Consumers buy the product, not the brand: 65% of UAE consumers ignore brand names when buying consumer goods

Al Bawaba

a day ago

As UAE retailers and consumers start gearing up for the summer sales season, new research by SAP Emarsys in association with Deloitte has revealed increasing brand apathy among UAE consumers. When it comes to consumer products, 65% of UAE's consumers and 61% of the UAE's Gen Z population don't pay attention to the brands they're buying — as long as the product meets their needs. Furthermore, 67% of all consumers in the UAE have switched to own-label alternatives because they are more affordable.Interestingly, despite this heightened indifference to brands in general, a significant proportion of UAE consumers (68%) still actively advocate for their favorite brands in public. These insights are based on a survey of more than 2,000 UAE consumers and 100 senior marketers at multinational enterprises, which examined shifting attitudes towards consumer products.'Today's consumer landscape is shifting faster than ever, and brands must navigate this terrain with agility and insight,' said Marwan Zeineddine, Managing Director of SAP UAE. 'The research highlights a clear opportunity: while brand apathy is increasing, so too is the demand for personalized, emotionally resonant experiences. Leveraging technologies such as SAP business AI, brands can go beyond transactional relationships and deliver the kind of real-time, meaningful engagement that cuts through consumer indifference and earns lasting loyalty. This is where marketers can lead the charge; by bridging data and strategy to stay relevant and drive long-term success.'According to The Global Consumer Products Engagement Report by SAP Emarsys, we have entered the 'Engagement Era,' in which brands must establish a robust data foundation across their entire business in order to thrive. Embracing AI-driven, omnichannel strategies is no longer optional; it is critical for transforming fragmented data into actionable insights, building long-term relationships, and achieving true customer loyalty and lifetime value.This message resonates in the UAE, where 72% of consumer product marketers say it is becoming harder to engage meaningfully with customers, indicating that the majority are at risk of falling behind in this new engagement-driven landscape. Success in the Engagement Era depends on delivering a personalized omnichannel experience across the entire customer lifecycle, and leading brands in real-time engagement are already putting these strategies into action.'Consumers globally aren't just becoming less loyal to brands — they're ignoring them entirely,' said Sara Richter, CMO at SAP Emarsys. 'That's a wake-up call for marketers. Without a strong data foundation, it's impossible to deliver the real-time, personalized experiences needed to achieve that all-important 'true' loyalty.'When asked about barriers to effective customer engagement, UAE consumer product marketers cited internal complexity as the biggest challenge, with 31% identifying this as a key issue. Additionally, data continues to pose significant hurdles: 53% of marketers say they are unable to access or use data in real time, and 69% report their organization's data is too unstructured to use effectively.Similarly, when it comes to predicting future behaviors, only 28% of marketers feel confident in their ability to predict future consumer behavior, and just 30% believe they can effectively segment and analyze their audiences.As global consumer apathy toward brands increases, marketers in the UAE recognize the need to improve fragmented engagement approaches and outdated technologies. According to the report, 65% of UAE marketers say they will need to overhaul their engagement strategies in 2025. Meanwhile, 69% believe personalization will be a key differentiator in the year ahead, especially important considering that 77% of UAE consumers say they value highly personalized content.Where Do Brands Stand in the Engagement Era?The report from SAP Emarsys in association with Deloitte also introduces the Customer Engagement Maturity (CEM) score, which ranks consumer product brands on the strength of their customer engagement strategies. This research builds on earlier findings from Bain & Company, which point to a major industry shift toward ERP and SAP S/4HANA. This shift underscores the urgent need for consumer product brands to break down silos, accelerate operations, and engage customers more meaningfully.The CEM Index categorizes brands into three maturity levels:• Reactive: Still reliant on batch-and-blast marketing, sending the same message to all audiences.• Proactive: Using mobile and messaging channels, but still dependent on manual processes.• Predictive: Leveraging AI to anticipate needs, deliver real-time, personalized offers, and build long-term relationships.Brands in the 'Predictive' category demonstrate that to truly succeed in the Engagement Era, a robust business AI-infused ERP foundation, supported by a customer engagement platform, is essential. However, many brands still lag behind, with only 34% of consumer product marketers in the UAE currently sharing customer engagement data with a dedicated ERP system.
For those clinging to outdated strategies, investing in AI-driven, real-time engagement is no longer a luxury. This investment could be the deciding factor in whether a brand achieves its revenue targets in the Engagement Era.