The Business of Love: Valentine’s Day and the Future of Social Shopping in the Middle East

If someone told you that spending on Valentine's Day is increasing at more than 20 times GDP, would you believe them?

Well, this is how much the romantically inclined UAE consumers are splurging on 14 February. The latest Mastercard Love Index reveals that in the UAE, e-commerce transactions leading up to Valentine’s Day have surged by 117% since 2018. Unsurprisingly sales of flowers, cards, and chocolates in particular all see significant increases in the week leading up to the celebration.

This trend is not just happening in the UAE: Google data suggests that across the GCC countries, queries related to romantic gift ideas almost trebled in the first two weeks of February.  According to a global survey by the National Retail Federation, MENA consumer spending on Valentine’s Day was the highest ever in 2023. Online shopping, especially through social media platforms, has emerged as the most popular venue for gift purchases. 

How has Valentine’s Day shaped online shopping, and what does it tell us about the future of e-commerce in the region? We’re here to find out. 

Valentine’s Day & Online Shopping in the Middle East

The sheer scale of Valentine’s Day shopping is remarkable. In 2022, Emirates SkyCargo transported more than 3,000 tonnes of fresh roses to the UAE in the run-up to 14 February. To put it into context, that was three times more than Germany – which has 10 times the population – over the same period.

The range of retail offerings – mostly advertised online – is equally astonishing, from the flash sales of cards and stationaries for less than AED 50 (~USD 13.6) to the all-inclusive couple staycation packages at the Hilton Palm Jumeirah for AED 50,000 (~USD 13,600). 

A recent report by ME Retail News reveals that GCC retailers are increasingly going online and focusing on a new generation of consumers to drive Valentine’s Day sales. These consumers – led by Gen Z – are more likely to look for easier online payment options, interactive and personalized content, and a seamless e-commerce experience: for instance, 75% of UAE consumers believe that their online interactions with retailers result in their purchasing more from their favorite brands. 

This trend goes beyond Valentine’s Day sales: the e-commerce sector in the Middle East is projected to hit a market size of USD 50 billion by 2025, fueled by the adoption of advanced technologies and supported by government efforts to foster digital economies. With its young, tech-savvy crowd and growing disposable income, the region is a prime spot for retailers and startups to dive into the online shopping scene.

Social Media: The New Money Machine in Middle East Retail

One of the most dynamic segments of e-commerce in the region is social shopping or social commerce. Remember those personalized ads on Instagram that you inadvertently clicked into? Well, they are just the tip of a much larger iceberg. 

A powerful tool for retailers, social shopping allows brands to use social media platforms like Instagram and TikTok to market their products and services to customers. TikTok Shop, for instance, made USD 17.5 billion in revenue last year and is en route to wrestle a significant share of the USD 5.8 trillion global e-commerce business from Amazon. 

In the Middle East, social commerce is swiftly becoming a staple of the online retail landscape, with social media channels driving over 30% of purchases in the 400 billion US dollar MENA retail market. 60% of UAE consumers have already engaged in social media purchases in the past year, underlining the region's enthusiastic adoption of this trend. 

Reflecting this momentum, the social shopping market in the Middle East is projected to expand at an impressive rate of 33% annually over the next five years, positioning it as one of the world's fastest-growing regions in this sector. 

One standout feature of social shopping is the ability to make sales through live streaming. This innovative approach lets online shoppers on platforms like TikTok and Instagram interact directly with retailers by commenting and asking questions, while products available for purchase are displayed on their screens. In response to this trend, local startups are stepping up. For instance, Zbooni, a multimillion-dollar venture from the UAE, has rolled out an app that streamlines the checkout and invoicing process for retailers on social media across the UAE, Saudi Arabia, Egypt, and Jordan, processing more than USD 200 million of transactions since 2018. 

 How Increased Social Media Consumption is Driving Sales

In the UAE, social media is already playing a key role in retail activities. Our research shows that more than 2 in 5 local consumers are using Facebook, Instagram, and TikTok to discover new brands. This is nearly a 35% jump from 2021 and has surpassed the use of search engines.

Social media usage is on the rise across all age and income groups, with nearly a third of consumers in the UAE dedicating more than three hours daily to it — a 15% increase from the previous year. Gen Z, in particular, is leading this trend by spending an average of 3.5 hours on social platforms everyday. Moreover, those who frequently use social media show a 20% greater interest in the latest technological advancements, are 15% more likely to opt for the premium versions of products, and 30% more interested in social issues, including the environment and community development.

TikTok and Instagram have emerged as the go-to apps for consumers in the UAE. A significant majority – over half of TikTok's regular users – are younger than 25. Additionally, within the past six months, more than a quarter of TikTok users have made purchases through livestreams, and nearly 20% have discovered new brands through influencers they follow. It seems that the Middle East is following in the footsteps of China and the US where social platforms have become indispensable for retail engagement and consumer influence.  

Looking Ahead 

Beyond boosting sales on occasions such as Valentine’s Day, social shopping is set to integrate further into the online retail scene in the region. According to the Global Web Index, the Middle East is the only region in the world where social media use hasn’t plateaued. The UAE, Bahrain, and Qatar are ranked by UNESCO as the top three countries worldwide for the take-up and usage of social media platforms. With its robust social media integration and tech-savvy population, the region is poised to become a key player in shaping the future of global digital commerce for years to come.

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