MENA’s self-gifting trend grows 15% in emotional support shift

Flowwow, a gifting marketplace for local brands in 30+ countries, has partnered with Admitad, a partnership marketing platform, to unveil the findings from their latest e-commerce market research for the Middle East and North Africa (MENA) region in the first half (H1) of 2024.

Self-Gifting Phenomenon in the UAE

In the first half of 2024, Flowwow recorded an impressive 15% increase in self-gifting year-on-year (YoY) among UAE consumers, which signifies a shift in the country’s consumer culture and social norms. Notably, 44% of those who buy gifts for themselves cite “mental health”, “well-being” and “independence” as the main motivation. The most popular gift categories for self-gifting were custom bouquets (+38%), balloons (+29%), and flower boxes (+26%). Less popular were handmade chocolates and bento cakes.

Flowwow experts say the self-gifting phenomenon can be a form of self-care in an increasingly stressful and fast-paced world. People reward themselves for their hard work, achievements, or simply to boost their mood. At the same time, buying gifts for oneself can be an expression of independence, self-sufficiency, and financial stability, as their gifting choices are based solely on their own preferences and desires.

Booming E-commerce Scene: Saudi Arabia, the UAE and Algeria are taking the lead 

According to Admitad stats, the UAE remains one of the most active markets in the MENA region with online orders increasing by 6% in the first half of 2024, while the gross merchandise value (GMV) grew by 12% compared to the same period in 2023. The average transaction value in the UAE rose from AED 344 to AED 433.

The top-3 countries by order volume in the MENA region during H1 2024 were Saudi Arabia, the UAE, and Algeria, with Morocco closely trailing the leaders. Saudi Arabia led with the highest order growth of over 20%, while sales volume in the country surged by more than 25%. Morocco also demonstrated significant GMV growth of 23%.

Seasonal Fluctuations  

Seasonal trends show a surge during February, March and April, aligning with the Valentine’s Day, Ramadan celebrations, Eid Al Fitr, while sales generally follow a steadier pattern during the summer months. During the first half of 2024 Flowwow saw a staggering 90% rise in purchases, with a February peak driven by Valentine’s Day celebrations, leading to an 84% increase in orders compared to January.

March, marking the start of Ramadan, was also a time peak, though there was a slight 25% decline from February. Despite the overall growth, the average transaction value in March fell by 25% compared to March 2023, attributed to discounts and special promotions.

An analysis of average gift spending in the United Arab Emirates for the first half of 2024 reveals significant fluctuations. In January, the average spending increased by 9.7% compared to February. The upward trend continued into February, with average spending rising by 8.8% by March, reaching a peak of 159 AED. However, in April, there was a sharp decline of 11.9%. In May, a slight recovery was observed with a 1.3% increase, but by June, average spending fell again by 5.5%.

Flowwow CEO and co-founder Slava Bogdan stated: “The e-commerce landscape in the UAE and the broader MENA region is flourishing, fueled by a rise of mobile commerce, technological progress, a diverse range of shopping occasions, and a growing demand for convenience and same-day delivery. This upward trend is expected to continue as e-commerce companies utilize technology and consumer data insights to offer personalized, seamless, and user-friendly experiences that cater to evolving customer preferences.”

Mobile Commerce Everywhere

Mobile shopping continued its upward trend, with the share of purchases made via smartphones rising from 36% to 39% in the first half of 2024. KSA led the region with mobile orders surpassing 60%, followed by the UAE with over 50%. Turkey had the lowest mobile order share, below 20%.

“The impressive growth in e-commerce across the MENA region highlights the resilience and expanding appetite of online shoppers. The data shows a remarkable increase in both the volume and value of transactions, underpinned by the region’s vibrant holiday calendar and a continued shift towards mobile commerce. These trends underscore the region’s dynamic market potential and the growing importance of digital platforms in driving economic activity,” —  stated Anna Gidirim, CEO of Admitad.

In terms of product categories, electronics (21.5%), fashion (20%), home goods (18.4%), and automotive and motorcycle products (8%) were the most popular in the MENA region during H1 2024. The “Tools” category saw the highest order growth, up 25%, followed by “Toys and Hobbies” (+16%) and “Automotive and Motorcycle Products” (+14%).

In terms of product categories, electronics (21.5%), fashion (20%), home goods (18.4%), and automotive and motorcycle products (8%) were the most popular in the MENA region during H1 2024. The “Tools” category saw the highest order growth, up 25%, followed by “Toys and Hobbies” (+16%) and “Automotive and Motorcycle Products” (+14%).

Last Updated on 5 months by News Desk 1