Consumers in the UAE are more economical in spending after “Covid-19”Truth Consultancy
The economist and managing partner of Truth Economic & Management Consultancy, Reda Mosallam, said that the impact of “Covid-19” on consumer behavior in the country is divided according to the economic segments of society. There is a segment of wealthy people, and this is will not be affected by the circumstances of Corona, As for the second segment, it is a segment of senior employees from bank directors and managers of large companies, and this category changes their loyalty to luxury brands as a result of the repercussions of Corona, and it is expected that they have turned to less expensive brands.
And Mosallam added that the third category, which is the largest group in society, which must be highlighted, is the middle class, which represents the real consumer spending in the country, it is most likely that the incomes of this group were affected either by salary cuts or by partial layoffs.
He added that the middle class often gave up spending on luxuries, and their loyalty to brands may have decreased, whether in clothing, perfumes or restaurants. As for necessities, likewise, it reduced spending on it, finding the cheapest things.
Mosallam emphasized that this frugal behavior among a large segment of society is expected to continue at least until mid-2021, until people feel that things have returned to normal, and that consumers need a recovery period that will remain the title of caution and savings for a period of up to 6 months, and therefore the situation will not return to normal as it was before Corona until 2022.