Ramadan & Eid 2019

Ramadan & Eid 2019 16 May 2019 Housekeeping 2

• Today’s webinar is scheduled to last 1 hour including Q&A • All dial-in participants will be muted • Questions can be submitted at any time via the Go to Webinar ‘Questions’ screen • The webinar recording will be circulated after the event Agenda 3

1 Marho Bateren, Market Intelligence Analyst, Planet

• Ramadan & Eid Tourism Insights • Key Nationalities • Arrivals Forecast

2 Said Chaarawi, Head of International Retail Development • About Ramadan & Eid • Selling tips for the Ramadan & Eid periods • Etiquette tips

3 Q&A Session 4

Marho Bateren Market Intelligence Analyst, Planet 5 The importance of Muslim Tourists 5

• The Muslim travel market is estimated to be worth a staggering US$192 billion in 2020.

• This figure will account for over 13 per cent of the global travel total [1].

• Every year millions of Muslims around Europe and across the globe observe Ramadan and celebrate the two Eid festivals, Eid al-Fitr and Eid-al-Adha.

• Many Muslims are choosing to travel abroad in order to practice and celebrate.

• Key source markets are GCC and South East Asia

• With this, retailers and hospitality providers need to be more aware and cater to the needs of these travellers.

[1] https://www.academia.edu/10469811/HALAL_TOURISM_A_NEW_GOLDMINE_FOR_TOURISM Gulf Co-Operation Council (GCC): 2018 6

Main GCC nations account for 9% of total Tax Free shopping sales, and represent 2% of global Muslim population

Tax Free Sales Vouchers/ Average Transactions Turnover Transactions Values

UAE -5% -9% 5%

SAU -8% -3% -6%

KUW -4% -7% 4%

QAT 11% 4% 7%

TOTAL -3% -5% 2% Number of factors affected GCC nations 7

Over-Dependence on Oil? Austerity Recovery Despite a strong drive in recent years by GCC authorities to diversify their economies, oil Fiscal reforms, new economic visions and rising oil prices are expected to take the Gulf continues to play a dominant role, constituting up to 46 percent of total GDP Cooperation Council (GCC) economies into a recovery path.

Dollar Pegged Currencies Qatar Blockade The UAE and other GCC countries (with the exception of Kuwait), all have currencies that are Qatar has been cut off by some of its powerful Arab neighbours over its alleged support for pegged to the US dollar. terrorism. South East Asia: 2018 8

SE Asia nations account for 3% of total Tax Free shopping sales, and represent 43% of global Muslim population

Tax Free Sales Vouchers/ Average Transactions Turnover Transactions Values

IDN -10% -15% 7%

IND 4% 2% 2%

PAK -7% 1% -9%

BGD 10% 1% 9%

TOTAL -4% -4% 0% Number of factors affected South East Asian nations 9

Manufacturing Heavy China’s Influence in the region Many countries within the region are dependant on the manufacturing of goods in order to drive Trade wars positively affect India’s trade. Beijing is a crucial player in the country's economic GDP growth. growth but increasingly unpopular

Recent Elections Security Concerns General elections has been underway recently in both India and Indonesia. International travel, Although Pakistan was recently removed from the US’ National Security Threat List, there is still especially for pleasure, can be effected due to political and civil unrest. a level of volatility within the country Ramadan & Eid Sales Performance: 2018 10

Ramadan drove the highest amount of sales growth versus the two Eid festivals

103%

44%

15% 2% 1% 1%

-15%

-29%

-46%

TOTAL GCC SEA

Ramadan Eid-Al-Fitr Eid-Al-Adha GCC Weekly Sales Percentage: 2018 11

Ramadan Ramadan Eid-Al-Fitr Eid-Al-Adha Eid-Al-Fitr Eid-Al-Adha

Eid-Al-Adha 6% 16% of SiS €582 ATV

5% 5%

Eid-Al-Fitr 3% of SiS 4% €577 ATV

Ramadan 4% of SiS 3% €708 ATV 3% 3% 3% 3% Weekly 3% Average: 1.9%

2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0%

Wk 1Wk 2Wk 3 Wk Wk 5Wk 6Wk 7Wk 8Wk 9 Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GCC Countries Weekly Sales Mix: 2018 12

UNITED ARAB EMIRATES SAUDI ARABIA KUWAIT QATAR Ramadan Eid-Al-Fitr Eid-Al-Adha

14% 15% 15% 17% 22% 20%

24% 25% 25% 28% 27% 27%

23% 25% 25%

21% 27% 28%

39% 35% 35% 31% 25% 28%

Ramadan Ramadan Eid-Al-Fitr Eid-Al-Adha Eid-Al-Fitr Eid-Al-Adha Eid-Al-Fitr 12% of SiS 5% €459 ATV

4% 4% Ramadan 10% of SiS 3% €435 ATV 3% Eid-Al-Adha 3% 4% of SiS 3% €408 ATV

3% 3%

2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Weekly 2% 2% Average: 1.9% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

