The Growth Engine of Real Purchase in Tet 2023
The upswing of Beverages sector
In Urban Vietnam, the recovery of frequency is also fuelling growth. Higher consumers’ basket value has driven the growth of Tet shopping (10% increase versus last year) for the last two years. This year, the shopping frequency in Urban areas inched up after suffering a decline last year due to lingering effects of covid-19, restrictions, people’s hesitance to go shopping.
Higher spending is also observed in Rural areas with a double-digit growth rates in two consecutive years. This rise in purchasing power presents ample opportunities for brands to expand their product availability and continue to gain more consumer choice even after the festive season.
Overall, Tet 2023 was a prosperous new year holiday, with value growth seen across all sectors.
Similarly to gifting trends, the value of the Beverages sector grew by 25% after two years of low consumption during the pandemic. Personal care is on track for recovery after a year in hiatus, as consumers prepare for more usage occasions.
There is also a premiumization trend in the top growth categories of wine/champagne and chocolates, which are not typically part of the Tet food and beverage buying repertory. Drinking yogurt is among the top three risers thanks to its health benefits and ease of consumption.
Street Shops and Hyper and Super remain the most popular channels for holiday shopping.
Besides the healthy growth seen across all channels this year, the contribution of Online and Mini Stores to channel values continue to increase. These emerging channels are proving their importance not only during consumers’ day-to-day shopping, but also during holidays thanks to convenience and a greater variety of products.
Proximity channels are becoming more relevant during the holiday season helped by a greater variety of festive categories in smaller formats which previously could only be found in the larger hyper and super formats or traditional trade.
So what does this mean for manufacturers? To maximise the opportunities for growth offered by Tet, they should not ignore smaller and online formats in their distribution plans and maintain activations in other retail formats, such as mini stores and online.
