Marketing Ramadan 2022: When community and confidence beat clutter and cash discounts
Economic, generational and societal changes modify consumer behaviour. What will impact the Ramadan economy in the longer term and how will brands adapt their marketing efforts?
Despite the pandemic’s challenges, Ramadan 2021 spending on gifts and groceries was still $38.5 trillion, significantly exceeding the $35.6 trillion spent during non-festive periods.
Starting Ramadan 2022, brands are pushing to translate increased consumer confidence into consumption, banking on an amplified digital savviness. However, marketers must look beyond cash discounts to attract consumers and break through the increasingly dense advertising clutter.
“I always advise clients that it's not just for the sake of showing up in Ramadan. It's really thinking about how your brand can support Muslim audiences in their aspirations to fulfil Ramadan,” Shelina Janmohamed, vice-president of Islamic Marketing at advertising and public relations agency Ogilvy, told Salaam Gateway.
“It’s not the place of a brand to tell somebody how to practise their religion or their faith, but it can be (its) place to help support their consumer in achieving their goals and objectives and playing a meaningful role in that way.”
However, generational opinions may differ on what is meaningful.
Janmohamed, who is also the author of Generation M: Young Muslims Changing the World, thinks there is tension among generations about the execution of Ramadan — the upholding of tradition versus the inclusion of modernity.
Looking at agency work carried out in the Middle East, she noticed how the proportion of cooked food at home has decreased and people buy frozen or other food.
“I think it’s linked to social shifts. Women don't want to be slaving in a hot kitchen cooking and more women are working,” she said
Regarding food, the marketing specialist also sees consumer conversations around what kind might be better options with which to break the fast and what to eat to have a more successful physical Ramadan supporting the spiritual side.
“While there's a lot of conversation about this among most audiences, I'm surprised brands haven't jumped on it,” Janmohamed said. “I think that is a gap waiting to be filled.”
In Indonesia, communications agency M&C Saatchi found consumers feel upbeat and optimistic about this Ramadan.
“Consumers want to take charge of their lives; to do more of what they love. They are sick of being told what to do or not to do,” Anish Daryani, founder and president of M&C Saatchi Indonesia, told Salaam Gateway.
With the Consumer Confidence Index at 119.6 and gross domestic product (GDP) expected to grow 5%, according to Daryani, this Ramadan is poised to exceed pre-COVID spending levels.
An M&C Saatchi consumer survey conducted in February revealed people were stockpiling their wish lists or carts, waiting for the Ramadan big sale. This demonstrates consumer confidence with gadgets – mobile phones, tablets, smartwatches and wireless headsets – as the most popular items to buy this Ramadan.
“Considering Ramadan contributes almost 30% of Indonesia’s overall GDP, advertising expenditure is likely to be much higher than 2021 to fuel the demand creation needed to drive this growth,” Daryani said.
He added the marketing opportunity for brands was to support this consumer mindset by creating new experiences that help people feel empowered and “in control” of their lives.
“Most advertisers target ‘prime time’ to reach their audience, which is mostly Sahoor or Iftar. However, Ramadan presents many micro-moments and, if brands engage with consumers then, they’d be heard and seen more attentively,” Daryani suggested as a way for brands to break through the Ramadan marketing clutter.
With 40 million new internet users coming online in 2021 and bringing the internet penetration in Southeast Asia to 75%, this Ramadan, Daryani expects an even greater adoption of digital for shopping, Zakat, gifting and giving away Tunjangan Hari Raya (THR), an annual bonus of one month's salary given to Indonesian employees.
Also banking on digital for shopping, in Singapore the Alibaba Group-owned e-commerce platform Lazada rewrote its marketing playbook and added community empowerment and competency building as new chapters. Immediately before Ramadan, Lazada launched its halal channel, designed to provide a greater presence for Muslim-friendly brands and sellers on the Lazada and RedMart sites.
Moreover, Lazada partnered with One Kampong Gelam (OKG) to digitalise Muslim-friendly businesses. Established in 2014, OKG is an association working to revitalise and develop Kampong Gelam, also known as Singapore’s Muslim Quarter, as a vibrant cultural district.
“It’s important that products and food available on Lazada are reflective of our community and our new Halal Channel was designed to support the Muslim and halal businesses and shoppers,” said Lazada Singapore’s chief executive Loh Wee Lee.
As part of the one-year exclusive partnership, Lazada will incubate OKG businesses with credits to jumpstart their digitalisation efforts and conduct seminars on e-commerce to educate and prepare them for the new trends in e-commerce, including live streaming on LazLive, and running campaigns.
RedMart, Singapore’s first fully digital and largest online grocer, will exclusively feature halal food products on the channel. It sits alongside other specialist channels dedicated to specific food products such as China Mart, India Mart, K Mart, and J Mart, curated to serve better RedMart’s Chinese, Indian, Korean and Japanese audiences respectively. Moreover, there are plans to introduce a halal cooking show and the distribution of groceries to those in need.
Meanwhile, the Lazada halal channel will list curated products and help businesses reach their intended customers through non-food related Muslim products from fashion to home and living.
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