Criteo analyzes shopping habits during Ramadhan 2016 in Southeast Asia

Online retail activity in Southeast Asia (SEA) sees a surge in the weeks leading up to and during Ramadan, according to data from performance marketing company Criteo.

E-commerce sales escalate significantly, peaking in the third week of Ramadan with a 110% increase.

However, online browsing and shopping decrease during sunset hours, likely due to the breaking of the daily fast. Post-fast, e-commerce activity experiences a resurgence, presenting a valuable opportunity for retailers.

Mobile devices continue to dominate as the preferred platform for product discovery and purchases, reflecting a 126% growth during Ramadan.

Source: Criteo infographic. Fashion sells best during Ramadhan.

Source: Criteo infographic. Fashion sells best during Ramadhan.

Criteo’s analysis indicates that while the three weeks preceding Ramadan and the third week of Ramadan witness heightened online activity, there is a dip in sales and traffic during Eid al-Fitr (Hari Raya), the holiday marking the end of Ramadan.

Criteo observed a 67% average increase in online retail sales and a 14% rise in online travel sales during the peak periods.

The data also highlights the impact of Ramadan traditions on online consumer behavior. E-commerce activity sees a dip between sunrise and sunset during the fasting period but picks up significantly after breaking the fast.

With mobile apps accounting for 37% of onsite retail conversions, Criteo emphasizes the need for retailers to prioritize mobile-first strategies. Fashion emerges as the leading category during this period, followed by home and living, electronics, toys, and games.

Alban Villani, General Manager, Southeast Asia, Criteo, underscored the significance of Ramadan as a festive period in the region. He emphasized that the rise in disposable incomes and demand for modest fashion, halal products, and services necessitates that retailers leverage intelligent solutions to connect with shoppers effectively across various touchpoints. Villani advised retailers to optimize digital marketing efforts, particularly post-sundown and on Eid, to capitalize on increased online engagement.

Criteo based its findings on the analysis of over 8 million online transactions from 143 retailers across Indonesia, Malaysia, and Singapore.

Key takeaways include a notable increase in website traffic and e-commerce sales commencing three weeks before Ramadan, culminating in a peak during weeks three and four with a respective surge of 110% and 77%.

The onset of Eid al-Fitr witnesses a decline in online sales (44%) and website traffic (20%). However, the week following Eid experiences a rebound in online sales, marking a 35% increase.

Weeks three and four of Ramadan saw online mass merchants emerging as the top performers, recording an 87% and 52% growth, respectively.

The prevalence of cross-device shopping behavior was evident, with 46% of shoppers engaging with products across multiple devices. Notably, one in four shoppers switched devices at least three times during their purchasing journey.

Villani also stressed the need for retailers to embrace omnichannel marketing, citing the growing trend of online-to-offline (O2O) shopping. He emphasized that mobile plays a pivotal role in O2O retail, serving as a foundational building block.

As Ramadan 2017 is anticipated to begin around May 25, 2017, with variations based on moon sightings, Criteo encourages businesses to leverage these insights to make informed decisions for their Ramadan campaigns.

Interested?

Download the infographic on Ramadhan 2016

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