Biggest bargain-hunting nationality?

New research from YouGov has confirmed what we all ought to have known all along – that a majority of us UAE consumers get a real thrill out of finding a bargain.

The study shows that 67 per cent of consumers overall claim they hunt for bargains – this is particularly the case amongst females (74 per cent), who agree they are always on the lookout for promotions, coupons and discount vouchers – significantly more than males.

Asian expats (72 per cent) are also the biggest bargain hunters of all the nationalities in the UAE.

UAE residents, however, will not forgo quality to find the right price when shopping around for the best deals on their retail purchases.

Despite almost four-fifths (77 per cent) of respondents claiming they compare prices of products before making the choice to purchase, and 70 per cent claiming they are always on the lookout for the best deals and promotions, 70 per cent claim they will always pay more money to find the right quality product.

Interestingly, even celebrity endorsements don’t appear to sway the UAE’s bargain savvy consumers’ with 42 per cent of respondents claiming they would not purchase a product just because it was endorsed by a celebrity, particularly females (47 per cent).

Unsurprisingly, the price point of a product (63 per cent) is the greatest influencer when UAE consumers are first considering which brand to buy from, followed closely by recommendations from friends and family (60 per cent). However the results do show consumers largely stay loyal to brands with 63 per cent claiming once they find a brand they like, they will stick to it.

Mass market brands appear to be striking the right balance with clothing products the most frequently with just over a quarter (26 per cent) of respondents purchasing the latest fashion attire at least once a month.

Sweet-spot for our pockets

The most favourable price point is between $51 and $100 for both clothing (32 per cent) and shoes (18 per cent). This is followed closely by perfume with 22 per cent of respondents spending money on their favourite scent at least once a month, particularly Emiratis who purchase it once a week (15 per cent). Overall most respondents claimed they spend up to $50 on perfume from mass market brands (38 per cent).

As far as luxury brands are concerned, department stores (37 per cent) are winning the bargain contest in the eyes of consumers as the most popular outlet to purchase luxury items from: 22 per cent purchase from them at least once a month and 15 per cent at least once a week. 

On the other hand, independent luxury stores attract just a fifth of respondents from which purchases are made 4-6 times a year (18 per cent), or 2-3 times a year (15 per cent).

Handbags win

Interestingly, luxury brands are also winning with clothing items in the $51 - $100 price range with most (21 per cent) of consumers spending that amount of money on their luxury clothing items, particularly Emiratis and Arab expats.

However, when considering which luxury items consumers are willing to splash out on the most, bags attract the highest investment with 12 per cent spending between $501 and $1,000. More people spend money on shoes at a slightly lower price tag with 17 per cent of respondents spending between $101 and $500 on the latest fashionable footwear. The least money is spent on luxury perfumes with a quarter of respondents spending between $1 and $50, particularly males (28 per cent).

YouGov consumer research director Nehal Hassan Jibouri commented, “This study re-emphasises the critical part value for money plays in the minds of UAE consumers when considering the right product to spend their money on. Finding a bargain is extremely important and it’s clear the majority are willing to splash out when the product quality makes sense, but a discounted quality product is the ideal mix.

“Mass market and luxury brands are demonstrating good appeal when it comes to clothing, but when considering their future strategy for other products, they need to be mindful not to squeeze their margins to the detriment of quality attributes, such as being long lasting or having a feel good factor. Providing a realistic price point or relevant promotional offers will also be key to attract a more bargain savvy consumer with the increasing means to quickly compare prices”.

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