Friday 22 June 2018

UAE teens 'spend 4 times the global average’

Dubai, May 17, 2011

Emirati teenagers spend four times more than that of global teens with an average weekly spending of $103, as compared to $28 of a global teen, said a report.

AMRB, a Dubai-based leading market research agency and TRU, the pioneer in global teen research, joined hands to release the second edition of the extensive report on the lifestyle, opinions, views and perceptions of Mena teens from UAE, Saudi Arabia and Egypt.

The study focused on Mena teens vis-a-vis global teens across 40 countries. The study was conducted among local Arab male and female teens aged 12-19 years across all socio-economic classes.

Face-to-face interviews were conducted with 2,000 teenagers (UAE, 400; Saudi Arabia, 800; and Egypt, 800).

“The study reveals interesting facts about the Mena teen’s consumer spending habits. Affluent background, aspirations to spend more, peer acceptance and willingness to work to earn more are some of the parameters that support the spending decisions of the Mena teens,” said Gagan Bhalla, CEO AMRB, Mena.

“Getting to know the spending habits of teens shows the great power they have as consumers. Marketers need to realise that the brand loyalty starts at young age and is carried on in adulthood.”

“Hence it is very important to understand the spending habits of teens. Mena Teens in particular are some of the biggest spenders, especially when it comes to clothing, gadgets, and entertainment,” Bhalla added.

The study emphasises on the economic diversity within Mena region wherein on one hand UAE teens splash all the cash and are highest spenders on other hand Egyptian teens spend the lowest.

Spending by Egyptian teens is way below Mena or even global averages The Egyptian teen spends one fourth ($7) of that of a global teen, while the Saudi Arabia teen is comfortable spending $56 in a week.

Expectedly the older teens mostly spend more than younger ones, which is obviously because they have more opportunities to do so. In UAE, girls shop as much as the boys – women have always been and will be shopaholics, said the report.

However, this is not the case with Saudi Arabia and Egyptian societies which defy the norm. Here, teen boys spend more than the girls – probably because they get more money, more opportunities to spend along with more exposure to the outside world, according to the report.

Typically referred to as the generation of “conspicuous consumption”, Mena teenagers are highly optimistic about spending more next year as compared to their global counterparts. Despite the difference in affluence levels, the focus in the region is on ‘consumption’ rather than ‘conservation’, the report said.

“Even the Egyptians, who don’t have much money, want to spend more next year – i.e., the concept of saving is not instilled into youth from a young age and this could potentially be an alarming situation during economic downturns,” said Bhalla.

Globally as many as 17 per cent teens feel they would be spending less this year, the

Mena teens do not seem to be affected by the economic downturn.

Most of the UAE teens plan to spend more (62 per cent) or the same amount (36 per cent). Given the saving the Saudi Arabia girls have, 74 per cent plan to spend more in this year.

Despite having the lowest absolute income in the region, Egyptian teens are much more positive about their spending outlook -75 per cent claim that they would spend much more in the coming year, which is not only higher than global average, but also higher that their more affluent neighbors, the report said.

Overall more than half of the Mena teens plan to spend more next year, according to the report. – TradeArabia News Service

Tags: Saudi Arabia | Egypt | Dubai | Survey | Spending | AMRB | UAE teens | TRU |

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