SEA retail sales during Ramadan to see nearly 50% growth

Malaysia saw the highest average increase in sales with 40%, whilst Singapore gained 30% in 2023.

Total consumer spending in Southeast Asia during the 2024 Ramadan period is projected to increase by 43.41%, despite inflationary pressures and rising concerns over costs of living, according to Criteo.

Within the SEA region, Singapore and Malaysia have anticipated more moderate growth in consumer spending, and Indonesia has anticipated consumer spending to remain high, particularly propelled by its national elections.

However, Ramadan remains a draw for consumers, as seen from its 2023 performance. The first two weeks of Ramadan saw a 47% increase in sales. Malaysia experienced the highest average increase in sales with 40%, whilst Indonesia and Singapore gained a 30% and 16% increase, respectively.

Additionally, Malaysia and Singapore achieved a peak in sales during the first half of Ramadan – particularly on 2 April – with 103% and 46%, respectively. However, Indonesia gained a steady increase in sales throughout the Ramadan period, with an uptick of 79% on 4 April and a second peak leading to a 74% increase on 14 April.

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In contrast with year-on-year (YoY) sales, Singapore and Malaysia supplanted a 19% and a 17% uptick, respectively, thanks to strong consumer spending and rising transactions. Conversely, Indonesia experienced a 5% decline in online sales, attributed to the difference in spending patterns over the market. As for the entire Southeast Asia, the region saw an 8% YoY increase in 2023, a rise in sales from 2022.

“Given the varied economic landscape in SEA and heightened demand during Ramadan, it is necessary for marketers to revamp their strategies to effectively reach their audience. Marketers need to take note of the trends to ensure that their advertising strategies are effective and engaging to their audiences at the most optimal timings,” Taranjeet Singh, Managing Director for Enterprise, APAC of Criteo, said.

For 2024, drivers like first-party data, retail media platforms, stock-keeping units data and cross-channels will be essential to heighten engagement with Ramadan shoppers.