The changing consumer behaviour and how Ramadhan impacts economic activity
Ramadhan is a time of spiritual reflection, fasting, and community gatherings, but it also brings significant shifts in economic activity, particularly for Small and Medium Enterprises (SMEs) in Oman. With altered consumer behaviours, adjusted working hours, and evolving business strategies, SMEs must navigate both challenges and opportunities to sustain operations and capitalise on seasonal demand.
While certain sectors, such as retail and food services, experience a surge in sales, others may see slowdowns due to reduced working hours and shifting consumer priorities. However, businesses that effectively adapt—whether by launching Ramadhan promotions, extending evening hours, or embracing e-commerce—can transform the holy month into a period of growth and increased engagement.
For SMEs in the food production sector, Ramadhan necessitates careful planning to meet fluctuating demand. Farha Al Kindi, CEO of Mina Fisheries Products, explained that the company structures its operations well in advance to align with seasonal fish availability and anticipated market needs.
'Our production schedule is carefully structured to correspond with the seasonal fish landings throughout the year. We ensure that when large catches are available, we acquire, process, and store sufficient quantities to meet market needs,' she told the Observer.
She added that a significant portion of production takes place in Sha'ban, the month preceding Ramadhan, to ensure stock availability. 'While regular manufacturing slows down during Ramadhan, we maintain limited production for specific requests or non-core products. However, the overall volume remains lower than usual.'
Rather than focusing on production, Mina Fisheries shifts its emphasis during Ramadhan to marketing, distribution, and sales management. 'During Ramadhan, our emphasis transitions from manufacturing to ensuring efficient product distribution, marketing initiatives, and sales management. This approach allows us to maintain a steady supply of our products in the market while adapting to the evolving consumer landscape during this period,' Al Kindi noted.
Said Ali Al Mandhry, CEO of Libasi, highlighted that the company successfully navigated the challenges of Ramadhan by aligning its operations with the season's unique rhythm. 'While some perceive Ramadhan as a period of reduced productivity, at Libasi we maintained steady performance by adopting flexible working hours and a Lean Management approach,' he said.
Recognising different peak periods for each department ensured efficiency. 'Our sales team sees the highest engagement after Iftar, while our marketing team focuses on visibility during the day, and operations ramp up in the evening,' Al Mandhry explained. He noted that shorter working hours actually encouraged greater focus and collaboration among teams. 'Ramadhan inspired even greater teamwork, enabling us to set clear goals and coordinate effectively to overcome potential slowdowns.'
Beyond operational success, Libasi remained committed to social responsibility by donating traditional garments to charitable organisations. 'Giving back to the community is a core value at Libasi, and we take pride in strengthening our bond with society during this important time,' he said.
As Oman continues its economic diversification efforts, understanding the impact of Ramadhan on different industries is essential for SMEs striving to remain competitive. By anticipating market trends and adjusting their strategies accordingly, businesses can use the holy month as an opportunity for sustainable growth and long-term resilience.
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