Shopper behaviour in 2025 looks very different from just a few years ago.
Across the UAE, consumers are becoming more selective with how and where they spend. Rising living costs, global uncertainty, and a stronger focus on value have changed purchasing priorities. Businesses, in turn, are taking a more cautious approach, carefully weighing every investment and marketing decision.
We’ve moved beyond the post-pandemic “new normal” into a phase where financial awareness defines consumer behaviour. Shoppers are prioritising what they truly need rather than what they simply want. The days of impulse spending are being replaced by thoughtful choices and value-driven decisions.
Customers are finding creative ways to make their dirhams go further. Many are switching to private-label products, exploring flexible payment options such as Tabby and Tamara, and embracing the second-hand economy through local resale apps and community marketplaces. Sustainability is also playing a larger role, with more people choosing to repair, reuse, or upcycle rather than buy new.
So, how can brands in the UAE adapt to this changing landscape? The key lies in aligning your business goals with customer realities and understanding what matters most to them today and responding with relevance, authenticity, and value at every stage of their journey.
The shift in consumer mindset is no longer emerging; it’s here. Across the UAE, shoppers are focusing on practicality, choosing essentials over extras and reliability over novelty. While premium spending still exists, it is now more deliberate, tied to long-term value rather than impulse.
Consumers are making smarter trade-offs, whether that means choosing a staycation instead of an international trip, delaying upgrades on electronics, or opting for trusted, value-driven brands over luxury splurges. Even within higher-income households, spending decisions are more considered, with a growing interest in sustainable purchases and flexible payment options.
This “need to have” mentality is shaping the next wave of brand loyalty. Businesses that recognise this shift and align their messaging, pricing, and customer experience accordingly are the ones that will continue to thrive
In a significant market shift, over one third (38%) of consumers are now willing to abandon well-known brands for more affordable supermarket value ranges. An additional 19% plan to make this switch in 2024 if they haven’t already, while 28% are considering it. Altogether, this could mean a staggering 85% of consumers may move away from traditional household names in favour of budget-friendly alternatives.
Shopping habits and payment preferences have drastically changed; consumers are increasingly reluctant to spend their cash upfront. The “Buy Now, Pay Later” model has surged in popularity, becoming a major trend in 2024. In the UK alone, 36% of the population, or over 19 million people—a 5 million increase since 2022—have adopted this payment method.
Notably, 55% of millennials are utilising Buy Now, Pay Later services, particularly within the fashion industry. While it may appear to be a handy option to help spread the cost of purchases, it has created a demographic with much less financial stability – one that businesses aren’t necessarily keen to engage with.
A few years ago, it would be fair to say there was still a certain amount of negative stigma around buying second-hand goods. But that sentiment has changed, quickly and dramatically.
In 2023, Amazon reported a 15% increase in second-hand goods sales, generating more than £1 billion (around AED 4.7 billion) in revenue across the UK and Europe. Similarly, eBay saw a 20% rise in second-hand fashion purchases, while listings for second-hand furniture grew by 140%.
Platforms such as Depop and Vinted have also seen major growth, with Vinted’s sales increasing by 51% year on year. Globally, the second-hand market is now worth approximately £354 billion (around AED 1.66 trillion), with second-hand clothing alone accounting for £177 billion (around AED 830 billion). This segment is expected to almost double in size by 2027, expanding nearly three times faster than the overall second-hand market.
So, what does this tell us? Consumers still want to look nice, dress nice, feel good and enjoy luxury products, they simply don’t want to, nor can they afford to pay luxury prices.
At Verkeer, we work with a diverse range of clients, who in turn work with a wide range of consumers across a multitude of industries. From our experience, we’ve pulled 4 of our top DOs and DON’Ts that we recommend brands adopt if they want to remain successful when navigating the new world of customer journeys:
Fundamentally, the factors driving the traditional sales funnel are largely unchanged except for one key area. Something brand have never had to face before.
The digital era has opened up numerous opportunities to engage more frequently with our audience. However, it also introduces multiple potential drop-off points where consumers might disengage. Today’s consumers might ignore ads deliberately, procrastinate over decisions, switch to competing brands, or become discouraged by unexpected costs.
As a result, the likelihood of a customer dropping out of a purchase decision high sky-rocketed. It’s a double-edged sword that requires flexible strategies that will help increase engagement and effectively combat these key drop-off factors.
There are a few tried and tested ways that you can adopt to help shimmy your customers down the funnel and keep them loyal to your brand for longer.
Did you know that acquiring a new customer can cost 5x more than retaining an existing one?
So, how do you maintain your customer base effectively? Key strategies include:
Showing your existing customers they matter plays a HUGE roll in strengthening their loyalty and encouraging them to engage long-term.
Humans love stories. They entertain us, inform us and connect us. So it’s no surprise that communicating your brand messages through stories is 22 times more memorable than just relaying facts. To make your messages resonate deeply with your customers, here’s how you can craft them effectively::.
There’s an interesting disparity in what brands want to do vs. what consumers think they should do right now when it comes to their marketing spend. 85% of consumers think that brands should cut down on their marketing spending to help tackle rising costs, passing the savings back to them. However, over 40% of UK firms claim they expect to increase their marketing spend this year.
So what is the solution?
Some practical things that you can do to show your empathetic to your customers and their financial situations include:
Navigating the new world of customer journeys takes a little finesse. Brands cannot expect to stick to pre-pandemic tactics, in a world that is very different to what it once was. Consumers values and priorities have changed. The economy has shifted us from a population focused on what we want, to now prioritising what we need.
So, what are the three things’ brands need to survive?
Adaptability. Empathy. Transparency.
Unsure how to shift your business strategy to speak your customers’ language? We can help.
Get in touch today and let’s chat about how we at Verkeer can work our magic on your brand.