It’s that time of year again. Red and gold decorations are festooned in every window, motorbikes are sparkling from a thorough wash and Abba’s Happy New Year is playing everywhere on repeat.Yes, Tet (Lunar New Year), Vietnam biggest holiday, is upon us.
Tet is a time of increased spending thanks to a long tradition of gift giving, drinking and dining with friends and family, and sprucing up the home for the holidays. But how much more are people spending? What exactly do they buy and what brands are they particularly drawn to?
The answers to these questions are incredibly valuable to companies with a Vietnamese market, so we decided to find out.
LAUNCHING A VERY SPECIAL DECISION LAB TET STUDY
We asked 960 people in our Online Community (half women and half men) of different ages from across Vietnam about their New Year shopping habits. The result were comprehensive, and offer a fresh insight into how consumer trends are changing, both in the holiday season and beyond.
The most heartening thing about our findings is that they show people are spending considerably more for Tet this year. Two-thirds of those interviewed said that they would do more shopping this holiday than ever before. That’s good news for the business and good news for the economy.
THE YOUTH EMBRACES NEW CONSUMER PLATFORMS
We found that this growing consumer sentiment is being strongly driven by the young population, particularly those aged 18-24. They are embracing new consumer platforms, such as online shopping, and are more likely to spend their hard-earned money on high-cost items, such as high-end fashion, motorbikes, smartphones and televisions.
Despite the upswing in these newly popular categories, traditional products still remain the most popular at Tet. Our study found that clothes (85%), beer and wine (77%), shoes (70%), special Tet food (64%), carbonated soft drinks (62%) and family gifts (59%) are the most sought-after item. With 81% of people saying that they like to buy presents for those closest to them, it’s clear that at Tet family still comes first.
THE STRONGEST CONSUMER SENTIMENT IS OUTSIDE HANOI AND HO CHI MINH CITY
All this spending is by no means restricted to the country's biggest cities, Hanoi and Ho Chi Minh City, as is often assumed. On the contrary, our report found that there is in fact stronger consumer sentiment during Tet in non-metros. More than 60% of respondents living in these areas expect to spend more money for the holiday this year, in comparison with around 50% of city dwellers. This is a huge market not currently being given the attention it deserves by companies.
We also received a wealth of data on the brand preferences of consumers. For example, while Samsung, which has a major presence in Vietnam, is the most popular of the white goods brands, Sony is more popular for people buying TVs. Meanwhile, Sunlight is the most popular home care brand during Tet, with over 70% of people claiming that it’s their number one choice. All of this information is crucial for brand managers hoping to make an impact in Vietnam. Now is the time for them to adapt to new trends.
DECISION LAB CAN HELP YOU EMBRACE TOMORROW
Our team of experts has been hard at work analysing this data and forecasting how businesses can better reach their targeted demographics intelligently. We are in a great position to offer invaluable, personalised advice to companies, diving deeper into these new trends with them and ensuring their success in the Year of the Goat and beyond.
We’d like to end this blog by wishing everybody a very happy, healthy and successful Lunar New Year. From all of us at Decision Lab, Chúc Mừng Năm Mới!