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Retailing amid regulation and religion: The unique cultural challenges and opportunities facing market ventures in Saudi Arabia
Journal of Cultural Marketing Strategy,
3
(1),
70-81
(2018)
Abstract
Despite Saudi Arabia’s significant growth potential, integrative examinations of its retail industry, especially including its cultural background, are quite limited. The purpose of this exploratory paper is to identify opportunities and challenges that are unique to Saudi Arabia’s retail industries. As the religious Mecca for Islam, Saudi Arabia presents opportunities and challenges that are not typically observed in other emerging markets. The study concludes that the country offers market opportunities typically observed in other emerging markets, including increases in disposable income, an abundant young population and internet penetration rate. Market opportunities unique to Saudi Arabia include religious tourism and the associated retail space increase. Identified challenges that were similar to those of other emerging markets include the country’s lack of logistics and infrastructure for online sales, deficiency of clear regulations and ineffective bureaucracy. Challenges unique to Saudi Arabia were ascribed to its strict observance of cultural and religious customs and its new labour policy of Saudisation (Nitaqat). Such identified opportunities and challenges may facilitate understanding of the level of standardisation and adaptation recommended in the Middle East.
Keywords: Saudi Arabia; retail industry; Muslim culture; Saudisation
The full article is available to subscribers to the journal.
Author's Biography
Byoungho Jin is Putman and Hayes Distinguished Professor in the Department of Consumer, Apparel and Retail Studies at the University of North Carolina, Greensboro. Dr Jin’s research focuses on international apparel retailing and branding. She has published more than 110 refereed journal papers in top-level journals and made 110 refereed presentations, published six books/edited books, eight book chapters and 70 trade articles. She is an associate editor for Clothing & Textiles Research Journal and Fashion & Textiles.
Moudi O. Almousa is an associate professor of apparel marketing in the Department of Food Science and Nutrition at King Saud University, Riyadh. Dr Almousa’s research interests lie in the area of consumer behaviour in e-commerce. She has authored and co-authored many journal articles and conference papers, and has served as a visiting scholar at the University of South Carolina, North Carolina State University and Cornell University.
Naeun Kim is a doctoral student in the Department of Consumer, Apparel and Retail Studies at University of North Carolina, Greensboro. She received her BA in economics and MS in management at the Kellogg School of Business, Northwestern University. Her research interests include international marketing, branding, innovation and sustainable consumption.
