GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Automobile

 
  Share
Kantar TNS report looks at the impact of the recent Royal Decree
Key beneficiary: Small and medium sized vehicle brands such as Toyota, Hyundai, Ford and Nissan amongst the top 5 brands that women aspire to buy, BMW being the aspirational brand in the premium segment.
  • 82 percent of Saudi women intend to get driving license; driving to work as their primary motivation and males are endorsing this change.
  • 60% intend to buy a car in next 3 years; 38 percent in 2018; non-premium, small and medium car segments more in demand
  • Taxi and Uber services to suffer a setback with declining demand for hired transportation
  • The initiative to give boost to retail, entertainment, Food and Beverages sectors
October 10, 2017, Dubai, UAE: To understand the early sentiment of Saudi residents and the likely outcome of the recently issued royal decree that allows women in KSA to drive cars, Kantar TNS – one of the largest global research agencies– conducted a study amongst Saudi residents in partnership with online panel providers Kantar MobiworkX and Borderless Access.
The study highlights that the sentiment is overall positive. Males support the change and would like the female members of their household to drive. As a result, 82% of the women are contemplating on getting a license and this is likely to fuel their ambition. The move is expected to uplift the sentiments of females. The biggest emotions expressed by women were related to the feeling that society was progressing the right way (61%), a sense of empowerment (55%) and enhanced career opportunities (46%).
With more women on the move, their career prospects will dramatically improve and the disposable income of households will rise. It is expected to change the very fabric of Saudi society and impact the economy in the long run.
Commenting on the findings and its implications for marketers, Neal Henriques, Regional Automotive Director for Kantar, said: “This historic decision by the Saudi government changes the automotive landscape in the Kingdom and will present long term economic benefits beyond the automotive industry. Marketers who want to be ahead of the game need to gain a deep understanding of the needs and drivers that will affect female purchase decisions and tailor their offerings accordingly to capitalize on the new opportunity. Our initial research also indicates that the path to purchase will be far from uniform, thereby giving informed marketers an edge over the competition”.
While going to work was the key reason to drive (45%) dropping children (39%) was the other expressed reason. Interestingly, about 17% of the intending drivers expected to shop more and indulge in more leisure activities. Combining this with the increase in female disposable income, a flip to the retail, entertainment and F&B sector is anticipated in the near future.
An overwhelming majority of intending drivers (92%) are expected to reduce their reliance on taxis and services such as Uber as a result. Women have also come out strongly in favor of reducing their reliance on personal drivers with over three fourths (80%) of intending drivers expected to reduce their dependency. As a result, we are expecting a significant impact on the usage of public transport (taxi/Uber) and a declining demand for drivers.
This decree will result in a significant demand surge for new vehicles with some 60% percent of the residents intending to buy a car in the next 3 years and 38% planning this purchase in the next year. Non-premium, small and medium car segments – with an average budget of SAR 63,000 – will be more in demand, with 71% intending to buy in that range.
However, the market for premium vehicles will grow as well and slightly more than a tenth are expected to pay over SAR 110,000 for these cars. There is a high degree of consistency in our findings between males and females, indicating the staunch support of males to the initiative. With males, likely to continue to play a key role in the decision of vehicle make/model, 44% were still undecided on whether to purchase or give an existing vehicle to the woman. Among those who were decided, 57 percent plan to buy a new car for women and a fourth likely to buy a new vehicle for themselves.
Currently the top 5 brands that women aspire to buy are: Toyota, Hyundai, Ford and Nissan with BMW being the aspirational brand in the premium segment.
Overall, significant economic benefits will accrue to Manufacturers, Insurers and Allied Services. OEMs that quickly adapt their lineup to deliver to this audience will capitalize the most on this change. Dealers over time, may need to revamp their sales and after sales process to cater to the needs to female buyers and relook at their communication strategies keeping this audience in mind.
The reduction in drivers over time will affect the demographic profile at the lower end of the spectrum and impact categories largely dependent on them such as CSDs and snacks. Differentiation will drive survival in the tech enabled transportation business. Uber and Careem will need to differentiate themselves to garner a larger share of a declining market and retain relevance among its female patrons, e.g. offering female Uber drivers.
