Ramadan 2023 – Planning marketing strategies for the upcoming Muslim New Year

Eid al-fitr is an important Islamic festival in Southeast Asia, and if international brands want to aim at this huge market of around 200 million buyers, they will have to grasp this opportunity and plan their marketing.
 
Eid al-fitr is equivalent to Lunar New Year and Christmas in other countries and regions. It is the most significant celebration in Muslim countries and usually takes place between April and May. In the Islamic calendar, September is the “month of Ramadan”. During this time, Muslims avoid drinking and fast from dawn till dusk to practice their dogmas, and cultivate their bodies and minds. When Ramadan ends, Eid al-Fitr will be celebrated!
 
To celebrate Eid al-Fitr, Muslims will stay ahead of this fasting month to shop for numerous items, from basic commodities and food to new clothes and gifts. According to statistics, the total spending during Ramadan 2022 increased by 9% compared with the previous year despite the inflation, confirming that it was the best time for brands to sell their products. In 2023, Ramadan will start on March 22 and last until April 22, welcoming Eid al-Fitr afterward. 
 
In this article, TenMax will introduce you to the four key consumer insights and marketing strategies during this special time. Let’s dive in and learn more about the business potentials awaiting you.
1. 4 stages of Ramadan: Beauty and Food & Beverage industries dominate with many great business opportunities
The lifestyle of Muslims alters during Ramadan, including their shopping behaviors. Two weeks before the start of Ramadan, Muslims’ interest and demand for decorations and fashion increased significantly. Then after fasting for one to two weeks, they become more interested in food and cooking as they don’t drink or eat during the day, which turns this into the best period for selling food and cooking utensils. One week before Eid al-Fitr, they start looking for products related to beauty, fashion, gifts, and restaurants. And finally, on Eid al-Fitr, when Muslims return to their regular lifestyle and can dine during the day, the craving for delicious food will drive restaurant traffic to its peak.
 
Meta’s 2023 report has proven that Muslim people love to buy food during this time; particularly 68% of Muslims have purchased food and beverages during Ramadan. Since they cannot eat during the day, they must recharge their energy quickly at night, making snacks and delivery services even more crucial. In response to consumer demand, 38% of Muslims have bought desserts and 34% of Muslims are reported to have meal delivery while fasting.
 
Fashion clothing is the second most popular sector during Ramadan. According to statistics, 55% of Muslims have bought new clothes in this special month. The remaining is concerned about other sectors like charitable giving, healthcare and beauty, religion, spirituality, and tourism. It is important to note that when compared with the previous year’s consumption, tourism and fashion are the two industries seeing the largest growth. As a result, brands from these industries should launch marketing initiatives as soon as possible!
2. The digitalization of consumption in Southeast Asia: Online shopping accounts for 78% after the pandemic
Google’s latest report has shown that 80% of Indonesian Muslims would buy various types of goods before Eid al-Fitr, emphasizing their purchasing power during this holiday. When international brands want to grasp business opportunities and elevate their performance in this time, the key point is to master all shopping channels. In addition, according to the report, consumers in the Southeast Asia region usually watch movies and play games online as a result of the pandemic impacts in recent years. The number of internet users has expanded sharply, and online shopping has become the norm.
 
In terms of consumption habits, 94% of buyers found new brands or products through videos in 2022, which is a significant shift from the 46% of consumers who still prefer in-person shopping in 2018. Back before the outbreak, 50% of Southeast Asian consumers said they would not shop for FMCG (fast-moving consumer goods) online. But the survey last year revealed that the percentage of FMCG online purchases had grown to 78%. This indicates a huge difference in Muslims’ shopping behaviors before and after Covid.

Ramadan brings high potential for online sales, but how could the companies grasp buyers’ preferences? KOL marketing and using videos are the two most effective strategies. According to a Meta survey, 65% of Ramadan buyers spend more time watching videos while 59% of buyers favor brands that cooperate with trusted KOL. It is recommended that brands should use these strategies and plan on creating audio and video content, especially religious topics and entertainment comedies that would attract audiences during Ramadan.

3. Post-pandemic era kicks off the homecoming wave and localized marketing becomes more crucial than ever
The pandemic has not only affected digitalization but also led to the fact that people are now more willing to travel and visit their relatives and friends. In Indonesia, where the Muslim population accounts for a large percentage of 87%, many choose to study and work in different cities. And in such a special event like the annual Ramadan, they would return to their hometown (called “mudik” in Indonesia) to spend time with their loved ones. 
 
In 2022, the Indonesian government estimated that around 85 million people lived and worked in big cities. During the fasting period of Ramadan, lots of people went back to their hometowns, which increases the business opportunities in the suburbs and remote villages.
 
Data shows that these returnees have more purchasing power. While 58% of Muslims shop for clothing, personal care, and telecommunications products in the big cities, people still prefer to buy food and drinks in their hometowns. It is also reported that in Ramadan, suburban areas such as Surabaya, Semarang, and Purwokerto saw sales growth between 10-25%, way higher than the 3% growth of the capital, Jakarta.
 
The post-pandemic trend leads to the fact that traditional business opportunities are distributed more evenly. Besides, consumers are more willing to buy products that meet their tastes and recognition. Brands operating internationally should customize a digital marketing strategy and attract more buyers to raise sales. For example, they can develop more specific creative materials for different regions, or use AI marketing tools to create automated advertisements to target potential buyers more effectively.
4. How to plan your marketing to accelerate sales in Ramadan 2023?
How should cross-border brands plan their digital marketing to stand out and attract consumers during the coming Ramadan? In response to consumer trends in Southeast Asia, Meta recommends that businesses should promote their brand concepts accordingly during Ramadan to express the concepts taught in Islam, like kindness, giving, or dedication, to enrich Muslims’ impression with of brand and use different channels for personalized advertisements and business messages to encourage buyers to place their order.
 
It is recommended that the brands divide their promotion into three stages and set the goal for each stage if they wish to plan and grasp more sales during Ramadan. In the first stage, brands should be all equipped and ready to reach a large number of Muslim audiences with eye-catching, creative, and visually impactful advertisements. In the second stage, with more competitors entering the market, cross-border brands should pull out their best efforts to show their characteristics, provide high-quality content, and establish connections with consumers via tailored advertisements. In the third stage with conversion as the goal, it is easy to target potential customers from the majority through automated marketing tools and achieve the marketing goals.

Let’s seize the opportunities the time of the Muslim New Year and become the best seller! TenMax Creative Ads one-stop solution AdNeon. With lots of eye-catching styles to help brands better plan their holiday marketing!

To enter the Southeast Asian market, businesses must capture the opportunities during Ramadan/Eid al-Fitr from March 22 to April 22 this year. Plus, in 2023, the world will enter the post-epidemic era, and by understanding the most recent consumption behaviors in Southeast Asia and making advance plan, cross-border brands will be able to reach the sales peak of the whole month!

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