In this exclusive interview with Adgully Middle East, Slava Bogdan, the CEO and co-founder of Flowwow, offers invaluable insights into the phenomenon of post-Ramadan sales surges, particularly within the dynamic landscape of the e-commerce sector.Under Slava Bogdan, Flowwow has emerged as a transformative force in the global marketplace, seamlessly blending the global reach of technology with the intimacy of local connections to redefine the art of gift-giving. Founded in 2014 by Slava Bogdan alongside Andrey Makeev and Artem Gambitski, Flowwow has transcended conventional boundaries, revolutionizing the $30-billion online gifting market. With a presence in 30 countries, including vibrant markets such as the UAE, Spain, Turkey, and the UK, Flowwow boasts a diverse array of over 14,000 local brands from 1,000 cities, facilitating heartfelt connections across the globe.Driven by a mission to infuse joy into the lives of people worldwide, Flowwow empowers individuals to surprise their loved ones with a curated selection of flowers, confectionery, and artisanal treasures from local artisans, fostering personalized experiences that resonate deeply.Slava Bogdan offers insights into the phenomenon of post-Ramadan sales surges, particularly within the dynamic landscape of the e-commerce sector. He delves into the intricacies of consumer behaviour, market trends, and the transformative potential of technology in shaping the future of commerce. Excerpts:What product categories experience the biggest sales surge post-Ramadan in the UAE's e-commerce boom, and why?A new study by Flowwow, a gifting marketplace for local brands, and Admitad, an affiliate marketing platform, has revealed that Ramadan traditions are fueling a surge in online shopping across the MENA region and motivate people to buy more. The UAE is leading with an average order value (AOV) of 102 USD during Ramadan this yearDuring the Ramadan period, the Flowwow’s data shows that sales of the florist’s original bouquets have surged by 220% from 2023 to 2024. In March 2024, the company's experts observed a 36% uptick in custom-designed cakes, a 26% rise in personalized bento cakes, and a 15% increase in chocolate-covered strawberries featuring customized designs. The turnover of the “confectionery” category for the first three months of 2024 is already half of the total turnover for 2023. Additionally, there's a noticeable increase in the frequency of orders for cosmetics and fragrances from local brands, including handmade varieties. Certain categories of goods and services have also experienced significant spikes in popularity compared to non-Ramadan periods. Hotels have seen a remarkable increase of 56%, followed by airplane tickets (+40%), flowers and souvenirs (+37%), electronics (+30%), and food delivery (+26%). Additionally, there has been a notable surge in the purchase of sporting goods (+21%).Admitad experts made a comparison with last year's activity and revealed that users are making 15% more purchases during Ramadan 2024. Interestingly, although the number of purchases has increased, the total amount spent has remained relatively stable. This suggests that shoppers during Ramadan 2024 are making smaller, more frequent orders, resulting in an overall increase in sales volume. People aren't just buying more online; they're also making smaller, more thoughtful purchases that truly capture the spirit of Ramadan. How can the UAE e-commerce businesses leverage customer data and buying habits from Ramadan to personalize post-Ramadan marketing campaigns and encourage repeat purchases?By effectively leveraging customer data and tailoring post-Ramadan marketing efforts based on Ramadan buying habits, UAE e-commerce businesses can enhance customer engagement, drive repeat purchases, and foster long-term loyalty among their customer base. We can also argue that the era of generalized marketing campaigns is over, and e-commerce players must differentiate themselves by offering customers what they genuinely want.For instance, to craft a special gift idea for the holy month, Flowwow used a data-driven approach and tapped into insights drawn from consumer studies conducted during Ramadan and Eid al-Fitr. From the open studies and surveys, we found out that 83% of people seek spiritual inspiration, 78% showing interest in gift ideas and how-to videos with a surge in "Ramadan games". While 91% of shoppers prefer the content that promotes community and togetherness across both Facebook and Instagram during Ramadan and Eid. The consumer insights confirmed our suspicions: there is a growing reluctance towards cliché gifts during Ramadan celebrations. It moved us towards offering people something truly unique and meaningful, reflecting the core Ramadan values. So, combining social media insights with the increased interest in games and gift ideas, we decided to introduce the "Ramadan Moments" card game, infused with local artistry. This gift idea was designed to foster meaningful interactions within families and uphold the values of unity and togetherness during this holy period. What’s also significant to consider: all of our promotional activities were consistent and aligned with one core strategy, contributing to brand recognition, trust-building, audience engagement, and long-term success in the competitive landscape. The database of those who interacted with the game can be further turned into the database of loyal customers. If you manage to connect with the audience during your Ramadan campaign, do not miss an opportunity to foster your client-to-business relationship. Personalise the next offering, use digital marketing instruments like Facebook Ads to keep customers updated on what you're offering. It will build deeper associations and connections that could turn your customer into a repeat one. For instance, at Flowwow we usually use a look-alike audience to find our target client.Did the UAE's e-commerce infrastructure face any specific challenges in handling the Ramadan surge in online orders? How can businesses adapt their logistics strategy to ensure smooth delivery during such peak periods? That’s a good question for us, as despite our rapid growth into a global marketplace with 3,000,000 orders per year and operations in over 30 countries, we have maintained a remarkable 98% customer satisfaction rate without expanding our team. On International Women’s Day alone, Flowwow processed 250,000 orders (compared to the average volume of 10,000 per day), ensuring quality service with just 1.6% disputes from the massive count.So, during Ramadan and Eid Al Fite sales peaks, our first and foremost goal is to sustain customers’ trust, keep up with the increased flow of orders and maximise overall customers’ experience.To make it happen, our IT, customer support, and operations teams have developed a flexible system that allows us to scale and manage services efficiently, particularly during peak periods. A well-structured support service combined with big data analysis helps us win over customers and uphold our brand's reputation even during high sales periods. Here are also some tips that help us go through the festive periods:1. We adapt all product features before the holiday so that during the holiday, we can provide a comfortable user experience. Additionally, our support team handles all IT bugs so that they can be implemented into operation.2. We conduct an analysis of expected traffic and build processes around it, involving the support and IT teams.3. Since we are a marketplace, it is important for us to inform our sellers, so we tell them about the expected growth so that they can prepare.During the post-Ramadan boom, do UAE consumers tend to favour local or international e-commerce retailers? What strategies can both local and global businesses adopt to attract customers in this competitive landscape?As Ramadan seamlessly blends tradition with modern shopping practices, we're seeing a surge in online gift purchases. This trend is fueled by both the convenience of online shopping and the growing desire to support local businesses. During Ramadan 2024, Flowwow is observing a remarkable uptick in the popularity of local and personalized gifts. The company’s experts report that in March 2024 alone, the number of online gift purchases from local brands in the UAE increased by 65% compared to the same period last year and by 84% compared to non-festive periods. The growing trend towards authenticity highlights a shift towards supporting local businesses and embracing individuality in gift-giving choices. Local makers often have a deeper understanding of multicultural preferences, offering unique options that resonate with people's needs. Given UAE’s diverse population, strong cultural tradition of gift-giving, and the increasing impact of digital technologies, the country’s online gifting market presents significant growth prospects and is predicted to expand at a compound annual growth rate (CAGR) of 19-20% from 2024 to 2028.
