Ahead of Ramadan 2024, Understand Consumer Shopping Patterns and Optimize Online Business

Indonesia is the country with the largest Muslim population in the world with 240,62 million people. It is not surprising that the month of Ramadan is a moment that the majority of people look forward to, from aspects of spirituality to physical readiness.^[1] With people's enthusiasm and spending increasing, especially in preparation for Ramadan and using Hari Raya Allowances to welcome Eid al-Fitr, business people can take advantage of this moment to increase their sales.

The latest survey from The Trade Desk shows that 67% of Indonesians plan to allocate at least a quarter of their THR to celebrate Ramadan 2024. In addition, 48% of consumers reported an increase in spending driven by optimism about improving economic conditions.^[2] In the online realm, SIRCLO's internal data shows that throughout the month of Ramadan from 2021 to 2023, there is growth in the average number of shopping transactions online by 62,5% and the number of consumers shopping online increased by 36,5%.

Responding to this phenomenon, Danang Cahyono, Chief Operating Officer of SIRCLO stated, "Optimism about increasing consumer purchasing power from year to year is in line with the significant increase in consumer interest in shopping online." online in this digital era. "So by studying the latest online shopping trends, we can use this information to develop sales strategies that are right on target in the month of Ramadan 2024."

Analyzing Shopping Trends to Support Sales in the Month of Ramadan

Along the way, he supports online sales businesses online for more than a decade, SIRCLO summarizes data on consumer shopping behavior during the month of Ramadan which can help business people optimize their sales in online stalls, good through websites, marketplacesand live shopping. The following are the trends and strategy recommendations shared by SIRCLO:

• Five Consumer Favorite Product Categories in the Month of Ramadan

Shopping Trends: SIRCLO's internal data finds the top five categories most frequently interested in by consumers online during Ramadan in 2023, that is Beauty & Personal Care, Healthcare Logistics, Home Living, Food & Beveragesand Fashion. Ramadan traditions such as preparing hampers, maintaining health during fasting, and buying new clothes for Eid al-Fitr are the main drivers of this shopping pattern.

SIRCLO also noted that public enthusiasm was increasingly visible with the growth in shopping basket size (basketball size), especially in the Fashion category which increased by 12%. Data from The Trade Desk also supports this finding, showing that 1 in 3 Indonesian consumers tend to shop more during Ramadan.^[3] Not only that, YouGov reported an increase in spending in various categories, including Food & Beverages (43%), Fashion & Accessories (27%), and Beauty & Personal Care (20%).^[4]

Next Strategy: The month of Ramadan has a significant influence on people's shopping habits and needs, especially in certain product categories. This trend of increasing shopping provides an opportunity for business people to boost sales figures at online stalls by designing special product offers for the Ramadan and Eid editions.

• Sahur and Iftar: The Golden Hours for Shopping for Ramadan Needs

Shopping Trends: SIRCLO also discovered interesting trends regarding shopping time patterns online during the month of Ramadan 2023. Before the Ramadan period, the most popular shopping time or prime time falls at 19.00 – 20.00 WIB. During Ramadan, prime time Online shopping is spread over several times, namely at dawn, especially at 04.00 – 05.00 WIB, after breaking the fast, namely at 19.00 – 21.00 WIB, and at exactly midnight or 00.00 WIB.

Next Strategy: This data can be a reference for developing sales strategies online through features live-shopping. Now live-shopping has an increasing interest across age groups, with the highest percentages falling on Gen Z (87%), millennials (86%), and Gen X (82%).^[5] Business people can prioritize excellence live-shopping to present more interactive product demonstrations to consumers during the period prime time shop online.

• Not just big discounts, take advantage of other types of promotions

Shopping Trends: Product promotions in the month of Ramadan are important for business people, because they can influence consumer shopping decisions. TGM Research data shows that 41% of respondents are looking for special offers and promotions for their shopping needs during the month of Ramadan.^[6]

Next Strategy: There are various promotional strategies that can be implemented by business people across product categories, including:

• Bundle Deals and poison for fast-turnover consumer products, including products Food & Beverages and Beauty & Personal Care,, because it can increase the perception of product value, encourage trial products (trial), and open up opportunities cross-selling.
• Buy xx Get xx for product categories Healthcare Logistics, because it accommodates consumers who focus on practicality in their family's daily needs.
• Buy more, save more for category Home Living who are looking for convenience and cost savings.
• Giving voucher can be targeted to categories Fashion, appealing to consumers who care about style and the latest fashion trends.

These types of promotions are expected to be able to maintain consumer loyalty compared to simply providing discounts, because they can build a higher image for the value of the product.

• Reach Out to Mothers Tech-Savvy, Determinants of Ramadan Shopping in the Digital Era

Shopping Trends: The role of women in the family, as mothers and wives, is very crucial in making shopping decisions, including during the month of Ramadan. According to SIRCLO's internal data, around 40.1% of mothers search for product-related information via micro influencers. Meanwhile, in terms of shopping behavior, 1 in 3 mothers shop through online. This shows the importance of their role in shaping mothers' purchasing decisions.

SIRCLO found that the main categories of shopping online What mothers are interested in is in line with Ramadan trends in 2023, such as daily necessities (one of them Food & Beverages), Beauty & Personal Care, and healthcare.

Next Strategy: This behavioral pattern opens up great opportunities for businesses to expand market share, such as collaborating with micro influencers, especially momfluencers, to reach millennial mothers who are digitally connected.

When developing and implementing strategies for the month of Ramadan, business people can adopt strategies omnichannel to ensure a good shopping experience seamless pattern in every sales channel online. This strategy allows business people to increase consumer comfort when interacting with each other sales touchpoints through integration of every sales channel, without any limitations.

"The effectiveness of online sales strategies depends on the ability of business actors to understand and meet consumer expectations during the Ramadan period. A forward-thinking approach to selling seamlessness, data analysis and strategy adjustments according to shopping trends in each sales channel online, able to increase sales and consumer loyalty to a brand. "Therefore, SIRCLO emphasizes the importance of innovation to provide the best service to consumers in achieving long-term success for business owners," concluded Danang.

^[1]https://databoks.katadata.co.id/datapublish/2023/10/19/10-negara-dengan-populasi-muslim-terbanyak-dunia-2023-indonesia-memimpin#:~:text=Berdasarkan%20laporan%20The%20Royal%20Islamic,62%20juta%20jiwa%20pada%202023

^[2]https://www.metrotvnews.com/read/KvJCaVgY-riset-32-masyarakat-indonesia-bakal-belanja-di-ramadan-2024

^[3]https://www.medcom.id/teknologi/news-teknologi/ybJ061nK-1-dari-3-orang-indonesia-berbelanja-lebih-banyak-di-ramadan-2024

^[4]https://business.yougov.com/content/46412-ramadan-2023-consumer-spending-online-offline?redirect_from=%2Fcontent%2F7986-ramadan-2023-consumer-spending-online-offline

^[5]https://data.goodstats.id/statistic/pierrerainer/inilah-profil-penonton-live-shopping-ri-berdasarkan-usia-Kbrui

^[6]https://tgmresearch.com/ramadan-2023-insights-in-indonesia.html