Saudi consumers remain optimistic about economic recovery, however they continue to spend less on discretionary items and more on essential goods.
These exhibits are based on survey data collected in Saudi Arabia from January 25 to February 10, 2021. Check back for regular updates on Saudi consumer sentiments, behaviors, income, spending, and expectations.
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
McKinsey Survey: Saudi consumer sentiment during the coronavirus crisis
1. McKinsey & Company 1
The survey results show four fundamental shifts to consumer
behavior, some of which will have a lasting impact
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; sampled and weighted to match the KSA’s general population 18+ years
Up to 35%
net increase in intent to
spend online even post
COVID
2. Flight to digital
and omnichannel
25-40%
of consumers (net) say
they will decrease spend
on discretionary categories
1. Shift to value
and essentials
93%
of consumers have
changed stores,
brands or the way
they shop
3. Shock to
loyalty
72%
of KSA consumers are
not yet resuming
“normal” out-of-home
activities
4. Homebody
economy
2. McKinsey & Company 2
Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic.” Bars may not sum to 100% due to rounding.
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
UK
11/9–16
Italy
11/9–16
Brazil
11/9–16
France
11/9–16
7 13 12 15 18
31 33 37 33
26
31 40
46 51
53
59
52 54 52 60
72
62 58
41 38 33
23 17 13 11 7
2
USA
2
KSA
US
11/9–13
Japan
11/9–15
India
11/9–20
China
11/9–22
Unsure: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
Pessimistic: COVID-19 will
have lasting impact on the
economy and show regression/
fall into lengthy recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or
stronger than before COVID-19
Germany
11/9–13
Shift to value and essentials
Saudi consumers are more optimistic about economic recovery, as
compared to consumers in other countries
KSA
1/25–10/2
Mexico
11/9–17
3. McKinsey & Company 3
Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; Survey 6/16–6/18/2020, n = 514; 4/24–4/29/2020, n = 508; 4/3–4/6/2020, n = 510; 3/23–3/26/2020, n = 510,
sampled and weighted to match KSA's general population 18+ years
12% 3% 6% 4% 2%
30%
32%
32% 35%
26%
58%
65% 62% 61%
72%
Jun 16-18
Apr 26-29
Mar 23-26 Apr 3-6 Jan 25-Feb 10
Saudi Arabia
Mixed: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression / fall into
lengthy recession
Optimistic: The economy
will rebound within 2–3
months and grow just as
strong as or stronger than
before COVID-19
Shift to value and essentials
Optimism regarding Saudi economic recovery is growing at an even
faster rate than earlier in the pandemic
4. McKinsey & Company 4
1 Q: How long do you believe you need to adjust your routines, given the current COVID-19 situation, before things return back to normal (e.g., government lifts restrictions on events/travel)? Figures may not sum to 100% because of rounding.
2 Q: How long do you believe your personal/household finances will be impacted by the COVID-19 situation? Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
11%
2–3 months 21%
34%
0–1 month
26%
13%
4–6 months
7–12 months
More than one year
14%
29%
21%
16%
More than one year
7–12 months
15%
5%
2–3 months
No impact
0–1 month
4–6 months
Adjustments to routines1
% of respondents
Impact on personal/household finances2
% of respondents
~73%
believe it will take
another 4+ months
before routines can
return to normal, in line
with 45% in the last
pulse survey
~66%
believe their finances will
be impacted for another
4+ months by the
COVID-19 situation, up
from 55% in the last
pulse survey
Shift to value and essentials
Saudi consumers increasingly continue to believe that personal and
financial impacts from COVID-19 will last longer than four more months
5. McKinsey & Company 5
Household income1,2
% of respondents
1 Q: How has the COVID-19 situation affected your (family’s) overall available income, spending, and savings in the past two weeks? Figures may not sum to 100% because of rounding.
2 Q: How do you think your overall available income, spending, and savings may change in the next two weeks? Figures may not sum to 100% because of rounding.
