Millennials in the US and GCC

September 2016

Prepared For:
Background | Heritage, Recognition & Relationship Strategy

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Research
Objective, Methodology, Capabilities

MarketVision Research has lead an effort to learn more about the growing population of Millennials —
young adults age 18-34 — in the GCC and US through custom quantitative and qualitative research.
Research covered broad topics that play a role in the lives of Millennials and are of interest to the
companies who serve them:

Free time Technology and Shopping Finance Health/wellness Education Values and
activities/ media usage and healthcare goals for
hobbies the future

QUANTITATIVE SURVEY 8 QUALITATIVE FOCUS GROUPS

Even split of males and females in the 18-24 Dubai (UAE) Jeddah (KSA)
and 25-34 age groups
5 males in each 5 males in each
age group age group

n=201 n=200 n=200 5 females in 4 females in

each age group each age group

4
Activities | Free Time

“I have more fun with my friends, but my “Friday is always a family

In GCC, tradition/family guide activities, but Millennials dad is my duty… I sit with them and have gathering day, we have lunch and
look for some separation — seek time to self and escape dinner and coffee, and then I leave.” (KSA) spend the day together.”(KSA)

from others’ judgement. They still echo some tradition,

but also seek their own way. “My hobbies are different sports and martial arts, going to the gym, playing football,
swimming and diving.” (UAE)

UNITED STATES SIMILARITIES GCC

Free time in the US is more devoted to Free-time activities vary across regions, GCC emphasizes family time and rest.
entertainment. and gender greatly impacts the • UAE = extreme gender differences
• KSA = more consistency between genders
activities of choice.

96%

95%

81%

80%
76%
72%
70%

67%
GCC

GCC

GCC

GCC
US

US

US

US
Spend time Relax or Watch Watch TV
with family sleep movies
or friends

5
Activities | Travel and Leisure

Travel helps to escape local cultural constraints and provide social freedom, striking “Abroad, we don’t care about what
people say. Here, we always worry
a balance between tradition in their own country and their desire for the about what people say. When you are
aspirational Western lifestyle. abroad, no one knows you and you
can do whatever you want. And there
aren’t any restrictions like here,
our traditions.” (UAE)

Millennials travel primarily for

leisure and travel destinations
align with proximity. “I would visit Morocco, Algeria,
Tunisia, because they are a mix
between Europe and the Middle East,
I like the idea of this Europe –
Middle-East hybrid.” (KSA)

More GCC
Millennials than “I want my woman to be able to walk
77% US Millennials 98% around with her hair out, to feel free.
have traveled in I mean, outside I can hug my
the past year. girlfriend in the streets.” (UAE)

US GCC “Travel alone, because traveling with

Notably for UAE, Arab Region travel is the family is more restricting.” (UAE)
GCC Millennials mostly travel within their primarily among men; women make up the
country, the Arab Region, and Europe. majority of European travel. “Everything that is not allowed here,
we want it abroad.” (KSA)

6
Technology/Media Use | Internet Connectivity

Smartphone use allows social time and personal freedom while fulfilling the expectations of “You are talking about half of your
day. Almost the whole day you have
spending time with family and adhering to traditional social norms. It is an escape and an your phone in your hand. When you
extension of who they want to be, but not necessarily how they act in front of their families. remove that, what will you do? You
would be lost.” (KSA)

WORK PLAY
“Before we would sit together
Smartphones are and actually talk, now everyone is
GCC Millennials are less connected Outside of work, GCC surpasses on their phones, in their own
at work than their US counterparts. THE DEVICE of the US for the time spent online. little worlds.” (UAE)

Hours online at work in 2 days: Millennials Hours online outside work in 2 days:

65% 66%
7 38% 11 “People now work through their
phones only.” (KSA)
US UAE KSA

3 Average % of online
hours spent on a
13
smartphone “My father gets mad when we don’t
sit in the living room, so he turns off
the internet which makes all of us go
2 13 out of our rooms to ask about the
internet.” (KSA)

7
Technology/Media Use | Video Streaming

“Like every time I’d be sitting and

Video content is key for Millennials across regions, whether they are viewing on the TV or watching TV, with my dad or my brother,
streaming on a mobile device. Streaming content on mobile devices allows for the then a certain type of scene would come
on! Like a romantic scene or something,
separation and privacy that GCC Millennials seek. and it’s so embarrassing.” (UAE)

UNITED STATES SIMILARITIES GCC

Mobile streaming
37% is less prevalent in
the US. Video content is key, whether watched live or streamed. In search of more
privacy, GCC is more
72% likely to stream video
TV (scheduled/live) 61% 66% 72% on their mobile
device.
Computer Streaming 58% 54% 69%
US Millennials are
Devote their full
“multi-gadget” users – Mobile Streaming 37% 69% 74%
attention to TV
using a variety of
96% 20% watching with no
devices while watching Smartphones are kept close by.
other device
TV (tablets, computers, When watching TV most are 84% 71%
simultaneously using their smartphone.
distractions.
gaming devices, etc.).

