MENA Sees 15% Increase In Self-Gifting For Emotional Support, Study Finds
Flowwow, a gifting marketplace operating in over 30 countries, has collaborated with Admitad, a partnership marketing platform, to reveal their latest e-commerce market research findings for the Middle East and North Africa (MENA) region for the first half of 2024.
In the UAE, self-gifting saw a notable 15% year-on-year increase in the first half of 2024. This trend reflects changing consumer habits and social norms. Among those who buy gifts for themselves, 44% cited "mental health," "well-being," and "independence" as primary reasons. Popular self-gifting items included custom bouquets (+38%), balloons (+29%), and flower boxes (+26%), while handmade chocolates and bento cakes were less favoured.
Mobile shopping continued to rise, with smartphone purchases increasing from 36% to 39% in the first half of 2024. Saudi Arabia led with mobile orders exceeding 60%, followed by the UAE at over 50%. Turkey had the lowest share of mobile orders, below 20%. "The impressive growth in e-commerce across the MENA region highlights the resilience and expanding appetite of online shoppers," stated Anna Gidirim, CEO of Admitad.
The UAE remains a key player in the MENA e-commerce market. Online orders increased by 6% in H1 2024, while gross merchandise value (GMV) grew by 12% compared to H1 2023. The average transaction value rose from AED 344 to AED 433. Saudi Arabia led with over 20% order growth and more than a 25% surge in sales volume. Morocco also saw significant GMV growth at 23%.
Seasonal trends showed significant fluctuations. February through April saw peaks due to Valentine's Day, Ramadan, and Eid Al Fitr celebrations. Flowwow reported a staggering 90% rise in purchases during this period, with an 84% increase in February orders compared to January. March also peaked but saw a slight decline from February by about 25%. Despite overall growth, March's average transaction value fell by 25% compared to March 2023 due to discounts and promotions.
An analysis of average gift spending in the UAE for H1 2024 revealed notable changes. January saw a spending increase of 9.7%, which continued into February with an additional rise of 8.8%. Spending peaked at AED 159 in March but dropped sharply by 11.9% in April. May saw a slight recovery with a 1.3% increase, but June experienced another decline of 5.5%.
Self-Gifting Phenomenon in the UAE
Flowwow experts suggest that self-gifting can be seen as self-care amid increasing stress and fast-paced lifestyles. People reward themselves for achievements or simply to lift their spirits. It also signifies independence and financial stability as individuals choose gifts based on personal preferences.
"The e-commerce landscape in the UAE and broader MENA region is flourishing," said Slava Bogdan, CEO and co-founder of Flowwow. He attributed this growth to mobile commerce, technological advancements, diverse shopping occasions, and rising demand for convenience and same-day delivery.
The MENA region's e-commerce sector is projected to reach US$50 billion by 2025, driven by a young tech-savvy population with rising disposable incomes. EZDubai reported that the UAE's e-commerce market size reached AED 27.5 billion in 2023 and is expected to exceed AED 48.8 billion by 2028.
In terms of product categories during H1 2024, electronics (21.5%), fashion (20%), home goods (18.4%), and automotive products (8%) were most popular in MENA. The "Tools" category saw the highest order growth at +25%, followed by "Toys and Hobbies" (+16%) and "Automotive Products" (+14%).
The ongoing expansion of e-commerce in the UAE and MENA region underscores promising prospects for consumers and businesses alike. Technological advancements coupled with a youthful digital-savvy population are driving this growth forward.
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