JWT’s AnxietyIndex is designed as a place to discuss how brands and consumers are responding to the global recession. With daily content updates, AnxietyIndex.com includes contributions from around JWT’s network, offering a truly global perspective.
It was a bit shocking to see that Saudi Arabia is the third most anxious country among the 13 that JWT has surveyed since February 2009. (See the Trends and Research page for a full listing of reports.) According to JWT’s October 2009 AnxietyIndex survey of 484 Saudi adults, our nation’s anxieties are centered around unemployment and health.
While Saudi Arabia is one of the world’s richest countries, people have been very worked up about the high rate of unemployment—young men aren’t able to find jobs with salaries that keep up with the cost of living and social expectation, and women find it difficult to compete with men for jobs due to social constraints. The Saudi stock market crashed before the global recession, which has affected many companies here; hiring freezes are prevalent.
It was less surprising, however, to see health and disease register as a major driver of anxiety among Saudis. Although health care is free for all Saudi nationals, the system is very slow, and many people go to costly private hospitals. That said, at least we aren’t upset about the price of gas.
In a country with a melting pot of cultures—local citizens make up only around 20 percent of the population—anxieties vary greatly among residents. Since locals have the security of strong government support (free education, health care and assisted housing loans), it’s not surprising that anxiety levels for Middle Eastern expats are higher across all areas of concern.
According to our most recent AnxietyIndex survey of 503 adults conducted in October and November 2009, the greatest source of angst in the UAE is economic and financial, as the nation saw drastic layoffs and organizational restructuring starting in the second half of 2008. After the collapse of the real estate market, the inflated cost of living did not drop fast enough to reflect the end of the period of speculation, placing purchasing power and family security high on the list of anxiety drivers.
Middle Eastern expats are concerned about a shift in societal values, health issues (we saw a surge in health advertising and psychological advice) and the rising unemployment rate. Locals are not as concerned about societal values, as theirs are preserved within a close-knit community. Interestingly, for a nation criticized for its lack of environmental care, locals’ major concerns revolve around the impact of global warming and food prices.
The outlook for the next six months is pessimistic, with anxiety centered around the cost of living and food prices. Job security, however, is expected to improve.
Click here to download the full UAE AnxietyIndex report from the Trends and Research page.
In our spring AnxietyIndex Quarterly report “The Genericizing of Brands” (downloadable from our Trends and Research section), we argue that tactics must be approached in a branded way—that brands must find a unique value voice. A recent Wendy’s commercial for the Deluxe Value Meal is a good example of that.
The commercial, a part of the fast food chain’s “You Know When It’s Real” campaign, shows two guys eating a burger combo meal. But while one has only a tiny plastic burger, fries and soda, the other is eating a real and satisfying lunch from Wendy’s. The man with the miniature version notes that his meal cost just $2.99, only to hear that the other guy paid the same low price.
In a downturn, consumers tend to search for smaller, cheaper options, and in response, most brands target price-driven consumers with basic offers, usually inferior alternatives to the “real thing.” Using an absurdist comparative approach, Wendy’s assures consumers that it’s not among those promising “less for less” and that customers need not make sacrifices in order to save.
Migdal Ohr is an organization that provides education and “social guidance” for Israeli kids from underprivileged or troubled backgrounds. With competition for donations particularly stiff in this downturn, it has found a unique approach to attract attention: While most communications for nonprofits focus on the importance of the cause and how the donation will help the needy, this campaign is about how the donation will affect the giver.
Sending the message that anyone can be a philanthropist, a humorous series of newspaper ads titled “Find the fairy godmother in you” shows unlikely types—a mechanic, a biker and a soccer fan—with fairy wings and a magic wand. Instead of asking the public for help, Migdal Ohr is helping the public by empowering just about anybody to express their inner angel.
Looking back on the recession and marketing in Saudi Arabia this year, we’ve seen brands shift from mass generic communication to more targeted advertising. Some brands have been trying to create more value. And for the first time in a while, we’ve seen brands going the extra mile to communicate discounts or value products, which used to be shunned by the cash-laden Saudi.
Two recent examples of this are Wafrah, a brand that has been focusing solely on marketing affordable products (its name translates as “save”), and Petromine, a motor oil brand offering 50 liters of gasoline free with an oil change.