“In terms of news, or to look for something specific on TV, I can get that on my phone.” (UAE) “…you go in your room alone and watch (TV) on your iPad.” (KSA)

8
Technology/Media Use | Social Networks

For GCC Millennials, online sites and apps are the prevalent means of connection to their GCC spends a great deal of time on social
social life and a way to separate from family and traditional expectations. network sites, significantly more time
Quick and easy communication is second nature and a must with this group. Top apps, than their US counterparts.
such as WhatsApp, Snapchat, Twitter, are all touchpoints for instant communication. Hours per week on social networks:

A gap exists between younger and older Older UAE Millennials mostly rely on
Millennials – especially for UAE. WhatsApp, Facebook, and You Tube, 12 35 28
Younger group desires some online separation while significantly fewer of their younger
and less inclined to share the “social scene” counterparts use those apps
with older generations. (25%+ difference).

85% 82% 89%

70% 80% 80%
60% 77% 76%

“Yeah, I mean it’s the basis of my relationships. Skype, “…meet new people through groups, on WhatsApp. It’s “Facebook was first, then we discovered Twitter, then
WhatsApp, and all of that.” (UAE) mostly Instagram, and Snapchat.” (KSA) Instagram, then Snapchat took over.” (KSA)

9
Technology/Media Use | Social Networks and News Coverage

Social networks are becoming more categorized by need (social, news, how-to). Platform will impact how the message is
received and its perceived level of authenticity/validity. With all the time spent online and it's multi-faceted use as a
resource, meeting this audience at the right place for the right need is key.

Growing in popularity:
also use apps like Snapchat and Instagram
Snapchat & Instagram
These are rising to the top across region,
gender, and age groups.
Snapchat for socializing;
Instagram as a source of knowledge.
89%
Some GCC females who are not working
to learn new crafts or hand work (art,
sewing, knitting, etc.) to keep busy at
home (especially in KSA).
Social media is the primary source of
“Instagram more than Snapchat because it presents
you with everything that is new.” (KSA)
“Most of the time if I find a character that I liked or
an account that I liked on Instagram then I go on
Snapchat and add her.” (KSA)

77%

news coverage.
69%

65%

“Twitter and
66% Facebook come
last because these
GCC

GCC
US

US

are more relevant

74% to people who are
interested in the
news more than
It is trailed by general online
anything else.”
sources and TV. Usage of print media (UAE)
is much lower in GCC than US.

10
Shopping | Retailers

“If we have a short list, we go to small

Malls are a more prevalent retailer in GCC than US, driven by mall markets. If we need to buy a lot, we
shopping as a cultural hobby. go to hyper markets.” (KSA)

“When they need groceries, like my

UNITED STATES SIMILARITIES GCC mom wants ice cream, I go get her ice
cream, or she wants to go shopping, I
take her shopping.” (KSA)
More The most popular shopping More mall
online venue— grocery stores. shopping than US.
shopping Secondary reliance
than GCC.

98%
on hypermarkets

87%
84%

84%
80%
and bakalas,

74%
Top categories shopped cover

72%
especially in KSA.
personal/basic needs:

54%

52%
• Food

47%
Females make the

42%
38%
• Clothing household

31%
• Personal care shopping decisions,

KSA 12%
males execute.

UAE

UAE

UAE

UAE

UAE
KSA

KSA

KSA

KSA
US

US

US

US

US
While women dominate as consumers in the health & beauty division for
US and UAE (largest gender divide), the gap is narrowed for KSA. Grocery store/ Online Hypermarket/ Bakala
Mall
supermarket Marketplace club store
(Souq, Amazon)

11
Shopping | Promotions

US 56%
GCC as a culture looks for convenience. Coupons require effort and collection and would
Product
not resonate with GCC consumers. With online shopping in GCC on the rise (49% in UAE), UAE 51%
discounts
free shipping and returns may start becoming more attractive to Millennial consumers. KSA 73%

US 40%
UNITED STATES SIMILARITIES GCC Coupons UAE 39%

KSA 8%
Top promotions (after Simple product discounts GCC Millennials also look for
product discounts): which require no additional limited time sales as promotions.
• Coupons effort or restrictions are most US 39%
• Free shipping preferred.
Free shipping UAE 9%
KSA 3%

