Dubai, United Arab Emirates — Global ecommerce accelerator Pattern, has just released UAE’s Ecommerce Consumer Price Index (ECPI) for the first quarter of 2023. The data analysis shows that the prices of a typical basket of consumer goods increased at a much slower rate in comparison to other markets.
The report looked at the data and price indices of a number of products ranging from flour, tea, and rice to personal care products and household detergents and soaps. The data science team at Pattern used this data set to build Pattern’s UAE Ecommerce Consumer Price Index (ECPI) by analysing daily pricing data since the beginning of 2022 for the most common purchases on a regular basis by households in the UAE.
Global inflation has proven to be one of the most pressing challenges for businesses and consumers alike since the beginning of the COVID-19 pandemic. Increasing costs have been commonplace in both Europe and North America, and the Middle East has been no exception. However, while some product prices have been on the rise, there are many products that have decreased or maintained figures close to their rates in Q1 of 2022. Key findings include:
Food and beverage
Tea has seen the most significant rise, up 26% over the last year. Conversely, the increase in the price of coffee has been more moderate, up 4% over the same period. While the price of flour is up 16% over the past year, the price only increased 2% over the last three months. Similarly, the price of milk only increased 3% during the past quarter, while rice hasn’t increased in price at all during the same period—despite milk and rice being up in price 4% and 3% since 2022.
Personal care
The price of personal care products in the UAE have risen compared to 2022—with the cost of lotion, deodorant, and soap increasing by 22%, 19%, and 10%, respectively. Still, the price increases of some products, such as lotion and deodorant, have slowed over the past quarter. In fact, the price of soap is beginning to drop, down by -7% over the past three months.
Household products
Household consumables such as laundry detergent, tissues, and dish soap are up 18%, 11%, and 12%, respectively, over the past year. However, the price of washing up liquid has levelled off over the past quarter, up only 1% during the past three months.
“Pattern’s new Ecommerce Consumer Price Index shows what a turbulent time the last twelve months have been for brands and consumers alike,” explains Pattern’s MENA General Manager, David Quaife.
“Supply chain disruptions—coupled with increased costs of materials, labour, shipping, and more—have made it increasingly difficult for brands to navigate pricing strategy without a real-time window into the competitive landscape. Similarly, consumers continue to experience pain at the point of purchase as they navigate the increased price of many goods. It is our hope that this quarterly index will shed light on these shifts to better inform brands and consumers alike on where the average prices of some of the most commonly purchased products in the market are headed.”
While inflation has driven up the cost of most products across the global consumer landscape, the rate of inflation is decelerating in the UAE for many of the fast-moving consumer goods sold online. The trend is expected to continue in the second quarter of 2023 and may offer some relief for online consumers in the nation.
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Methodology
The data powering Pattern’s ecommerce acceleration platform leverages 27 trillion historical data points—including pricing data for over 300 million products across thousands of sites online. The data science team at Pattern used this data set to build Pattern’s UAE Ecommerce Consumer Price Index (ECPI) by analysing daily pricing data since the beginning of 2022 for the most popular goods in the product categories most commonly purchased on a regular basis by households in the UAE.
About Pattern
Pattern is the category leader for global ecommerce and marketplace acceleration. Since its founding in 2013, Pattern has profitably grown to more than 1,400 employees operating from 24 global locations—including Dubai, London, and Munich. Hundreds of global brands depend on Pattern’s ecommerce acceleration platform every day to drive profitable revenue growth on D2C websites and across hundreds of global marketplaces—including Amazon, Noon, Tmall, JD.com, and eBay.
Pattern manages every aspect of a brand’s marketplace presence while providing actionable data, transparency, and real-time visibility of key success metrics. Unlike other trade partners in the region, Pattern leverages a stock-buy model that creates uniquely aligned incentives and synergies that are proven to drive accelerated growth. Unlike an agency, Pattern purchases stock from its brand partners. When brands sign up to work with Pattern, we pay them.
In addition, Pattern’s consulting team helps brands overcome strategic ecommerce challenges, including a data-science based approach that identifies where to play and which markets a brand should expand to online. To learn more, visit ae.pattern.com or email us at mena@pattern.com
For more information, visit www.pattern.com/mena or please contact our representatives below:
Houri Elmayan
UAE PR Representative
Houri@prwonderland.com