Tet is not a popular term in most parts of the world. But for Vietnam, it is without a doubt the most important and popular festival that symbolises the beginning of the Lunar New Year with celebrations and festivities. Tet is a special period where Vietnamese return home to be with their families. It is a time where most Vietnamese receive bonuses often the equivalent of one month’s salary or more, and also the period where hard-earned money saved after a year of work will be spent.
The Tet shopping season begins four weeks before the first day of the Lunar New Year. During this period, the Vietnamese spend days cleaning their homes and buying clothes, food and gifts. Kantar Worldpanel Vietnam’s report on Tet 2017 shopping season estimated that in-house purchases in Vietnam reached USD 1.76 billion, nearly double of other months. Compared to the Tet shopping season in 2016, there was also double-digit growth in consumer spending in both urban and rural parts of Vietnam.
Hottest FMCG purchases at Tet 2017
The peak shopping period for consumer goods was two weeks before the first day of the Lunar New Year in 2017. The growth in Tet consumption is often driven by sectors such as confectionary, beverages, and cooking additives. Most of the top growth categories belong to the Food and Beverage sector, but 2017 saw the addition of two home care categories to the list: Bathroom cleaners in urban Vietnam and Tissue in rural Vietnam.
In the next few years, we can expect consumers in Vietnam to not only purchase food and beverages, but also home cleaning and paper products during Tet because they offer convenience to families as they clean their houses in preparation for the celebratory period.
Tet’s the season for giving
During Tet, the Vietnamese delight their friends and relatives by exchanging spring flowers, fruits, or purchased hampers. Tet 2017 saw an increase in gifts, with more households receiving gifts and gifts of higher value.
Gift exchanges were a key driver of growth during Tet 2017: nearly 1 out of every 3 USD dollars spent during Tet went to gifts (1 USD = 22,600 VND). The top chosen categories for gifts were biscuits, beer, canned soft drinks, cooking oil, and cooking additives (sugar and MSG). These purchases were made based on budget, feasibility of gifts as useful Lunar New Year items, desire or preference, as well as age and socio-economic status.
What can manufacturers do to thrive at Tet?
1. Be available
Be prepared for peak consumer spending during the Tet shopping season, and ensure stocks are pushed to the market at least two months before.
2. Make the connection
Ensure all advertising communications and promotions (both below-the-line and above-the-line efforts) help consumers to associate your brands as ideal purchasing choices for Tet.
3. Remember the importance of gifts
Gift packaging, gift sets or gift baskets are some ways to be aligned with gift customs in Vietnam for greater sales.
In a nutshell, Tet is a special time for consumers to celebrate and make purchases in both urban and rural parts of Vietnam. For manufacturers and retailers, Tet is an ideal time to speed up business growth by taking advantage of the high impact the festival has on consumerism in Vietnam.
Source : Kantar Worldpanel Vietnam