US 12%
Limited UAE 28%
time sales
KSA 35%

12
Shopping | Style

Millennials look to differentiate themselves by “The Abaya used to be black, “I get to know new trends from my
but now the new trend is colored friends - if he is wearing a new brand
accessorizing and showing their personal style while Abayas.” (KSA) watch I’d ask him about it.” (UAE)
adhering to traditional norms and apparel.
“We find out about trends from people
“Now the trend is in layers and
we follow on Snapchat and
accessories.” (UAE)
Instagram.” (UAE)

UNITED STATES SIMILARITIES GCC

99%

91%
87%

85%

81%
Millennials prefer Accessories and

59%
Less

58%
53%
products tailored to

46%
preference for cosmetics/
classic fashion their individual grooming are
as opposed to needs/style. important

UAE
UAE

UAE
KSA
personal

KSA

KSA
trendy.

US
Rely on various media

US

US
for current styles differentiators.

“I prefer “I prefer fashion “I rely on

products that is classic as magazines, TV, or
tailored to my a opposed to social media to
individual needs trendy.” keep me up-to-
or style.” date on fashion.”

13
Shopping | Brands

Brands that rise to the top for Millennials are similar across regions. “When I find a brand/retailer I
like, I stick with it.”

85%

81%
78%
Among a list of brands across various industries, Apple consistently resonates with Millennials across cultures.
Other top brands with whom they identify most are Samsung, Nike, and YouTube

UAE

KSA
US
UNITED STATES UAE KSA “I buy brands that reflect my
lifestyle.”

81%

81%
77%
UAE

KSA
US
54%

52%
50%
46%
44%

37%
34%

34%

34%
29%
28%

28%
15%
15%

10%
9%

9%
8%
Ranked 1st Ranked Ranked 1st Ranked Ranked 1st Ranked
1st/2nd/3rd 1st/2nd/3rd 1st/2nd/3rd

14
Shopping | Purchase Decision Making

GCC Millennial purchase decisions are impacted by the desire for self-expression “The style I want, I never find. I have to order it
and personal freedom; US Millennials can differentiate themselves in other from abroad. Last time ordered from my
cousin, he was coming from America.
ways. With this group, provide value in offerings that extend beyond price. It’s expensive.” (KSA)

UNITED STATES SIMILARITIES GCC I am always US 83%

looking for
a bargain GCC 54%
More US Millennials define Millennials will pay more for GCC Millennials claim to be
themselves as savers and quality, are loyal to less price-sensitive if it is an
look for a bargain. brands/retailers they like, item they really want.
When it comes US 75%
and buy brands that reflect
US Millennials maintain to money, I
their lifestyle. am a saver
“saving” as a future goal. GCC 54%

54% Plan to
save/invest If I really want US 60%
money in the something, the
33% near future. price doesn't
really matter GCC 81%

15
Shopping | Corporate Social Responsibility

In GCC, Millennials look to differentiate self and are not impeded by cost or other external factors like environmental or
social responsibility. Emphasizing benefits that are personal/relate to personal image are likely to have the greatest
appeal; they are less moved by health/environment/social responsibility.

61%
50%
Volunteer in community in free time. 42%
24% 10% 5%

UAE

In UAE, males drive down willingness to
pay more for a socially responsible brand.
UAE Males: 24%
UAE Females: 59%
KSA
US
“I am willing to pay more for a brand that
demonstrates social responsibility (i.e.
environmentally conscious, charitable, etc.)”

16
Financial | Banking

Reliance on online connectivity and mobile devices extends into banking behaviors, US 58%
though many GCC Millennials continue to prefer in-person banking.
UAE 16%
Online
KSA 21%

UNITED STATES GCC US 20%

In-person at 33%
UAE
a branch
US uses online banking UAE relies on in-person KSA 46%
for most transactions. transactions at a bank
(driven by young females) US 17%
or mobile apps (driven
by males). Through a UAE 39%
KSA also prefers in-person mobile app
KSA 20%
banking.

