?Cautious optimism? around Tet 2023's FMCG growth
The Lunar New Year – known locally as Tet – is the busiest season of the year in Vietnam, generating massive increases in shopping, gifting and travelling across the country. In 2023, the holiday falls on 22 January. Consumers will place high expectations on brands to deliver in terms of price, products and services – especially in the context of rising inflation in Vietnam and the rest of world.
Vietnamese consumers can finally embrace a new year free of lockdowns and restrictions. However, with climbing inflation and the rising costs of consumer goods being top of mind, shoppers are not entering Tet 2023 free of worries.
So how might consumer FMCG spending differ during the upcoming festive season? And how can brands best position themselves for success in this optimistic yet cautious climate?
The outlook for Tet 2023
Following declines in FMCG growth during the last two Tets, the prospect for Tet 2023 is better, as the wider Vietnamese economy is recovering and consumers are feeling positive about this. However, growth will be hindered due to rising concerns around income and job security. With pressure from inflation still present, shoppers are feeling the squeeze on their wallets, and are adopting different strategies to adapt to the economic situation. On the other hand, we can anticipate a boost in spending power coming from two big holidays happening in a single month (New Year and Tet 2023).
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