Optimism Surrounds Consumer Spending in Southeast Asia this Ramadan: InMobi Report

As a region home to millions of Muslim residents, the trajectory of shopping is expected to skyrocket this year with a noticeable shift towards online shopping

23 February 2022, Singapore – InMobi, a leading provider of content, marketing, and monetization technologies that help businesses fuel growth, released today the findings of the Gearing up for Ramadan 2022 report. Designed to support brands in fine-tuning their mobile marketing strategies for the Ramadan month, the report analyses the habits and expectations of Southeast Asian consumers surrounding their shopping experience during the holy month, particularly in the Indonesian and Malaysian markets that have a substantial Muslim majority. 

The month of Ramadan is one of the holiest and most important religious observances for Muslims around the world. With Indonesia hosting the largest Muslim population in the world1 and Malaysia having approximately three-fifths of its population2 being Muslim, the Southeast Asian region observes Ramadan on a large scale. The variety of festive practices during Ramadan, ranging from food shopping for iftar (the evening meal that breaks the Ramadan fast) to apparel and gift hamper purchases, usually stimulates greater spending among the populace. 

Insights from the InMobi report reveal consumer sentiment in Indonesia and Malaysia to be more positive in 2022. The levels of optimism, however, slightly different between these markets as Indonesia shows higher optimism with 56% of respondents planning to spend at least IDR2 million for Ramadan this year, up from 48% in 2021 – whereas Malaysia still retains a pragmatic outlook as less than half (46%) are willing to spend over RM600.  

Additionally, both markets display different peak timings when it comes to shopping activity during Ramadan. In Malaysia, shopping activity will peak at the very beginning of the month with 67% of respondents confirming that they would have completed their purchases by the time Ramadan begins. In Indonesia, Ramadan shopping will similarly peak in the first week of the month, but 84% of Indonesians will have completed their purchases only a week before the Eid Al-Fitr celebrations begin after Ramadan. 

Nonetheless, the report also highlights a clear common shift in online and offline shopping budgets between the Malaysian and Indonesian markets. In Malaysia, 39% will increase their online budgets and 45% will reduce offline spending while in Indonesia, 31% will increase their online budgets and 50% will reduce offline spending.   

“The holy month of Ramadan is held in the highest regard by Muslim communities. Especially with movement restrictions significantly declining this year in both Indonesia and Malaysia, many Muslims in Southeast Asia will find themselves poised for an extra festive Ramadan, albeit with some cautionary practices still in place,” said Rishi Bedi, VP and GM, Southeast Asia, Japan, and Korea at InMobi. “Health and safety concerns remain paramount, which are also a key driver of online shopping and reduced offline shopping. However, there is still a balanced market for both, so marketers must proactively innovate strategies that cover the entire path-to-purchase to attract the right audiences.” 

The report shares additional insights on consumer preferences for in-store shopping and mobile shopping during the Ramadan season. The report dives into the shopping habits of the digitally native Generation Z (Gen Z) in Indonesia and highlights the dynamic purchasing behaviour of Malaysian mothers, the purchase leaders of most Malaysian households:  

• Naming the top reason for shopping on mobile, 63% of Indonesian respondents cited access to app-exclusive discounts and 58% of Malaysian respondents cited the value of convenience 
• The biggest concern for offline shopping is in-store sanitization standards for Indonesian respondents (51%) and social distancing practices for Malaysian respondents (50%). 
• 58% of Indonesia’s Gen Z shoppers and 42% of Malaysian mothers will make their purchases by the start of Ramadan, with both more inclined to shop on mobile 
• 41% of Gen Z respondents in Indonesia are likely to travel for leisure for the Raya holidays, compared to 31% of Indonesians in other age groups  
• 18% of Malaysians express interest in travel during this Ramadan, down from 39% in 2021 
• Malaysian mothers (50%) are more willing than the average Malaysian (46%) to spend over RM600 

To read more about the Gearing up for Ramadan 2022 report, visit https://go.inmobi.com/sea-ramadan-2022. 

About InMobi 

InMobi is a leading provider of marketing and monetization technologies reaching more than a billion consumers around the globe. With deep expertise and unique reach in mobile, it is the trusted and transparent technology partner for marketers, content creators, and businesses of all kinds. InMobi’s mission is to power its customers’ growth by helping them engage their audiences and build meaningful connections. Its affiliated businesses – Glance, the world’s leading lock screen-based content discovery platform and video platform Roposo – help InMobi create new content and commerce experiences in a world of connected devices. Headquartered in Singapore, InMobi maintains a large presence in San Francisco, Bangalore, New York, Chicago, Kansas City, Delhi, Mumbai, Beijing, Shanghai, Jakarta, Singapore, Metro Manila, Kuala Lumpur, Sydney, Melbourne, Seoul, Tokyo, London, and Dubai. To learn more, visit https://www.inmobi.com/.