Commenting on the changes, Nissan Middle East CMO Fadi Ghosn said:
“We expect to see growth in the medium passenger cars and medium SUV segment as female drivers seek a combination of space, practicality and convenience. There might also be vehicle shifts within the household with existing vehicles being given to family members and new ones purchased. Finally, along with increased new car sales, we expect to see growth in used car transactions - in what looks set to be a dynamic market.”



Posted by : GoDubai Editorial Team
Viewed 9644 times
Posted on : Tuesday, October 10, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Dubai International Motor Show in a league of its own with eye-catching line-up of awe-inspiring sup...
Next Story : Renault Middle East celebrates Saudi women in the driver's seat with model giveaway
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Michael Kors Presents Spring 2018 Jewelry
Max Fashion #ForgetFilters Campaign Celebrates Living for the Moment
Malabar Gold & Diamonds makes historic gain Opens 11 showrooms in a day across 6...
IKEA Welcomes Children in-store to Spread Love for the Arabic Language as Part o...
Sports Bras Banishing Bounce by 83% arrive in store
LG Exploring New Commercial Opportunities With Expanding Robot Portfolio
Transform Your Lips With Glitter Flip Liquid Lipsticks from Ciaté London
We Sheet You Not! Foreo Announces End of Face Mask Epidemic
Transform Your Skin In 2018 with QNET's Revolutionary Elixa Skincare
Experience the ultimate beauty extravaganza as MyBeautyFest kicks off with the i...
Qabala joins Air Arabia's Azerbaijan network
Golden Bridge Rectangle Diamonds designed to dazzle
Michael Kors Presents Spring 2018 Watches
AIGNER Love
New Year, New Skincare!
Bubble Clown by Matt Barnes
Coach presents the Grand Stainless Steel Bracelet Watch Collection
OMEGA and Pyeongchang 2018
Land Rover's 70th Anniversary Begins With Restoration of ‘Missing' Original 4x4
Garden Party Style and Cult Classics: Swatch Launches Spring-summer 2018 Collection
Corum Bubble Art For Those Who Appreciate A Work Of Art
Shimmering Gilda takes on a silvery sheen
Marine Torpilleur Military made for men who chart their own destiny
Joyalukkas grows presence in Singapore with new showroom on Serangoon Road
New Year – New Savings now with Al-Futtaim Honda
Spring/Summer 18' Beauty Picks from Missha Cosmetics
Samsung Delivers Vision for Open and Intelligent IoT Experiences to Simplify Eve...
Samsung Electronics' 2018 Smart TVs Become First to be Industry-Certified for En...
Scuderia Ferrari presents the latest RedRev Watch Collection
Dubai Culture Organises ‘Carnival of Ideas'
EUROSTAR presents seven global tech majors at CABSAT 2018
Signature Scents for Your Home
Malabar Gold & Diamonds strengthens its global position as a leading jewellery r...
Nissan and NASA extend research into autonomous mobility services
Nissan reaffirms importance of electrification at World Future Energy Summit
World Future Energy Summit's inaugural Mobility Conference to discuss future of ...
Dubai Tour team line-up announced: 16 teams of seven riders at the start
Abu Dhabi Quality and Conformity Council Completes Verification of Fuel Meters a...
Mashreq Bank offering credit cards for every passion
Renault-Nissan-Mitsubishi Launches a Venture Capital Fund to Invest Up to $1 Bil...
Panasonic Jaguar Racing Set Their Sights on Marrakesh E-Prix
HP Fuels the Future of Computing at CES 2018
Mido's Baroncelli Prisma - A sparkling play of prisms enhanced by 51 diamonds'
Governments to Signal Support for IRENA Key Role in Global Energy Transformation
ZAKK Air specialised headset for athletes launched in UAE
LG's Award-winning 4k Uhd Projector to Debut at CES 2018
HH Sheikh Hasher Bin Maktoum Al Maktoum opens CABSAT 2018
Dallas Picks Ericsson for Smart Cities Traffic Solution
Property Remains Preffered 2018 Investment Asset for UAE Residents
His Highness Sheikh Hasher bin Maktoum bin Juma Al Maktoum Visits du's Stand on ...