US 4%

Over the UAE 11%

phone
KSA 14%

17
Personal Health | Healthcare

“The government nowadays is really

A majority of Millennials have a positive outlook on healthcare, though this positive taking care of everything, they aim
feeling is stronger for GCC Millennials than in the US. This may be a reflection of having for the best doctors and devices
around the world.” (UAE)
government provided “free” healthcare, while access to affordable healthcare is a
constant debate in the US. “They don’t have expertise,
the doctors. Some do have expertise,
but not as much as doctors
abroad.” (KSA)
UNITED STATES SIMILARITIES GCC

More than their Most feel they GCC are satisfied with UAE Millennials have trust
“I can afford the UAE 93%
younger have appropriate healthcare and give in their governmental
health care I
counterparts, access to higher positive ratings hospitals; need.” KSA 100%
25-34 year olds in affordable than the US, especially KSA seems to trust in the
the US : healthcare and are KSA Millennials. doctors there, but not
“I am typically
• find healthcare satisfied with the the service. satisfied with the UAE 89%
affordable quality of care quality of
• proactively received. treatment I KSA 98%
However, a majority in GCC admit receive.”
manage their
to having more confidence in
health 60%
healthcare provided outside the “I use local health 69%
• regularly use UAE
country (US: 37%). care services and
health services facilities
KSA 84%
regularly.”

18
Personal Health | Food and Diet

“Healthy eating” is a rising trend in GCC but does not yet impact decision making like in the
US. Millennials are torn between the diet of their culture and modern trends. Emphasizing
other benefits beyond health (convenience, balance of indulgence & health, maintaining self)
may have more appeal/greater impact for this group.

UNITED STATES GCC “I don't think of healthy food when

going out with friends. They wouldn’t
let me.”(UAE)
Food and diet is key driver Health has less impact on
of behavior. diet decisions in GCC.
GCC surpasses the US in “I look for taste, not whether it is
Compared to GCC, more US
desiring indulgence but healthy or not.” (UAE)
Millennials worry about
wanting healthy ways to
sugar intake, read food labels
offset it and in sacrificing
when making a purchase, and “If I always ate a healthy food, it will
health for convenience.
avoid fast food. be different from my family's food, it
Snacking preferences needs another budget.” (KSA)
US Millennials are
aiming to be healthier. 61% in GCC remain mostly
55% Compared to a year ago, unchanged.
just over half are seeking “I think if you just eat in moderation,
Sugar intake is not concerning you don't need to keep thinking of
healthier snack options.
in GCC. healthy options.” (UAE)

19
Personal Health | Wellness

GCC Millennials give moderate awareness to their personal health and wellness, but it does not
yet translate to healthier behaviors. Diet is not a consistent worry, and most are less committed
to regular exercise.

61% 40% 28%

GCC Millennials are much less likely to exercise or
play sports as a free time activity.
US UAE KSA

UNITED STATES SIMILARITIES GCC

“I think people now focus on sports
more and pay it more attention,
Exercise in the US Millennials lean Exercise is a negligible part of the regular weekly because of social media. When you
is more prevalent. toward being routine for GCC Millennials. watch people doing sports you feel
excited to do so as well.” (KSA)
health conscious,
Of those who do but without About one-third of KSA Millennials do
exercise, average being extreme. 29% not exercise at all in a typical week “My mom cooks the fattiest food. Like
hours spent (driven by both genders). rice and chicken kabsa, how can I work
out and then eat that?” (UAE)
exercising are:
9.0 In UAE, nearly half of the women do not
7.6 6.5 “Thanks to following a fitness
47% exercise at all. (Only 7% of men do not
instructor on Snapchat I worked out
exercise.) and became very careful about what I
eat. I remember at some point I
US UAE KSA stopped eating rice completely.” (KSA)

20
 Personal Health | Food and Diet

92%
91%
81%

77%

76%
69%

66%
65%

65%

64%

63%

62%

61%

61%
60%
58%

57%
57%

49%

48%
41%

40%
35%

35%

35%

28%
28%
UAE

UAE

UAE

UAE

UAE

UAE

UAE

UAE

UAE
KSA

KSA

KSA

KSA

KSA

KSA

KSA

KSA

KSA
US

US

US

US

US

US

US

US

US
Want indulgence, To treat myself I Worry about the Sacrifice health I believe eating Regularly read I look for products Eat locally Avoid fast food
but want to often choose amount of sugar for convenience chocolate can the nutritional with natural or grown produce
maintain a snacks made with in my food have health information organic whenever I can
healthy balance chocolate benefits before buying ingredients
food

A flag next to a percent indicates that proportion is significantly higher than that of the region referenced.
21
Values | Family

GCC Millennials are accustomed to family time; they desire to make their families proud and carry their family values on to
the next generation. While both UAE and KSA Millennials spend a great deal of family time, in KSA that does not
necessarily translate to sharing or relying on family for help and advice.