Household spending1,2
% of respondents
January 25–February 10
Household savings1,2
% of respondents
Shift to value and essentials
Reduce slightly / reduce a lot About the same Increase slightly / increase a lot
9%
Past 2 weeks
57%
34%
Past 2 weeks
48%
7%
20%
45%
13%
67%
Next 2 weeks
17%
45%
Next 2 weeks
38%
56%
11%
Past 2 weeks Past 2 weeks
33%
17%
54%
29%
More Saudi consumers report increases in spending, however,
nearly half saw declines in income and savings
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; Survey 6/16–6/18/2020, n = 514, sampled and weighted to match the KSA’s general population 18+ years
23%
Past 2 weeks
42%
35%
33%
Past 2 weeks
34%
33%
22%
59%
19%
Next 2 weeks
June 16–18 January 25–February 10
June 16–18 June 16–18 January 25–February 10
6. McKinsey & Company 6
Change in shopping mindset since COVID-191
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started”; figures
may not sum to 100% because of rounding.
Shift to value and essentials
12%
13%
8%
19%
13%
47%
47%
55%
52%
57%
42%
40%
37%
30%
30%
100%
Looking for ways to save money when shopping
Spending time planning / making lists for shopping trips
Changing to less expensive products to save money
Researching brand and product choices before buying
Becoming more mindful of where I spend my money
Doing less Doing about the same Doing more
Saudis are looking for ways to save money and purchasing
less-expensive products
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
7. McKinsey & Company 7
Expected spending per category over the next two weeks compared to usual1
% of respondents
1 Q: Over the next two weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3 Not included or insufficient sample (n = < 75) in first survey.
4 Based on small subset (n < 100) of sample population.
8
21
28
22
32
31
42
32
44
42
17
12
17
28
47
30
22
12
22
19
19
17
15
13
18
34
25
17
15
Accessories
Tobacco products
Groceries
Alcoholic beverages
Snacks
Food takeout & delivery
N/A
Quick-service restaurant
Restaurant
10
Footwear
Personal-care products
Apparel
Jewelry
Non-food child products
Household supplies
Skin care & makeup
Furnishing & appliances
Decrease
Stay the same
Increase
18
34
38
47
28
28
35
16
32
28
51
45
54
52
44
25
12
16
14
13
17
16
22
9
16
8
14
14
12
Personal-care services
Fitness & wellness
Books/magazines/newspapers
Travel by car
Entertainment at home
Out-of-home entertainment
Consumer electronics
Pet-care services
Gasoline
N/A
Vehicle purchases
Short-term home rentals
Cruises4
Adventures & tours
International flights
10
Hotel/resort stays
Domestic flights
Net intent2
Net intent2
+22
+1
+22
-32
-16
-1
N/A
-13
-12
-32
-16
-29
-29
+8
-11
-22
-22
-33
-15
-11
-19
+5
N/A
-23
-12
-43
-31
-40
-42
-32
+7
Net intent: Above +1
Net intent: -15 to 0
Net intent: Below -15
Change since
first survey
Change since
first survey
Shift to value and essentials
Spending on essentials remains at or close to pre-COVID-19 levels, but
most discretionary categories are still at -25 to -40 percent net intent
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; 3/23–3/26/2020, n = 510, sampled and weighted to match KSA's general population 18+ years
+1
-15%
-11%
-16%
16%
4%
11%
NA
32%
54%
19%
29%
36%
32%
-5%
8%
19%
N/A3
22%
26%
44%
19%
44%
28%
47%
33%
59%
N/A3
19%
46%
34%
25%
4%
8. McKinsey & Company 8
More people expect to make a greater portion of their purchases
online once the pandemic subsides
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Includes respondents who chose “some online,” “most online,” and “all online.” Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
47
42
53
49
55
52
47
56
67
45
62
56
62
63
68
67
85
74
49
+66
Skin care & makeup
Non-food child products
+63
Groceries
Food takeout & delivery
+71
Snacks
Jewelry
+78
+56
+72
Furnishing & appliances
Footwear
+73
+68
Personal-care products
+60
Alcoholic beverages
Apparel
Household supplies
+71
Books/magazines/newspapers
+82
Consumer electronics
+78
+72
Over-the-counter medicines
+73
+54
Vitamins/supplements
+66
Fitness & wellness
+74
Accessories
Entertainment at home
+61
Tobacco
N/A
+94
Pre-COVID-19 Expected growth after COVID-19
% growth in customers
