Business

A new report by SAP Emarsys, in collaboration with Deloitte, reveals a major shift in consumer behavior across the UAE, with 65% of consumers disregarding brand names when purchasing products, and 67% opting for private-label alternatives due to affordability.

Despite this growing brand apathy, 68% of UAE consumers still actively promote their favorite brands—highlighting the importance of emotional connection and personalized engagement in driving loyalty. The research, based on insights from over 2,000 consumers and 100 senior marketers, urges brands to evolve beyond traditional strategies and adopt AI-powered, real-time, omnichannel engagement models to stay relevant.

“Today’s consumers crave personalized, emotionally resonant experiences,” said Marwan Zeineddine, Managing Director of SAP UAE. “To overcome brand indifference, businesses must leverage robust data foundations and SAP Business AI to deliver meaningful, real-time connections.”

UAE Marketers Face Data Challenges

The Global Consumer Products Engagement Report indicates that 72% of UAE marketers are struggling to engage customers effectively, citing internal complexity (31%) and data issues (53%) as key challenges. Additionally, 69% report that their customer data is too unstructured, and only 28% feel confident predicting future consumer behavior.

As a result, 65% of UAE marketers plan to revamp their engagement strategies in 2025, acknowledging the urgency of adapting to the “Engagement Era”—a marketing era driven by personalization, agility, and AI.

“The truth is, consumers aren’t just less loyal—they’re ignoring brands completely,” said Sara Richter, CMO at SAP Emarsys. “Without real-time data insights, marketers can’t deliver the individualized experiences that drive true loyalty.”

Customer Engagement Maturity Index: Where Brands Stand

SAP Emarsys introduces a Customer Engagement Maturity (CEM) Index to categorize how advanced brands are in customer engagement:

• Reactive: Rely on batch marketing with limited personalization.

• Proactive: Utilize mobile and messaging but remain dependent on manual processes.

• Predictive: Employ AI to anticipate needs and deliver real-time, personalized offers.

Only 34% of UAE marketers currently integrate customer engagement data with ERP platforms like SAP S/4HANA, indicating a significant gap in technological readiness. The report calls for an urgent shift toward predictive engagement strategies to ensure brands remain competitive.

Personalization as a Key Differentiator

With 77% of UAE consumers valuing highly personalized content, marketers see personalization as the biggest differentiator moving forward. In fact, 69% believe it will be a defining factor for success in 2025.

The findings build on a broader trend identified by Bain & Company, showing industry-wide migration toward integrated ERP solutions—underscoring the need for consumer brands to break down operational silos, streamline engagement, and deliver on-demand relevance.

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