PAKISTAN INDIA INDONESIA BANGLADESH Ramadan Eid-Al-Fitr Eid-Al-Adha

3% 2% 1% 1% 3% 3%

29% 40% 47% 47% 48% 58%

49%

53% 37% 47% 47% 30%

19% 12% 9% 5% 4% 4%

May-18 to Jul-18 TOTAL GBR FIN May-19 to Jul-19

+8.5% -4.1% +9.0% -6.3% -10.3% -11.7%

IRL DEU

+13.3% -4.5% +1.9% -0.8%

PRT CZE

+18.8% -12.9% +24.1% -9.5%

ESP FRA ITA AUT

+7.9% +1.3% +15.8% -10.3% +1.1% +2.6% +17.8% +2.7% Arrivals Outlook: India 16

May-18 to Jul-18 TOTAL GBR FIN May-19 to Jul-19

+10.0% +1.4% +5.7% +5.0% +3.6% +6.9%

IRL DEU

+18.1% +9.7% +2.7% +4.6%

PRT CZE

+43.0% -13.5% +32.5% -12.6%

ESP FRA ITA AUT

+22.8% +1.4% +10.7% -0.1% +15.2% -0.8% +1.6% -10.0% Shopping & Arrivals Growth Summary: 2019 YTD 17

Four out for the top five source markets during Ramadan & Eid are performing ahead of the total market +5% Top 5 Source Markets Total Sales Tax Free Sales Vouchers / Avg. Transaction Turnover Transactions Values (ATV) +1% UNITED ARAB EMIRATES 5% -3% 8% Total Vouchers KUWAIT 16% 10% 6% INDONESIA 17% 17% -0% SAUDI ARABIA 1% 14% -11% +3% INDIA 6% 5% 1% Total ATV

+2% Total Arrivals 18

Eid Al Fitr 2019 Said Chaarawi – Head of International Retail Development

18 Introduction What is Eid Al Fitr 20

• Eid is the festival of breaking fast after the holy month of Ramadan

• It occurs the day after the end of Ramadan

• Think of it as the Muslim Christmas in terms of festivities

• Please note that Ramadan and Eid are based on the lunar calendar so their dates are variable every year.

20 Dates to remember 21

• This year, Ramadan started on the 5th of May and will end on the 4th of June

• Eid is on the 4th or the 5th of June and lasts for 3 days officially but the festivities can go on for a whole week.

21 Trading period this year 22

• The first half of Ramadan would be quiet as Muslims tend to stay in their countries with their families

• The second half of Ramadan (last two weeks of May) would be the time to prepare for the Eid festivities which includes buying new clothes, gifts for family and friends and specialty sweets

• The key trading period this year is from Mid May till the first half of September.

22 The Commercial Opportunity

23 The Commercial 24 Opportunity

• The first half of Ramadan would be quiet as Muslims tend to stay in their countries with their families

• The second half of Ramadan (last two weeks of May) would be the time to prepare for the Eid festivities which includes buying new clothes, gifts for family and friends and specialty sweets

• The key trading period this year is from Mid May till the second half of September.

24 Tips on maximising the commercial opportunity when serving Muslim customers during the Eid

25 Store Atmosphere 26

• Always be in a festive mood when dealing with your Muslim customers during Eid… it’s their Christmas after all

• Expect to deal with big groups of friends and families so try to work as a team

• Best strategy is to treat your customers as guests in your house, not customers in your store… this ensures a long-lasting relationship and loyalty towards your store and brand.

26 Key Greetings 27

• Greeting for Ramadan is: Ramadan Karim • Greeting for Eid is: Eid Mubarak.

27 Maximising every 28 Transaction

• Try to stock many items suitable for gifting, like accessories

• Make sure to mention the availability of items suitable for gifting, even after your customer chooses what he/she would like to buy

• Expect resistance for placing orders for the future, Muslims want to buy what you’ve got in stock now!

• Always sell the look, not the product.

28 Going the Extra Mile 29

• Offer your full attention to the group you are dealing with and know that generosity is admired in Islam…

• A salesperson can be generous with time spent with the customer, product information offered and dedication to go the extra mile.

29 How to prepare from now 30

• It is a nice gesture to offer a little (non- alcoholic) sweet when the customer approaches the till to pay

• Don’t forget to send your greetings to your Muslim customers few days before Eid. This can be by email, text message, WhatsApp or a greeting card. This will remind your customers who are spending their holiday in your country to visit you for their shopping and increase footfall accordingly

• Check your customers’ database now to organise your Muslim customers’ contact list for preparation.

30 Etiquette Guidelines 31

• When dealing with couples, always engage with the same sex more than the opposite one… ex: If you are a male salesperson, talk more to the man in the group than to the lady

• Avoid offering your hand to the opposite sex for a handshake

• Do not attempt to touch the opposite sex even for the purpose of helping him/her try the product on.

31 Etiquette Guidelines 32

• When talking about money (presenting prices or taking payment at the till) always talk to the male in the group

• Avoid asking personal questions, but talk extensively about the holiday experience, fashion trends in Europe or things to do and see in your city

• Look at your customers as potential friends for life, this may ensure repeat and referral business

• Don’t forget to present your name and contact details to your customers before they leave and don’t be shy to ask them to recommend you and your store to their friends and family back home.

32 33

As always, your success is our success. So please don’t hesitate to contact us should you have any questions or need further specific advice.

[email protected]

33 Q&A

34 thank you

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