purchasing category online
36%
35%
34%
34%
33%
30%
28%
28%
23%
20%
17%
17%
16%
15%
15%
11%
10%
6%
0%
N/A
Flight to digital and omnichannel
~10–35%
growth in consumers
who purchase online for
most categories4
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
9. McKinsey & Company 9
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing most or all online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
18
19
21
24
22
23
20
23
17
24
20
20
29
20
24
26
28
32
66
+31
Apparel
Personal-care products +39
+43
+46
+48
Consumer electronics
+42
Skin care & makeup
+42
+43
Snacks
+36
Books/magazines/newspapers
Over-the-counter medicines
Footwear
Groceries
Tobacco
+42
N/A
+34
Jewelry
Furnishing & appliances
+33
Household essentials
Food takeout & delivery
+33
+38
Accessories
Fitness & wellness
+43
+52
Entertainment at Home
+41
+41
Non-food child products
+77
Alcoholic beverages
Vitamins/supplements
Pre-COVID-19 Expected growth after COVID-19
% growth in customers purchasing
category most or all online
186%
108%
106%
95%
92%
89%
84%
83%
82%
73%
70%
66%
65%
62%
60%
56%
55%
29%
17%
0%
~50–110%
growth in consumers who
purchase most or all
online for most
categories4
Many consumers say they plan to shift their shopping almost
completely online
Flight to digital and omnichannel
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
10. McKinsey & Company 10
Have you used or done any of the
following since COVID-19 started1
% of respondents
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
14%
9%
9%
8%
14%
5%
6%
5%
9%
8%
7%
3%
35%
31%
19%
24%
23%
21%
6%
6%
26%
18%
10%
8%
12%
16%
6%
9%
7%
9%
3%
3%
13%
7%
3%
3%
Meal-kit delivery
Restaurant curbside pickup
Grocery delivery
Used a new store/restaurant app
Purchased pre-owned products
Purchased directly from social media
In-store self-checkout
Buy online for in-store pickup
Restaurant delivery
Used deal-finding plug-ins
Quick-serve restaurant drive-thru
Store curbside pickup
Just started using Using more Using same/less Not using
Flight to digital and omnichannel
Saudis have adopted new shopping behaviors during COVID-19,
including grocery delivery and using store or restaurant apps
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
11. McKinsey & Company 11
0
100
69 75
74
61 64
59
1 80
60 62 63 65 66 68
67 73
70 76
71 77
72 83
79 81 85 87
0
50
Restaurant delivery
Grocery delivery
Meal-kit delivery
Quick-serve
restaurant
drive-thru
Buy online for in-store pickup
New store/restaurant app
Deal-finding plug-ins
Purchased from social media
Store curbside pickup
Purchased pre-owned products online
Restaurant curbside pickup
In-store self-checkout
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
User
growth
since
COVID-19
2
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Flight to digital and omnichannel
Many consumers adopted shopping behaviors during COVID-19
that they do not intend to continue after the pandemic subsides
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
Accelerated shifts
Potentially here to stay
Works for now
12. McKinsey & Company 12
Have you used any of the following since COVID-19 started1
% of respondents
The majority of Saudi consumers have adopted a new shopping
behavior during COVID-19
1 Q: Since the coronavirus (COVID-19) situation started (i.e., in the past ~3 months), which of the following have you done? 7% consumers selected “none of these.”
2 “New shopping method” includes curbside pickup and delivery apps.
48%
48%
42%
39%
30%
New shopping method2
Different retailer/store/website
New digital shopping method
Private label/store brand
Different brand
93%
Consumers have tried
a new shopping
behavior
Shock to loyalty
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
13. McKinsey & Company 13
More than 50 percent of consumers cite value and convenience as top
drivers for trying new places to shop
Reason for shopping at a new retailer/store/website in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you shopped from a new retailer/store/website since the coronavirus (COVID-19) situation started. What was the main reason you decided to try this new retailer/store/website? Select up to 3.
