Are consumers tightening their belts to shop for Tet (Lunar New Year)?

(Dan Tri Newspaper) - This Lunar New Year, consumers are prioritizing frugal spending, cutting back on unnecessary expenses, focusing on essential goods, and taking advantage of promotional programs.

"No unnecessary expenses, just cut back on whatever is good for your wallet."

Ms. Ngoc Anh ( Hanoi ) said that this year she decided not to include wine in her Tet gift baskets, but instead added some domestically produced cakes and candies. "Even though they're domestic products, if you carefully choose the specialties, they still meet the criteria of being delicious, nutritious, and affordable," she said. According to her, the shopping criteria now is "no extravagance, cut back on whatever is best for the wallet." Ms. Ngoc Anh is not the only consumer choosing this spending method. Thanh Huyen (Hanoi) plans not to buy new clothes or get her hair done this Tet to save money for more necessary expenses. Huyen's workplace only gives a 13th-month salary this year, not a Tet bonus. To keep Tet spending within 30 million VND, Huyen plans to reduce the amount of lucky money given to relatives and prepare gifts herself, such as coconut jam and candied fruits, instead of imported fruits. Thu Hien (Hanoi), an employee of a state agency, officially left her job just before Tet. "This year, I didn't receive my 13th-month salary or Tet bonus, only the remaining New Year's bonus," Hien said. "The end of the year is a time for family gatherings, so I still prepare gifts for both my husband's and my own families, but I have to replace them with more affordable Tet gift bags, unlike last year," Hien shared. As consumers cut back on spending and limit purchases, many small business owners also have to adapt their business strategies. Ms. Luu, the owner of a grocery store on Tran Thai Tong Street (Hanoi), proactively packages reasonably priced, inexpensive Tet gift sets to avoid unsold inventory. "In previous years, gift baskets and self-selected sets were commonly priced at 800,000-900,000 VND, but now they are only 400,000-600,000 VND," Ms. Luu said. According to her, customers this year prefer buying confectionery, beverages, and household cleaning products – items directly related to and indispensable during the Lunar New Year.

Supermarkets are stepping up promotional programs, offering buy one get one free deals (Photo: My Tam).

Although the value of orders remained stable or decreased, people's purchasing power increased compared to normal days. Taking advantage of the days leading up to Tet (Lunar New Year), Ms. Vy Anh took her daughter shopping for the holiday. "With work and housework piling up so close to Tet, I only now have time to shop," she said. She also wanted to secure her and her husband's bonuses to allocate expenses and avoid running out of money. Furthermore, she believes that Tet offers many promotions, giving shoppers more choices in terms of price. An employee at a Winmart store in Hanoi said that in previous years, customers started shopping from the beginning of the twelfth lunar month. But this year, even 2-3 weeks before Tet, people haven't been shopping as aggressively, only becoming more enthusiastic in the last few days. In addition, according to this employee, to save money, consumers tend to prioritize shopping on days when supermarket chains have many promotions. "Most items are on sale during this period," she said. "You have to wait and jostle, but closer to Tet, there are more and deeper promotions. Shopping at this time also has a lively atmosphere," she added.

Tighten your purse strings when shopping for Tet.

Data from Kantar Worldpanel Vietnam shows that over the past three years, the contribution of the two-month Tet holiday to the annual results of the fast-moving consumer goods (FMCG) industry has gradually decreased, from 21% to 19% in urban areas and from 24% to 21% in rural areas. Therefore, manufacturers and distributors must understand and respond to the trend of consumers wanting to celebrate and prepare for the Lunar New Year in a simpler and more convenient way. Similarly, according to PwC's "Asia Pacific Consumer Survey 2024" report in Vietnam, inflation is the top risk for the vast majority of Vietnamese consumers in the next 12 months. Specifically, 63% of consumers expect to increase spending on essential goods, followed by clothing (52%) and healthcare products (48%). This data shows that, in addition to preparing for Tet (Lunar New Year), people are also concerned about taking care of their own health and that of their families.

Inflation is the top risk for the vast majority of Vietnamese consumers over the next 12 months (Photo: Thanh Dong).

Furthermore, the Metric data platform also predicts that retail sales on e-commerce platforms will increase significantly during the Lunar New Year holiday. A recent report on consumer shopping behavior during Tet by Metric shows that product categories with strong growth potential on e-commerce platforms include food and beverages, especially fresh produce, vegetables, confectionery, and non-alcoholic drinks. In addition, beauty products, fashion items , and Tet gifts are also projected to see growth. According to the company, consumers also tend to shop more economically by proactively shopping early for Tet, seeking promotions closer to the holiday. Spending on healthy food and beverages will also be prioritized. To attract consumers during Tet, online sellers are advised to increase their advertising budgets by 10-30% compared to normal days. Previously, during the 2024 Lunar New Year holiday, total sales on online retail platforms accounted for 4.6% of the total revenue of the Vietnamese retail market, an increase of over 100% compared to 2023.

Trends in Tet shopping: economical and simple.

This year's shopping trend is seen as economical, focusing only on essential goods. Popular items are primarily necessities such as fresh food, and items heavily consumed during the Lunar New Year holiday like confectionery and beverages, all in the mid-range price segment. Specifically, customers mainly choose confectionery in the price range of 100,000 to 250,000 VND, prioritizing products from reputable brands with attractive packaging. It is expected that consumer demand will continue to increase strongly in the coming days as the Lunar New Year approaches. WinCommerce has recorded a 10-20% increase in customer traffic at its supermarket system compared to normal days, especially during peak hours in the evening and on weekends. Similarly, purchasing power at GO!, Big C, and Tops Market is gradually increasing day by day, focusing on items such as confectionery, beer, wine, soft drinks, cold cuts, imported fruits, Tet decorations, and seasonal Tet goods like sausages, pickled vegetables, pickled onions, and ham, as well as fresh produce such as pork, chicken, and fruits. Supermarket chains predict that purchasing power during the Lunar New Year will increase by about 20% compared to normal days. On the supply side, supermarket chains have proactively stockpiled goods early, increasing reserves by 10-20%, ensuring sufficient goods to meet people's consumption needs throughout the Tet holiday. Supermarkets have also proactively stockpiled to ensure supply and maintain stable prices throughout Tet, especially for fresh food items such as pork, chicken, vegetables, Tet offerings, spices, and high-consumption items such as confectionery, beverages, etc.

This year's shopping trend is seen as being more economical, focusing only on essential goods (Photo: Do ​​Ngoc Luu).

To boost domestic consumption and lay the groundwork for even stronger growth this year, the Ministry of Industry and Trade has directed the Departments of Industry and Trade in provinces and centrally-administered cities to proactively implement solutions to ensure a balance between supply and demand, stabilize the market, and prevent shortages and disruptions in the supply chain that could lead to sudden price increases before, during, and after the Lunar New Year. The Departments of Industry and Trade in provinces and cities should also strengthen coordination with businesses to forecast consumer demand and develop appropriate supply plans; and intensify the organization of large-scale, nationwide promotional programs to create a strong ripple effect and encourage people to purchase Vietnamese goods.

Dantri.com.vn

Source: https://dantri.com.vn/kinh-doanh/khach-that-chat-hau-bao-sam-tet-20250122164634538.htm