65% Of UAE Consumers Are Focussing On Products And Not Brand Names, New Study Reveals

Is your brand in trouble? As the summer sales season approaches in the UAE, a striking trend of brand indifference among consumers has emerged, according to a recent study by SAP Emarsys and Deloitte. A majority of consumers, 65%, and 61% of Gen Z in the UAE, show little concern for brand names if the products fulfill their requirements. Additionally, 67% have opted for more economical own-label alternatives.

However, it's not all that grim. Despite this trend towards brand apathy, 68% of consumers in the UAE still publicly support their preferred brands, indicating that brand advocacy remains strong among a significant portion of the market.

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This contradiction highlights the nuanced relationship UAE consumers have with brands, balancing indifference with selective loyalty. These insights stem from a comprehensive survey involving over 2,000 consumers and 100 senior marketers from multinational companies, aimed at understanding changing consumer attitudes. This shift suggests a growing focus on value and practicality over brand loyalty.

Marwan Zeineddine, SAP UAE's Managing Director, commented on the evolving consumer landscape, emphasizing the importance of personalization and emotional connection in building brand loyalty. "Today's consumer landscape is shifting faster than ever, and brands must navigate this terrain with agility and insight," he noted. His statement underscores the opportunity for brands to engage consumers meaningfully, despite increasing brand apathy, by leveraging technology to create personalized experiences that resonate on an emotional level.

The Global Consumer Products Engagement Report by SAP Emarsys introduces the concept of the 'Engagement Era,' where establishing a strong data foundation and adopting AI-driven, omnichannel strategies are crucial for brand success. In this era, customer engagement becomes paramount, with 72% of marketers in the UAE acknowledging the growing difficulty in engaging customers meaningfully. This challenge underscores the need for brands to innovate their engagement strategies to maintain relevance and foster loyalty.

Sara Richter, CMO at SAP Emarsys, highlights the global trend of decreasing brand loyalty, stressing the importance of real-time, personalised customer experiences. "Consumers globally aren't just becoming less loyal to brands — they're ignoring them entirely," she remarked, pointing out the necessity for a solid data foundation to tailor experiences that cultivate true loyalty.

Marketers in the UAE face significant obstacles in engaging customers effectively, with internal complexity and data accessibility cited as major barriers. Only a minority of marketers feel confident in their ability to predict consumer behavior and segment audiences effectively. This lack of confidence and the challenges in leveraging data highlight the urgency for brands to refine their engagement strategies and technologies.

Looking forward, UAE marketers recognise the imperative to revamp their engagement approaches, with 65% planning to overhaul their strategies by 2025. Personalization emerges as a key focus, aligning with the preferences of 77% of UAE consumers who value highly personalized content. This emphasis on customization and relevance is crucial in an era where consumer attention is increasingly fragmented.

The Customer Engagement Maturity (CEM) score introduced by the report classifies brands based on their engagement strategies, from reactive to predictive. Brands that leverage AI for real-time personalization and long-term relationship building are better positioned to succeed in the Engagement Era. Despite this, only 34% of consumer product marketers in the UAE currently integrate customer engagement data with an ERP system, indicating a gap that needs addressing for brands to thrive.

Investing in AI-driven, real-time engagement technologies is becoming indispensable for brands aiming to succeed in the Engagement Era. As consumer product brands navigate the challenges of brand apathy and evolving customer expectations, the ability to deliver personalised, emotionally resonant experiences will be a key differentiator. This investment is not just a matter of luxury but a necessity for achieving revenue goals and establishing lasting customer loyalty in a competitive landscape.