Post-Tet inventory

Before the Lunar New Year, increased consumer demand prompted businesses to ramp up production and import large quantities of goods to meet market needs. However, immediately after the holiday, purchasing power slowed down, leading to a large surplus of goods, putting significant pressure on finances, warehousing costs, and impacting the business strategies of many companies in the first few months of the year.

Food, cakes, and candies are among the items with large inventories after Tet (Lunar New Year), putting pressure on businesses to sell them.

According to statistics from the Thanh Hoa Department of Industry and Trade, the inventory levels of many businesses after Tet (Lunar New Year) typically increase by 20-35% compared to the annual average, especially for items such as food, confectionery, beverages, clothing, and construction materials. Several large manufacturing businesses in Thanh Hoa have had to adjust their business strategies to reduce inventory pressure and ensure a balance between supply and demand.

The main reason for high post-Tet inventory levels is the discrepancy between projected demand and actual consumption. Toan Thanh Confectionery Joint Stock Company, located in Quang Dong ward (Thanh Hoa City), increased production by over 40% before Tet to meet the demand for gifts and personal use during the holiday. However, after the holiday, purchasing power dropped sharply, and a large amount of unsold goods remained at distributors, forcing the company to implement a significant discount program of 20-30% to stimulate demand. In addition, the company also increased the distribution of its remaining inventory through e-commerce channels such as Shopee and Lazada to reach a wider customer base. Mr. Nguyen The Thang, the company's director, shared: "We had forecasted consumption demand based on data from previous years and market trends, but in reality, after Tet (Lunar New Year), purchasing power decreased more sharply than expected. Currently, the company is implementing many measures to quickly clear inventory, including deep discounts at dealerships, expanding online sales channels, and cooperating with supermarket chains to increase product coverage. Our goal is to sell at least 70% of the remaining inventory within one month after Tet to avoid impacting cash flow and subsequent production plans."

Not only the food industry, but the garment sector has also been affected. Truong Thang Garment Export Joint Stock Company (Nong Cong), specializing in manufacturing and exporting clothing to Japan and South Korea, recorded a 20% increase in post-Tet inventory compared to the same period last year due to foreign partners cutting orders. To cope, the company has flexibly shifted its focus to the domestic market, cooperating with large supermarkets to distribute products. The company has adjusted its production plan, focusing on product lines that suit the tastes of domestic consumers, such as office wear, casual wear, and loungewear. The company has also invested in improving designs, enhancing product quality, and diversifying price segments to make products more accessible to customers. In addition, promotional programs have been implemented to quickly clear out existing inventory, reduce inventory pressure, and maintain business operations.

The construction materials industry is also facing difficulties. Truong Giang Construction Materials Co., Ltd. in Lam Son ward (Thanh Hoa City) has encountered a situation where inventory has increased by more than 25% compared to before Tet (Lunar New Year) because construction projects have not restarted immediately after the holiday. To address this situation, the company has proactively contacted distributors and implemented attractive discount policies for large orders to reduce inventory. Simultaneously, the company has adjusted its production plan, reducing operating capacity by 15% in the first month of the year to avoid oversupply; and strengthened cooperation with construction contractors to ensure stable product sales.

Faced with this situation, businesses in Thanh Hoa have implemented various solutions to minimize inventory and optimize business operations. Some retail businesses, such as the Co.opmart Thanh Hoa supermarket system and Go! Thanh Hoa, have begun implementing the "Tet Clearance Sale - Shocking Prices" program to quickly sell off excess inventory, recover capital, and reduce warehouse pressure. According to Ms. Le Thi Dung, Director of Go! Thanh Hoa supermarket: "We have proactively adjusted our sales strategy, increasing deep discounts to stimulate consumer demand. At the same time, the supermarket is also coordinating with suppliers to offer preferential prices, helping customers easily access quality products at reasonable costs. In addition to direct price reductions, the supermarket also applies purchase-and-receive-gifts, discounts on invoices, or reward points to encourage consumers to spend more."

Several other businesses in Thanh Hoa are also applying technology to inventory management to optimize their supply chains. For example, Thanh Hoa Pharmaceutical and Medical Supplies Joint Stock Company has used smart inventory management software, which helps accurately track the quantity, expiration date, and location of goods in the warehouse. Thanks to this, the company can quickly adjust its distribution plans, minimizing excess or expired goods. In addition, the company is strengthening cooperation with major distributors in the Central region and expanding its online sales channels to reach more customers.

Overall, the issue of post-Tet inventory remains a challenge for businesses in Thanh Hoa. However, with flexible management strategies, from adjusting production volume and optimizing the supply chain to boosting promotions and expanding markets, businesses can minimize risks, balance supply and demand, and maintain stable business operations in the first few months of the year.

Text and photos: Chi Pham

Source: https://baothanhhoa.vn/hang-ton-kho-sau-tet-bai-toan-can-doi-cung-cau-cho-doanh-nghiep-238814.htm