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Covid-19 Economy Impact

Rise in e-commerce: social distancing economy during Ramadan 2020

Article-Rise in e-commerce: social distancing economy during Ramadan 2020

4AM cited as golden hour of online shopping during Ramadan

  • Social distancing contributed to an uplift in sales for certain categories, such as kitchen and dining, personal care and electronics.

Criteo (NASDAQ: CRTO), the global technology company powering the world's marketers with trusted and impactful advertising, has released its research on online consumer spending during the month of Ramadan. The surge in eCommerce purchases is expected to rise further during Ramadan as Muslims head online to prepare for the Holy Month.

A general uplift in online sales started around late February and significantly jumped mid-March. Categories that saw a massive increase in sales amidst the coronavirus crisis since March expectedly include protective gear, fitness, games, outdoor equipment, food, and video games consoles.

According to Criteo data, categories with the highest volume of sales since mid-February in MEA are personal care, clothing, kitchen and dining, electronics accessories, shoes, communications, audio, jewellery, décor and clothing accessories.

“Globally, we have seen daily web traffic surge by more than 50%. Due to the coronavirus pandemic, consumers have moved online: whether for work, school or shopping,” said Alistair Burton, Country Manager MEA at Criteo. “As most traditional retailers remain closed, we expect this trend to continue during Ramadan, a month that has a significant impact on purchasing and consumption in the region. Brands and retailers have the opportunity to listen to their customers, help them maintain traditions, and prove business continuity is in place.”

Last year, online retail sales started increasing from 10 days prior to Ramadan and reached a 47% increase, 10 days into Ramadan. Consumer activity slowed near the end of the period, with sales and traffic dropping by up to 13% during Eid al-Fitr. While people may have been more focused on celebrations with family and friends during this time, the following month saw a quick recovery and reinvigorated shopper interest and activity.

Across the world, the ongoing COVID-19 crisis has had a significant impact on the eCommerce landscape. A recent Criteo survey of more than 10,000 people showed that globally, half of consumers say they will purchase more online because of coronavirus.

Criteo’s findings suggest that about half of all countries around the globe are experiencing an uplift in online sales transactions; attributed to the shift in shopper behavior as consumers observe social distancing.



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