Exploring Vietnam’s Holiday Season: A Deep Dive into Consumer Behavior and Retail Opportunities
The holiday season represents a pivotal time for Vietnam’s retail sector, particularly as Tet accounts for approximately 20% of the annual FMCG (fast-moving consumer goods) revenue. This article aims to elucidate the unique characteristics of Vietnam’s holiday season while delving into the evolving consumer behaviors during this crucial period. Additionally, we’ll offer brands strategic insights to seize these opportunities effectively.
Understanding the Holiday Season in Vietnam
The holiday season is universally recognized as a time for celebration, joy, and togetherness. In many parts of the world, this includes festivities such as Christmas and the New Year. However, the scene in Vietnam is markedly different.
In Vietnam, Christmas is not a public holiday, leading to businesses operating as usual. Celebrations generally occur in the evenings after work, with people choosing to spend the holiday with close family and friends rather than traveling far. Common activities include dining out, exchanging small gifts, and enjoying public countdown events.
Christmas and New Year Celebrations
While many countries revel in the splendor of Christmas, the Vietnamese experience of this holiday is relatively subdued. Only January 1 is observed as a public holiday, which results in less elaborate celebrations compared to Western countries.
The focus tends to shift towards the more significant festivities surrounding Tet, which can be perceived as the grand finale of the holiday season, epitomizing concepts of renewal, prosperity, and family unity.
Tet (Lunar New Year)
Tet marks the peak of the holiday season in Vietnam and signifies the start of the new lunar year. The public holiday for Tet in 2026 will span from February 14 to February 22, offering a week of festivities.
Preparation for Tet is extensive and can commence as early as a month in advance, with people purchasing new clothes, stocking up on food for family gatherings, and preparing gifts or red envelopes for family visits. Such traditions significantly bolster retail demand, as households stock up on items for the celebrations.
Moreover, Tet also attracts a notable influx of overseas tourists. The National Administration of Tourism reported a 30% increase in foreign arrivals during the previous Tet holiday, primarily attributed to relaxed visa and entry regulations.
Changes in Consumer Behavior
As the holiday season approaches, consumers’ spending behaviors are influenced by various factors, including economic conditions and cultural expectations. In 2025, Vietnam anticipates entering the holiday season amid uncertainties stemming from global geopolitical tensions and climate change.
Despite these challenges, experts believe that financial prudence will not lead to reduced holiday spending. Instead, consumers are expected to adopt more strategic purchasing habits, focusing on value rather than mere affordability due to rising household expenses and inflation concerns.
Phases of the Tet Shopping Journey
Recent research from Decision Lab outlines a clear evolution in shopping patterns across three phases during Tet:
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Phase 1 – Early Preparation: Shoppers start planning their purchases well in advance to secure the best deals. More than one-third begin their planning about 40 days before Tet, with 60% making purchases 20 days prior.
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Phase 2 – Core Festive Spending: This peak period is characterized by significant consumption for family gatherings, home preparations, and ceremonial activities.
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Phase 3 – Post-Tet Consumption: After the festivities, spending transitions from gifting to self-reward, leading to increased demand for wellness products and services, such as spa treatments and dental care.
Key Retail Product Categories During Tet
Tet stands as a critical moment in the retail calendar, specifically within the FMCG sector. Notable product categories that capture consumer interest during this festive period include:
| Category | Main Drivers | Notable Products |
|---|---|---|
| Clothes | Brightly colored new clothing symbolizes good fortune. | Apparel, footwear, accessories, children’s clothing |
| Beauty Care | At social gatherings, a refreshed appearance boosts confidence. | Skincare, cosmetics, haircare, body lotion |
| Food & Beverages | Significant food preparation for gatherings and ancestral worship drives demand. | Confectionery, alcoholic beverages, snacks, fresh fruit |
| Home Appliances | Home cleaning symbolizes welcoming good luck; buyers become more selective due to budgets. | TVs, air conditioners, refrigerators |
According to NielsenIQ, traditional trade remains a favorite for Tet shopping. However, e-commerce is rapidly gaining traction, noted for its convenience and promotional incentives.
Shopping Channels by Category
Understanding consumer preferences in shopping channels can significantly benefit retailers. The following table summarizes the primary shopping channels preferred by consumers for different product categories during Tet:
| Category | Traditional Market | Supermarket | E-commerce | Specialty Store |
|---|---|---|---|---|
| Fresh Food & Ingredients | 84% | 42% | 8% | 12% |
| Packaged Foods & Snacks | 38% | 71% | 48% | 14% |
| New Clothes | 34% | 28% | 68% | 41% |
| Electronics & Appliances | 6% | 38% | 64% | 42% |
Strategic Insights for Brands
As the holiday season begins, brands should recognize this unique retail cycle characterized by preparation, celebration, and post-holiday consumption. Here’s how brands can effectively navigate this period:
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Align Marketing Campaigns: Launch campaigns before the peak season to tap into consumers’ advance planning and shopping behavior.
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Tailor Product Designs: Revamp packaging to align with festive themes, local traditions, and convenience, increasing relevance in the local market.
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Optimize Pricing and Promotions: As consumers shift towards value-driven purchases, targeted discounts and transparent pricing can motivate additional sales.
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Embrace an Omnichannel Approach: Ensure visibility across all shopping channels for a seamless customer experience, whether in-store, online, or through specialty retail avenues.
Vietnam’s holiday season presents vibrant opportunities and unique challenges. By strategically planning and aligning with evolving consumer preferences, brands can successfully tap into the potential of this festive period.