Looking back at Tet 2024
Tet, the Lunar New Year, is a cornerstone of Vietnamese culture, a time for family reunions, feasts, and celebrations. The festive season typically drives significant spikes in FMCG consumption due to increased household spending and gift-giving. This is also the time when a wave of migration occurs on a large scale across the nation, influencing the distribution and consumption of FMCG products in different regions.
Tet 2024 presented a unique scenario, with FMCG value growth remaining unchanged compared to the previous year.
Several factors contributed to this halt in value growth. The year 2023 was marked by economic challenges, which cast a shadow over the holiday spirit. By the end of 2023 leading up to the festive season, a significant portion of the population faced financial difficulties, leading to a decline in spending intentions. Concerns about job security, bonuses, and overall economic stability weighed heavily on consumers' minds, impacting their willingness to spend during Tet 2024.
While Tet 2024 faced unique economic challenges, the market demonstrated resilience, maintaining the peak consumption level as the year before. The 2024 holiday season also saw a trend towards simpler, more mindful celebrations, reflecting a desire for healthier lifestyles and reduced financial burdens.
The evolving significance of Tet
The two months leading up to Tet traditionally witness a surge in consumer activity, as people prepare for the festivities. However, the value contribution of the Tet period (the 2 months of January and February) in a year is showing a declining trend.
Does this mean Tet is losing its importance?
Over the last 5 years, Vietnamese consumers have had to constantly grapple with change: a pandemic, inflation, and natural disasters. These events have created a sense of uncertainty and stress, leading many to seek relaxation and respite during Tet.
As a result, there has been a notable shift towards simplifying Tet preparations, reducing the number of gatherings, and prioritising personal time. While Tet remains a special time of the year, Vietnamese consumers seek to spend it more for themselves and families, and less on elaborate feasts and large gatherings, which also contributes to saving money and resources.
A confluence of economic challenges, financial uncertainty, and changing consumer lifestyle has led to a more subdued spending environment. Brands and manufacturers must be agile and capture on this trend to resonate with consumers’ evolving needs, particularly during festive seasons.
