TGM Pakistan Ramadan Insights 2023

Ramadan, a significant event for Muslims around the globe, is set to be commemorated with great fervor in Pakistan, with an estimated 98.9% of the Muslim population participating in this year's festivities. During this holy month, followers of Islam engage in prayer, fasting and introspection. This is the most awaited season for 97% of Pakistani respondents, who cherish the chance to bond with their families (86%).

According to TGM Ramadan Survey Results in Pakistan, 74% of respondents across all age groups expressed a desire to prioritize worshiping. Especially middle-aged adults are particularly active in traditional Ramadan practices such as worship, communal gatherings, and charitable work. The Holy month also signifies the spirit of giving, with 67% of the Pakistani Muslim population being enthusiastic about contributing to charities and supporting those in need, reflecting a culture of generosity and compassion.

Following a period of isolation, the upcoming break provides a much-needed opportunity to partake in the holy month's warmth, generosity, and treasured traditions. Despite 21% of Muslim participants in Pakistan expressing concern regarding the COVID-19 pandemic, this Ramadan is anticipated to serve as a return to familiarity, a time for coming together, and a celebration of the community's strength and perseverance.

Ramadan is not just a sacred month for Muslims but also a significant period for businesses worldwide. The month presents many opportunities for brands to connect with Muslim consumers by showcasing their understanding and respect for the religious and cultural significance of Ramadan. This has led to an increase in the number of brands that aim to associate themselves with Ramadan every year. In Pakistan, Khaadi has emerged as the top choice among fashion brands, followed by J. Junaid Jamshed (clothing brand), Qarshi (pharmaceutical company), Hamdard (pharmaceutical company), and National Food. These companies have successfully tapped into the spirit of Ramadan by offering consumers products and services that are tailored to meet their specific needs during this time.

Smart shopping pattern tends to be more common. Consumers nowadays are motivated by direct savings more than ever, they don’t want to miss out on any chance to save money. They prefer to get a direct price discount than get free shipping or additional gifts. Also, when shopping online consumers prefer to pay for their online shopping with credit cards (27%) to get more advantages such as points, cashback, or additional buyer protection.
There are many strong brands in e-commerce, and their success can be attributed to various factors such as the quality and uniqueness of their products, their reputation and brand recognition, the effectiveness of their marketing and advertising efforts, and the overall customer experience they provide. Some examples of well-known and successful e-commerce brands include Amazon, which is one of the largest and most successful e-commerce companies in the world; in our, study Amazon is considered the strongest eCommerce brand worldwide.

Ramadan is a momentous occasion for Muslims, with fasting being a crucial component of the celebration. In Pakistan, the fast is observed by 98% of surveyed Muslims, making it the most prominent religious season that unites Muslim communities in their commitment to spiritual and compassionate practices. Alongside daily gatherings and communal prayers, charitable events and Iftar or Suhoor outings are all integral to the month of Ramadan. It's a time of year that Pakistani Muslims eagerly anticipate, as it offers them an opportunity to connect with their faith and bond with loved ones through shared traditions.

Increased Budget for Food Expenses
Many people often assume that food consumption decreases during the month of fasting, but this is not the case. On the contrary, food consumption increases throughout Ramadan as families indulge in feasts after a long day of fasting. Food shopping is a significant part of this month, with consumers purchasing gourmet dishes and imported foods to enhance the social aspect of eating during Iftar. With the convenience of delivery apps, fewer meals are being prepared at home. This year, the budget for food spending is expected to increase in Pakistan. 51% of those surveyed stated that they intend to spend more on food and drinks than in previous years. It is possibly due to rising consumer prices. This shift in spending patterns may have broader implications for the regional economy, as it could impact both supply and demand in the food industry, leading to changes in pricing, distribution, and consumption habits.

Ramadan embraces convenience
In Pakistan, cooking at home remains the most common way of consuming food during Ramadan, comprising 87% of meals. However, purchasing ready-made meals from local markets/grocery stores has become the preferred option for 33% of consumers, followed closely by mobile apps (30%). This shift towards pre-prepared foods enables busy families to participate in traditional Ramadan feasts, even if they don't have the time to cook.

