This Study Reveals Car Buying Habits of UAE, KSA and Kuwait Locals
The Global Auto Shopper Study is a means of uncovering the trends and patterns behind automobile purchase in various countries around the world. The ninth version of this study was conducted by the renowned firm 'Kantar TNS' and commissioned by Google. The 9th study covers a total of 27 countries, including Kuwait, the United Arab Emirates (UAE), and the Kingdom of Saudi Arabia (KSA).
The study reveals that like most things, the process of buying cars has also become digitalized. A growing number of people rely on the internet while purchasing new vehicles, instead of relying on dealerships and auto shops. Buyers, today, are swayed by the never-ending content available on the digital media while making their decision.
Once their digital search ends, they finally enter the dealership only to ask a series of questions that even leave the most experienced salesperson scratching their heads. It is a sign that car manufacturers and dealerships need to change their approach to capture customers. They need to step outside their comfort zone and step foot inside the digital world as it is where the modern customer begins his car buying journey.
The article, based on the ninth Global Auto Shopper Study, will walk you through the car buying habits of the people residing in the UAE, KSA, and Kuwait.
How Does the Car Buying Journey Begin?
Despite the technological innovations and access to more information, the car buying process for people remains very complicated. The reason is that individuals have varied needs, and one car cannot meet the needs of all individuals. Budgetary constraints, brand preference, usability etc. are other factors which need to be considered as well.Moreover, auto manufacturers need to compete with each other for customers.
Therefore, they need precise information on how to capture customers. According to the Study, a growing number of people have started to utilize search engines (such as Google, Yahoo, Bing, etc.) to obtain information regarding vehicles. For example, 57% of buyers in KSA and 44% in UAE first search on search enginesas part of their preliminary research.
How Long Does It Take to Buy A Car?
Surprisingly, most new car buyers buy their first car in a short period; two months to be exact. Therefore, it brings about more pressure on auto manufacturers to get their brand known to potential customers and try to get them to buy their cars. In Kuwait, 71% of car buyers buy their cars within two months, while in the UAE and KSA it is 68% and 83% respectively.
What Role Do Smartphones Play?
Smartphones have changed the way buyers make most of their decisions in today’s world. They rely on online reviews and content to make their decision. Before buying their new cars, 91% of people in the KSA searched their new vehicle on their smartphones first. Likewise, 90% in the UAE and a staggering 97% in Kuwait.
Customization
Another thing that a growing number of buyers look forward to are customizations, such as online car configurators. Instead of performing a test drive or physically inspecting the vehicle, buyers use such customization features to finalize their car.The percentage of people buying cars without a test drive is 37% in the KSA, 12% in UAE and 9% in Kuwait.The number of people using configurators is 70% in the UAE and 81% in KSA.
Importance of Graphical Content
For buyers, videos and other graphical content are a critical source of information. After their research on search engines, buyers turn to videos the most. 85% of people in KSA, 81% in UAE and 86% in Kuwait search for videos related to their dream cars.The videos that these buyers search for are related to technological features about the vehicle, safety, and consumer reviews etc.
One website that buyers value the most for videos is YouTube. 96% of buyers in KSA, 86% in Kuwait, and 82% in UAE consider YouTube as a reliable source of information.Brands need to understand that presence on digital media is necessary.
91% of those surveyed in the KSA and 74% in the UAE remarked that online videos introduced them to new brands and cars, which were unknown to them.84% in Kuwait said that online videos positively influenced their mind towards a particular car or brand.Many people use videos to narrow down their list of potential vehicles – 71% in KSA and 75% in UAE.
Dealers in the Digital Age
The role of dealerships has not diminished in the digital age. However, the way people approach the dealerships has drastically changed. Buyers today search for dealerships online. 79% of buyers in KSA found their dealerships through online research, and 66% in the UAE.
Although logic dictates that people would purchase things from people they already know, the digital age is much less uncertain. Surprisingly, 54% of buyers in UAE, 51% in Kuwait, and 41% in Kuwait bought cars from dealers they had no prior relationship with.
Online Buying
Perhaps the most startling information that this study presents is that 67% of buyers in KSA and 42% in UAE would opt to buy their cars online if provided with the option. It shows that for many consumers, the physical experience is not as relevant as it was before.
Conclusion
The study shows that how much relevant digital media has become in all aspects of life. Instead of relying on traditional marketing techniques, auto manufacturers and dealerships need to tap into the to the digital media to market themselves to consumers. It will help them to reach to more consumers and gain a more significant market share.