29%
27%
26%
24%
41%
24%
22%
18%
10%
22%
10%
8%
17%
Less crowded / has shorter lines
Better quality
Better shipping/delivery costs
Offers good delivery/pickup options
More easily accessible from my home
Can get all the items I need from one place
Better prices/promotions
Better value
Products are in stock
Offers natural/organic options
Supporting local businesses
Cleaner / has better hygiene measures
The company treats its employees well
Convenience
Purpose-driven
Quality/organic
Health/hygiene
Availability
Value
x% Net % of respondents per
category
68%
75%
22%
27%
18%
17%
Shock to loyalty
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
14. McKinsey & Company 14
More than three-fourths of consumers who tried a new brand cite
value as a driver
Reason for trying a new brand in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you tried a new/different brand than what you normally buy. What was the main reason that drove this decision? Select up to 3. “Brand” includes different brand, new private label/store brand.
x% Net % of respondents per
category
Availability 24%
Value 83%
Convenience 20%
Quality/organic 51%
Health/hygiene
Purpose-driven 22%
21%
Shock to loyalty
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
57%
36%
20%
11%
35%
25%
24%
14%
10%
21%
20%
Supporting local businesses
Better prices/promotions
Products are in stock
Better value
Better shipping/delivery costs
Larger package sizes
Better quality
Is natural/organic
The company treats its employees well
Cleaner / has better hygiene measures
Is available where I’m shopping
15. McKinsey & Company 15
Consumers buying based on company behavior1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Figures may not sum to 100% because of rounding.
Consumers are paying increased attention to hygienic packaging
and how companies treat their employees
10%
13%
12%
12%
14%
51%
51%
55%
61%
59%
39%
36%
33%
27%
26%
Sustainable/eco-friendly products
100%
How companies take care of the safety of their employees
Healthy and hygienic packaging
Company’s purpose/values
Retailers promotion of sustainable solutions
Doing less
Doing more
Doing about the same
Shock to loyalty
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
16. McKinsey & Company 16
Milestones for the Saudi population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
More consumers are engaging in ‘normal’ out-of-home activities now,
but most consumers are still waiting for restrictions to be lifted
1 Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already participating in these activities and those who do not deem any of these items important.
Figures may not sum to 100% because of rounding.
47
9
44
Government lifts
restrictions + other
requirement
Only once there’s a
vaccine or treatment
Government lifts restrictions
Medical authorities deem safe 16%
Stores, restaurants, and other indoor
places start taking safety measures 12%
I see other people returning 5%
Government lifts restrictions and…
72%
are not
engaging in
“normal” out-of-
home activities,
down from 94%
Homebody economy
~7%
will not engage in
“normal” out-of-home
activities until there
is a vaccine or
treatment, down
from 15%
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
17. McKinsey & Company 17
Saudi consumers most concerned about activities such as clothing
rental, using public transportation, and attending large events
Consumers’ level of concern undertaking various activities1
% of respondents
1 Q: How worried would you be if you were to do the following activities in the next two weeks? Possible answers: “not worried at all”; “not very worried”; “somewhat worried”; “very worried”; “extremely worried.”; figures may not sum to 100%
because of rounding.
2 Level of concern is calculated by subtracting the % of respondents stating they “not worried at all” and “not very worried” from “very worried” and “extremely worried.”
Level of concern2
42
41
37
28
29
23
23
22
13
8
21
14
9
0
-5
-12
-7
-19
44%
37%
32%
33%
31%
28%
29%
29%
26%
24%
25%
23%
22%
22%
18%
22%
18%
17%
16%
31%
37%
43%
40%
39%
40%
34%
34%
34%
38%
28%
33%
33%
33%
36%
27%
28%
26%
26%
25%
26%
25%
28%
31%
33%
37%
38%
40%
38%
47%
45%
45%
45%
46%
51%
55%
57%
58%
Drive more than 2 hours from home
Shop for groceries/necessities
Shop for non-necessities
Rent a short-term home
Work outside my home
Get together with family
Go out for family entertainment
Somewhat worried
Go to a shopping mall
Stay in a hotel
Dine at a restaurant
Travel by airplane
Get together with friends
Go to the gym or fitness studio
Use ride-sharing service
Go to a hair or nail salon
Attend a large event
Visit a crowded outdoor public place
Use public transportation
Use a clothing rental service
Worried
Not worried
Homebody economy
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
5
18. McKinsey & Company 18
Protective measures and sanitization are most important to consumers
as they decide where to shop in-store
Top priorities when deciding where to shop in-store1
% of respondents for whom this criterion is the most important2
1 Q: Once restrictions lift, which of the following factors will be most important to you as you decide which of these places to visit in person? Respondents were asked to select the most important.