But not enough brands here have directly addressed consumer anxieties, and most remain unconvinced that they need to focus on championing value. In the end, they just keep talking about how premium their product is while ignoring what people are feeling and an opportunity to really connect with their consumers.
In Saudi Arabia, people freak out about their phone bills. Some consumers must choose between going out and paying their phone bill, which is possibly the most complained about financial obligation in the country.
So Saudi Telecom came up with a promotion to help alleviate some of this anxiety: It is offering a month of free calls for post-paid subscribers and anyone who switches to Saudi Telecom. Timed around the religious holiday of Eid, the offer was a holiday gift of sorts for the brand’s customers.
As in much of the rest of the world, the UAE’s luxury sector has been the hardest hit segment of retail, as consumers save more and focus on necessities. Luxury purchases are now looked at as long-term investments—which makes one question whether today’s price-sensitive consumers will go for short-term emotional satisfaction at a not-so-cheap cost.
Still, as we previous noted, a “rental economy” seems to make sense at a time of prevailing uncertainty, when consumers are cautious about long-term financial commitments and the appeal of ownership is waning. Indeed, Rent the Runway, a new venture in the U.S., is betting that this idea will work with designer dresses. It will be interesting to see if copycats again pop up around the world or if cooperative consumption—as we’ve previously dubbed this business model—has its limits.
National Bonds Corp. in Dubai has launched a “Save for Life” promotion in an effort to change people’s attitudes toward saving. (NBC, described as the National Saving Scheme of the UAE, is a three-year-old joint stock shareholding company in which the government of Dubai holds a 50 percent stake.) A Mercedes is given away in each weekly drawing—taking place from October through December—for customers with holdings of at least 3,000 AED (about $800); those with 10,000 AED (about $2,700) or more are eligible for a weekly prize of 1 million AED.
At the end of the promotion, a grand prize drawing (open to customers holding at least 25,000 AED) will give away a furnished two-bedroom apartment, a Mercedes and 1 million AED.
It’s hard to imagine that these incentives will ultimately lead to a life-long savings habit or culture. Most people just need to be educated on managing their money. In Dubai, most of the expats are simply there to make money—before the recession, rising rents and the glitz and glamour of the city left them little inclined or able to save, and now they’re even less able to do so. But habits are hard to kick, and those who are accustomed to spending will continue doing so, at least to the extent that they can.
Saudi Arabia is very fiscally conservative, and messaging from banks focuses on the careful relationship between the person and his money. The banks are very cautious about who they loan to; earlier this year, our work for HSBC (known locally as SABB) targeted reliable prospects with stable jobs.
Saudis who are on the brink of a new life—recent graduates, new parents, first-time homebuyers—tend to be anxious about how they will secure the funding to fulfill their dreams. A new bank, Al-Inma, is making a revolutionary and risky move, going against the grain by promising loans to the strivers. Its hope-filled message is based around the unique Arabic word “Tafa’al,” which encourages people to be optimistic. Al-Inma is positioning itself as the bank that helps all borrowers achieve their goals, even in hard times, a message that’s been very successful in gaining awareness for the bank.
The recession has undermined the grandiosity of Dubai: Mega-projects have been put on hold, and many of those with “secure” jobs suddenly found themselves on a plane back home. The bubble has burst, leaving those who believed in the sparkle and glamour of the city in shock. But one big project has come to fruition: Dubai’s first metro recently launched, a project that’s not about extravaganza but about something that touches the everyday lives of its residents.
The tagline, “My City, My Metro,” rides perfectly on the atmosphere of pessimism brought about by the downturn, and in a simple and direct way tries to restore feelings of security and belonging to those who have lost it this year. It will take time, healthy economic indicators and a lot of positive publicity to restore trust in this city—but a city as a product has to connect with its “consumers” to give a reason to believe.
While Saudi Arabia is one of the world’s richest countries, people have been very worked up about the high rate of unemployment—young men aren’t able to find jobs with salaries that keep up with the cost of living and social expectation, and women find it difficult to compete with men for jobs due to social constraints. The Saudi stock market crashed before the global recession, which has affected many companies here; hiring freezes are prevalent.
Photo Credit: JWT Israel
Two recent examples of this are 
In Saudi Arabia, people freak out about their phone bills. Some consumers must choose between going out and paying their phone bill, which is possibly the most complained about financial obligation in the country.
