Tet 2023: three festive FMCG shopping insights unveiled
As consumers entered a Vietnamese New Year 2023 free of restrictions, how did holiday shopping behaviours fare against the expected headwinds?
Worldpanel by Kantar is thrilled to introduce our Tet 2023 report capturing the key highlights about consumer behaviours during the biggest holiday of the year in Vietnam. This report offers insights on how FMCG performed during Tet 2023 in Urban 4 key cities and rural Vietnam, over a five-week period that ended on January 29th, 2023.
Tet 2023 was a new year where we truly resumed normal lives, prompting a bigger celebration after two years of living with restrictions that prevented festive gatherings. However, people still had worries about the year ahead. As of Q4 2022, consumers reported a drop in financial confidence due to rising prices and inflation as well as worries about household income and job security.
1. Strong Recovery in Value Growth
The anticipated challenges rounding out 2022 did not dampen the holiday spirit as FMCG made a strong recovery in value growth during Tet 2023 in Vietnam’s Urban 4 Key cities and Rural areas. This growth was driven by increases in both volume and price, indicating that purchasing power has increased despite the ongoing effects of global economic headwinds and rising inflation.
As brands and manufacturers look to connect with consumers through relevant and meaningful offers, it's important to note that FMCG volume growth has been slower than price increases. With inflation predicted to average at 4.5% this year, brands must find ways to create value for consumers while maximising brand potential.
2. FMCG gifting returns as a Tet staple
FMCG gifting is a longstanding tradition during Tet, and FMCG has recovered its place in gifting, led by Beverages and Personal Care. More households reported receiving FMCG as gift this year, with a 29% value rebound in Urban 4 key cities and 22% increase in rural areas.
This trend indicates that FMCG products are still seen as a practical, convenient, and valuable gifting option, alongside non-FMCG categories like money or clothing. Brands can leverage this trend by creating special packaging or promotions that emphasise the gift-giving value of their products.
3. Growth in FMCG Real Purchase Driven by Higher Spending per Trip
The growth in real purchase of FMCG during Tet 2023 was driven by higher spending per trip. The Beverages sector is once again the star of the show, achieving the highest growth thanks to the rise in consumption of alcoholic beverages.
Non-food FMCG sectors like Personal Care also helped drive FMCG value growth during Tet 2023, as consumers had more reasons to increase usage occasions this past holiday.
Healthy growth is seen across all retail channels. While Street Shops and Hyper and Super remain the most popular channels for holiday shopping, the contribution made by emerging channels such as Online and Mini Stores to overall channel value continue to rise.
Get in touch with us to learn how you can leverage consumer insights to transform your holiday marketing plans and engage with consumers in meaningful ways. Take advantage of this opportunity to make a lasting impression in the next festive season.