and online ads. The researchers highlighted the positive impact of social media on the development of companies located in the country, particularly in terms of communication with customers and business partners.
Consumers Associations
Consumer Protection Association of Saudi Arabia
Main Advertising Agencies
Porter Novelli
M&C Saatchi
ASDA’A Burson-Marsteller

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Actualitzacions: May 2022

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