2 The following categories are included in each bucket: Cleaning and sanitization—increased cleaning, improved air filtration, availability of sanitizing supplies throughout the store; Health checks—customer wellness check (e.g., temperature) on
entry, employees' wellness check (e.g., temperature) on entry; Masks and barriers—customers and employees wear masks, customers and employees provided masks and gloves, plastic barrier with cashier; No-contact purchasing—curbside
pick-up, cashier-less checkout, no-contact delivery, buy online for pickup in store; Physical distancing—customer number limit, distancing in customer line, reduced employee activity during shopping hours; Store regulations—no customer product
testing, one-way store aisles, special hours for high-risk shoppers.
Homebody economy
Change since the
first measure,
percentage point
+9
-7
+2
-1
-1
-1
23%
21%
18%
18%
13%
8%
No-contact purchasing
Health checks
Cleaning and sanitization
Masks and barriers
Store regulations
Physical distancing
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
19. McKinsey & Company 19
Saudis intend to maintain their current level of engagement with
out-of-home activities for the next two weeks
Consumers’ engagement with activities outside home1,2
% of respondents
1 Q: Did you leave your house for the following activities over the past two weeks? Chart represents the percentage of respondents who indicated that they left home at least once during the past week to do this activity.
2 Q: For which of the following activities do you intend to leave your home to do in the next two weeks? Chart represents % of respondents who intend to leave their home to do this activity during the next two weeks.
76%
61%
57%
45%
47%
42%
45%
36%
35%
33%
30%
31%
23%
23%
22%
Past 2 weeks Next 2 weeks
There is a strong
correlation between
concern in participating
in a particular out-of-
home activity and
intent to participate
(R2~0.9), suggesting that
out-of-home activity
engagement is driven by
individuals’ level of
concern with the activity
Homebody economy
81%
63%
59%
48%
48%
47%
40%
37%
34%
33%
31%
27%
19%
19%
16%
Drive more than 2 hours away from home
Dine at a restaurant
Get together with family
Shop for groceries/necessities
Work outside my home
Go out for family entertainment
Attend a large event
Shop for non-necessities
Visit a crowded outdoor public place
Get together with friends
Go to a hair or nail salon
Use ride-sharing service
Go to the gym or fitness studio
Travel by airplane
Travel on public transportation
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
20. McKinsey & Company 20
26%
22%
52%
Feel unsafe
Somewhat
unsafe
Feel safe
Top activities eager to get back to1
% of respondents for whom the activity is in their top 3 choices
Get together with friends
35%
32%
Travel by airplane
Get together with family
34%
32%
Go out for family entertainment
30%
Dine at a restaurant
24%
Visit a crowded outdoor public place
21%
Interact with coworkers in person
21%
17%
17%
Go to gym or fitness studio
Go to a hair or nail salon
Shop for non-necessities
at shopping mall/department store
17%
Attend a concert, sporting event, movies, etc.
Saudis are most eager to return to air travel, getting together with
friends and family, and going out for entertainment
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
Level of comfort with out-of-home
activities, % of respondents
1 Q: What best describes your comfort participating in activities you did prior to COVID? Figures may not sum to 100% because of rounding.
2 Q: What best describes your comfort participating in activities you did prior to COVID? If answered somewhat unsafe or unsafe, Q: Which of the following activities are you most eager to get back to on a regular basis? Select up to 3.
Homebody economy
21. McKinsey & Company 21
Saudis have acquired at-home alternatives to out-of-home
activities, such as remote learning and videoconferencing
12%
12%
9%
6%
5%
4%
6%
4%
4%
21%
10%
8%
8%
13%
11%
29%
24%
18%
18%
15%
11%
10%
8%
6%
5%
44%
22%
18%
16%
38%
23%
10%
9%
16%
22%
15%
7%
9%
2%
4%
3%
9%
8%
6%
9%
10%
8%
TikTok
Playing online games
Online streaming
Remote learning: my children
Telemedicine: physical
Social media
Wellness app
2%
Telemedicine: mental
Remote learning: myself
Videoconferencing: professional
Watching e-sports
Cooked regularly for myself/my family
Video chat: personal
Digital exercise machine
Personal care/grooming at home
Online fitness
Not using Using less / the same Using more Just started using
Have you used or done any of the
following since COVID-19 started1
% of respondents
Intent to
continue,2 %
69%
53%
69%
66%
58%
80%
79%
73%
53%
67%
63%
83%
69%
54%
55%
66%
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “ will increase this” among new or increased users.
