HÀ NỘI — Consumers' purchasing power for the Lunar New Year (Tết) holiday has tended to increase from the 11th lunar month over the past few years. However, this year's festive shopping demand is forecast to decrease, as people target simplicity and cost-effectiveness or simply want to spend more time resting. 

The latest survey in the third quarter by market researcher Nielsen IQ found that financial security is among the primary concerns for Vietnamese customers who are looking longer term.

The survey, which collected responses from 1,200 Vietnamese consumers in HCM City and Hà Nội, indicates that many are reducing spending to avoid waste, even as their financial situation is getting better.

Many people are saving because they feel the prices of groceries and other essentials have increased over the last six months, according to the survey. 

It added that efficiency also ranks high in their priorities, with 85 per cent comparing prices before purchasing and 78 per cent willing to pay more for higher quality products. These trends demonstrate a sustainable and conscientious approach to consumption, focusing on quality over cost.

Nguyễn Hương who lives in Hà Nội said a smaller bonus that she would receive this year compared to last year, made her worried about spending for the upcoming Tết holiday. With her current financial situation, Hương said she planned to spend more economically for Tết, focusing on buying essential goods and limiting going out in order to save money.

Another Hanoian Thu Hoài said in recent years, she did not buy too many supplies and food for Tết holiday because stores and supermarkets opened very early, even during Tết, so it was very convenient for her to shop. Hoài said she would spend time resting, exercising and relaxing after a stressful year of work rather than going shopping for this holiday.

Senior business development director at Kantar Worldpanel Việt Nam, Nguyễn Phương Nga, said after a prosperous Tết 2023, 2024 saw a decline in spending on fast moving consumer goods in four key cities, while growing by 0.9 per cent in rural areas due to consumers’ growing desire to relax or travel during Tết.

Tết 2024 witnessed a shift towards practical and health-focused fast-moving consumer goods (FMCG) choices, which was evident in the reduced consumption of products such as alcohol, confectionary, soft drinks and energy drinks, in order to favour practical items that catered to the whole family.

Nga said at a recent conference in HCM City emphasised that this trend would significantly shape Lunar New Year 2025.

Alongside preserving traditional cultural values, people would also seek products that not only promote health but also embody the spirit of togetherness, reflecting care for quality of life. So businesses needed to align their offerings with consumers’ demand, she said.

According to Kantar, looking towards Tết 2025, a more positive economic outlook is shaping up. However, consumers remain cautious about their financial situation, indicating a conservative approach to spending.

Nga highlighted the importance of timing and channel strategy, saying that understanding consumers' shopping journey across both online and offline channels is critical.

Brands needed to engage consumers at the right time and place, capturing their needs from early shopping phases to the last-minute rush before the Lunar New Year, she pointed out.

To maximise reach and capture consumer demand, they must also tailor their strategies to the unique Tết shopping behaviours in urban and rural areas, she added. — VNS