SIMILARITIES GCC
TO US
Millennials agree they
want to: GCC Millennials are more apt US 79%
• make their families than their US counterparts to give
proud equal consideration to their UAE 90%
FAMILY ADVICE FRIEND INPUT
• stay in touch with family and personal goals when
KSA 90%
I often ask my parents family/ friends, decision making. I rely on friends' input
or older family/friends • carry family’s values to when I make an
for advice. the next generation KSA Millennials are much less likely to ask parents important decision.
75% These sentiments are or older family members/friends for advice; 66%
84% stronger in GCC than US. UAE is more reluctant to rely on friends. 34%
42% 80%

“I go to my mom for advice when I
have done something wrong. She
comforts me. Makes me feel like it is
not the end of the world.” (UAE)
“I think that our families don’t give us “Close friends I could talk to about
“Sometimes the family’s opinion doesn’t
the chance to get close to them and talk family issues and problems.
really influence us, you take the advice
to them. Some of them wouldn’t accept …studying or work, I could ask my
of your own generation.” (KSA)
the topic being spoken about.” (KSA) friends as well.” (UAE)

24
Aspirations | Employment

“I would love to take care of myself. I

Millennials across regions are generally optimistic about future employment prospects, want to be employed and go to my work,
especially in UAE where many have the option of guaranteed public sector work. and make my own money.” (UAE)

KSA Millennials are less optimistic than their Emirati counterparts, with a greater
number searching for work or working part time jobs. “I think in the private sectors, the
American passport will help [get a
job]. But in public sectors, it’s the
opposite.” (UAE)
Employment
I am optimistic about
my future employment/

38%

36%

34%
“For me, my dad isn’t really working, so I

22%
opportunities.

14%

14%
go out and photograph events.” (KSA)

9%

7%
US 74%
Employed Employed Full-time Not
full-time part-time student employed, “To find a job is very difficult today. They
UAE 94% but looking used to say study and you will find a job
within your specialty, but now you study
KSA 87% and you work for a job that is not related
to your specialty…” (KSA)
UAE KSA
Saudis are less optimistic than UAE about employment prospects,
creating a shift in perception of their future work opportunities and “Sometimes we feel pessimistic,
current employment (more are working part-time). depressed, because everything is
based on connections and
‘Wasta’.”(KSA)

25
Aspirations | Outlook on the Future

Millennials are generally optimistic in their intention to make the most out of life; however, some do have doubts about
the future, particularly in the US. For many GCC Millennials, especially females, a primary hope for their future is
independence through financial security, entrepreneurship, and social freedom.

SIMILARITIES
GCC
TO US

Millennials While all are generally positive about the future, GCC
want to make Millennials show more confidence than their US counterparts.
the most out
I want to make the most UAE Millennials express more doubts about the future I sometimes have doubts
of life and be
of my life and be than KSA, particularly UAE females overall and about the future.
recognized for
recognized for who I am. younger males. 75%
who they are. US
US 81% 67% Males, 18-24 82% Females, 18-24
UAE 64%
33% Males, 25-34 72% Females, 25-34
UAE 97%
KSA 44%
KSA 99%

“I want to be my own person, not necessarily related

“I want to open a boutique and all the “I can barely think of “It could be some customs and
to a certain job or a certain goal but to generally be
dresses to be from my design, I like these the end of the week, I traditions; you want to do things and
independent, and have a stronger personality. Maybe
things. I used to make some designs, and don’t really think far achieve your dreams but you can't
achieve that by having my own business or continuing
I sold some of them.”(KSA) ahead.” (UAE) because of our environment.”(KSA)
my studies further.” (KSA)

26
Aspirations | Goals

“As for my familial goal, it’s

Relationships/family are a top future priority for GCC Millennials. Often “good” jobs and about getting married and buying
making money serve as a means to this end. More GCC Millennials are also showing a a house.” (UAE)

desire to express their independence and make money by opening their own businesses.

“I want to get a good job so that I

UNITED STATES SIMILARITIES GCC could get married.” (KSA)

Top Future Goals Top Future Goals

(Mentioned by 33%+) (Mentioned by 33%+)
Having good
relationships/ “I wish to establish my own
making a family company.” (KSA)
ranks highest Good relationships Make a Open my own
Good relationships Make
money across regions. with family/friends family business
with family/friends

37% “My goal is to open and manage my

GCC Millennials have a Open own business, like a series of
Further my strong interest in own restaurants.” (UAE)
education entrepreneurship. 30% business

Females in KSA are empowered and desire further

education and financial success. “As long as I have the degree that is
Make a Travel 36% want to open their own business, far more than what matters, then you get a good
family the world job, and you get married.” (KSA)
US (16%) and UAE (22%) women.

27
Appendix