Mobile devices have become indispensable for the Pakistani Muslim community's observance of Ramadan. With the rising popularity of smartphones and social media, an increasing number of people are turning to digital platforms to access news, entertainment, and spiritual guidance during this sacred period.

During Ramadan, more people are turning to mobile devices and digital platforms for their media consumption needs. This shift is attributed to the convenience, accessibility, and interactivity of digital platforms. 67% of respondents in Pakistan choose to spend more time using mobile devices during Ramadan, making it the dominant media form, surpassing all others, followed by social media (57%). Only 13% of participants said they spend time on the radio during the observance.

In Pakistan, social media plays an integral role in enabling Muslims to stay connected during Ramadan, with 91% utilizing it to send greetings and well-wishes to friends and family. Additionally, 85% of Pakistani Muslims use social media to learn new things, find spiritual inspiration, or shop for themselves. This presents a significant opportunity for businesses as 74% of participants leverage social media during Ramadan to discover enticing deals and promotions for their shopping endeavors. As such, companies can release Ramadan-specific advertisements and offers tailored to Muslim shoppers' needs and preferences, thereby generating increased sales and customer loyalty during this crucial period.

According to the TGM 2023 Ramadan Survey Results, Islam 360 is the most popular app for this purpose in Pakistan, with 22.5% of respondents saying that they use it. Quran comes in second place, with 14.3% of survey participants indicating its use. These findings underscore the growing importance of technology in the religious lives of Pakistani Muslims, offering them easy access to resources such as prayer times, translations, and other tools that help them practice their faith in everyday life.

Ramadan is a time of vibrant market activity in the Muslim world, with shoppers eagerly indulging in retail therapy. Retailers seize the opportunity to offer exclusive deals and extend their store hours to cater to the high demand. During the holy month, consumers are more open to discovering new products and supporting local businesses that align with their values. In Pakistan, a whopping 74% of survey respondents expressed their desire to explore new brands during Ramadan shopping expeditions.

Hunting for the best deals
While Pakistanis may be willing to experiment with new products, price and discounts are the main factors driving their purchasing decisions. TGM's 2023 Ramadan Survey for Pakistan reveals that 96% of surveyed shoppers prioritize affordability during this festive period. Promotions also play a pivotal role in shaping their buying behavior, with 95% of respondents indicating its importance in making their final purchase decision.

The gift that keeps on giving
The tradition of Ramadan gift-giving adds to the excitement and anticipation of the holy month, and this year's spending on gifts is expected to rise across Asia. In Pakistan, 44% of respondents have expressed their intention to increase their budget for buying Ramadan gifts compared to last year. This trend indicates a growing emphasis on generosity and community spirit during the festive season. People are increasingly turning to online platforms to find inspiration for Ramadan purchases, with YouTube emerging as a popular choice. A staggering 77% of Pakistani shoppers have reported using the video-sharing platform to discover new ideas and inspiration for their Ramadan shopping. This development highlights the increasing influence of digital media on consumer behavior in the country.

Shopping Online vs. Offline
Ramadan is widely regarded as an occasion for socializing with loved ones, and in-store shopping allows people to relish this experience together. Additionally, many individuals attach great importance to charitable acts and community support by patronizing local markets and small businesses instead of high-end malls and supermarkets. Therefore, it's interesting that 35% of Pakistani participants have revealed their inclination towards in-store shopping to fulfill their Ramadan needs.

Covering Ramadan 2023 Expenses: Bank loan / Credit planning
Ramadan is a time of increased spending for many Muslims, which has led to a surge in demand for personal loans from banks and financial institutions. According to the TGM 2023 Ramadan Survey, almost 1/4 of respondents in Asia will seek loan options to support their Ramadan expenditure this year. In Pakistan, approximately 17% of survey respondents reported plans to seek out loans.