Homebody economy
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
22. McKinsey & Company 22
User
growth
since
COVID-19
2
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Online streaming, fitness, and wellness habits adopted during the
pandemic are likely to remain in the medium to long term
Homebody economy
75
70
100
60
150
0 65
55 80 81 82 83
200
0
50
Personal care/grooming at home
Watching e-sports
Used social media
Remote learning: myself
Videoconferencing: professional
Online streaming
Telemedicine: physical
Online fitness
Telemedicine: mental
Playing online games
Remote learning: my children
Video chat: personal
Cooked regularly
Wellness app
TikTok Digital exercise machine
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
Works for now
Accelerated shifts
Potentially here to stay
23. McKinsey & Company 23
Delivery and video-chat activities, including remote learning, continue
to grow among Saudi consumers
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
3 Change since first survey is calculated by dividing the difference in % new / increase users between Sep’19 and Apr’19 by the Apr’19 figure
Have you started/increased usage since COVID-19 started1,2
% of respondents
46
46
40
34
32
30
39
33
30
30
9
9
31
25
24
19
17
8
Grocery delivery
TikTok
Restaurant delivery
Remote learning: my children
Remote learning: myself
Video chat: personal
Videoconferencing: professional
Online streaming
Buy online for in-store pickup
Quick-serve restaurant drive-thru
In-store self-checkout
Store curbside pickup
Restaurant curbside pickup
Playing online games
Watching e-sports
Online fitness
Wellness app
Telemedicine: mental
Change since
April survey,3 %
New/increased users
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529; 4/3–4/6/2020, n = 510, sampled and weighted to match the US general population 18+ years
24%
N/A
N/A
N/A
N/A
62%
-2%
3%
17%
6%
77%
N/A
-38%
24%
-14%
3%
-2%
116%
Homebody economy
24. McKinsey & Company 24
14
83
Hybrid
100
3
Online only
In-person only
1 Q: What education format is your child/children’s school primarily using today? Figures may not sum to 100% because of rounding.
2 Q: Please indicate how strongly you agree or disagree with each of the following statements. Statements include: “I expect remote learning to be a key education format for formal and/or informal education for the next 3 months”, “Given
the uncertainty of school openings, I am planning to spend more on at-home learning tools and equipment (e.g., tutoring services, desk equipment, electronics)”, “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from strongly disagree to 6 strongly agree. Figures may not sum to 100% because of rounding.
Remote learning is widespread and families expect it to continue;
many are making accommodations for it
Education format1
% of respondents
Homebody economy
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
56
43
33
Invest in at-home
learning tools
Expect online to
continue for 3+ months
Agree/Strongly agree
Reduce work hours
Change in beliefs/behaviors for those with children in remote
learning,2 % of respondents
~97%
of children in
some form of
remote learning
25. McKinsey & Company 25
1 Q: Please indicate how strongly you agree or disagree with each of the following statements: “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from strongly disagree to 6 strongly agree. Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 KSA Consumer Pulse Survey 1/25–2/10/2021, n = 529, sampled and weighted to match the KSA’s general population 18+ years
38
Overall
Less USD 50K
USD 50-100K
Agree/Strongly agree
More than
USD 100K
33
33
40
Reduction in work hours for those with children in remote learning1
% of respondents, annual salary in USD
One-third of families with children have reduced their work hours
to meet at-home learning needs
Homebody economy
40%
of high-income
families have reduced
work hours
26. McKinsey & Company 26
Disclaimer
McKinsey does not provide legal, medical, or other regulated advice or
guarantee results. These materials reflect general insight and best practice
based on information currently available and do not contain all of the
information needed to determine a future course of action. Such information
has not been generated or independently verified by McKinsey and is
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Notas do Editor
% who started using/increased usage that intend to continue