Tet 2023 Vietnamese consumer optimism

Richard Burrage
Dec 07, 2022

Tet 2023 Vietnamese consumer optimism

Tet 2023 Vietnamese consumer optimism is high. Tet is the most important holiday season in Vietnam and is a celebration of the arrival of spring, the start of the lunar new year and the hopeful commencement of good fortunes. It is a time of bringing family together and renewing expectations for health, happiness and prosperity.

For the foreign reader unfamiliar with the lunar new year, Vietnamese over 60 years old in Vietnam consider Tet as their birthday. Historically individual birth dates held little relevance as there were few means available for an individual celebration. All children were considered aged one at birth and their next birthday was the forthcoming Tet. Tet is therefore akin to a national birthday celebration bigger than an individual birthday, a Thanksgiving and a Christmas celebration combined.

Understanding TET and the cultural mores and rituals around this celebration is critical for marketing teams. You can find more reports on TET cultural attitudes and marketing efforts at www.cimigo.com, specifically;

Vietnamese mums yearn for appreciation at Tet

 

 

 

Mums and Tet     

 

Vietnamese teens build deep connections at Tet

 

 

Teens and Tet

 

 

Vietnamese Tet and consumer packaged goods

Tet celebrations and the renewal of hopes for the lunar new year ahead have a significant impact on sales for many consumer packaged goods and beyond in Vietnam. Consumer expenditure is double that of a typical month in the run-up to TET. In part for gifting to those whom consumers wish to show their respect to (in both family and business) and for enjoying time at home with extended family and guests.

For many consumer goods companies, winning or losing at Tet will make or break their annual sales. Spirit brands will see up to 60% of their annual sales in the 6 weeks leading up to Tet. Beer will see up to 30% and Tet related categories of; soft drinks, biscuits and candy will experience significant spikes. The process of renewal will also see consumers undertake a personal and household renewal process, pushing sales higher in personal care, fashion, household care, home appliances and building materials (as many will undertake renovations and renewal of their homes prior to Tet).

Vietnamese Tet survey approach

In this report, Cimigo explores expectations for the coming Tet (the first day of the lunar new year is on the 22nd of January 2023). This will be the year of the cat.  557 consumers were interviewed online. The respondents are male and female aged 18 to 45, in HCMC, Hanoi and Danang. Cimigo conducted an online survey using our own online communities, to uncover:

  1. Vietnamese household and personal income momentum and expectations.
  2. Vietnamese consumers’ expectations on expenditure and shopping behaviour for Tet.

Download the report here

Strong optimism toward Tet for Vietnamese consumers 

Tet 2023 Vietnamese consumer optimism

Consumers expect that their income and quality of life will improve over the coming 6 months. More expect bonuses than last year and most expect higher bonuses.

The additional expenditure in the run-up to Tet is expected to nearly equal a normal month’s expenditure at VND6,790,000 (US$266) and amongst higher-income households earning VND15,000,000 or more per month the extra Tet expenditure will be higher than a normal month’s expenditure at VND11,749,000 (US$461).

 

Tet shopping channels in Vietnam

Supermarkets and wet markets are the main channels for shopping for Tet. Online shopping performs better for personal care compared with other categories. 

Tet 2023 Vietnamese consumer optimism is high and consumers expect to spend more on travelling and shopping, especially for durable items such as mobile phones, motorbikes and appliances.

 

Download the report here

Tet brand associations in Vietnam

Tet brand associations in Vietnam

 

Coca-Cola (soft drinks) and Kinh Do (biscuits) are the brands spontaneously associated with Tet. Family reunions and sharing with loved ones are the main themes expected to touch consumers’ hearts in Tet marketing activities.

 

 

Download the report here

March 2023 update with actual retail sales:
Vietnam retail sales over Tet grew by 27% over 2019

Comparing sales to Tet in 2019, as a pre-pandemic norm, sales of retail goods increased by 31%, reaching approximately US$51 billion (1,185,826 billion Vietnam dong).  Sales in tourism, hospitality and services grew 15% reaching approximately US$14 billion (324,149 billion Vietnam dong).

Retail sales of goods and services in Vietnam combined grew by 27% over Tet, compared to 2019.

The chart compares retail and service sales over the Tet period. Sales are combined for the months of December (prior year), January and February (current year) given the varying lunar new year date. 

Vietnam retail sales over TET grew by 27% over 2019

End.

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