T

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In review
10 Key Shopper Insights
to remember about Tet

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 Timeline for Tet Analysis
Tet period: 5 weeks before the 1st day of Lunar New Year

• Tet 2020: 5 weeks ending 2 Feb 2020

• Tet 2021: 5 weeks ending 21 Feb 2021

• Tet 2022: 5 weeks ending 6 Feb 2022

Jan 2022 Feb 2022

Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun
1 2 1 LUNNA
2 3 4 5 6
NEW YEAR
3 4 5 6 7 8 9 7 8 9 10 11 12 13

10 11 12 13 14 15 16 14 15 16 17 18 19 20

17 18 19 20 21 22 23 21 22 23 24 25 26 27

24 25 26 27 28 29 30 28

31
 1. Citizens’ Migration Back To Hometown

Being suffered from the biggest wave of Covid-19,

more than 1 million migrants had to return to their
hometowns. This shift leads to certain changes.
One of them is a shift in terms of consumption
between urban and rural areas of Vietnam.
Source: VnExpress

Tet month 2022 Tet month 2022

2. Rising Cases Of Covid-19 Cases In Rural

Tet 2022 HA NAM
HCMC

With a large number of people returning to their

3 unique PHU THO hometowns, the sharp increase of Covid-19 cases in rural
AN GIANG
areas is an inevitable consequence. Especially this time

settings
was very close to Tet festival, which partly affects
HUE
DONG THAP
family gatherings, visits to give gifts, restraining the
strong spending on gifting during festive season.
Daily Covid-19 cases by provinces

3. Lingering Financial Impact % Unemployment rate in working age

The unemployment rate increases 3.98

3.56
significantly in the second half of 2021,
2.85 2.73
suggesting a prolonged effects on 2.63 2.62
2.34 2.42
citizens' income stream, therefore
affecting family grocery spending Source: GSO

level. Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21

 10 Key Shopper Insights
to remember about Tet 2022
 A LESS
PROSPEROUS TET
% Value growth of in-home FMCG in Tet (vs the same period LY)
Since Covid-19 appeared, the pandemic has turned how
people live, interact and celebrate upside down. Tet 2021 Tet 2022

7%
Consumer spending on FMCG in Tet 2022 declined by -4%
3%
1%
in Urban 4 key cities, and stagnated at 0% in Rural
Urban 4 key cities
Vietnam. This illustrates how the market remains gloomy,
experiencing a considerable setback as consumers’ -4% Gifting volume
Total -8% (no. of units)
spending power is lowering down. – 15%
Household Purchase
-16%
Demand for family consumption still increases, possessing Gifting
growth at +1% in Urban and +8% in Rural. 8%
3% 4%
On the other hand, Gifting suffered a sharp decline (-16%)
0%
Rural 0%
despite being an inevitable factor in Tet (contributing up
to 30% sales in previous years). This has caused the
Gifting volume
downturn of total market value. (no. of units)
– 14%

-16%

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities & Rural | FMCG Including Gifts
GIFTING TONES DOWN,
YET EXPECTS TO BOUNCE BACK
% Households receive FMCG as gifts What’s behind FMCG Gifting Setback?

Urban 4 key cities

Long term Short term: Under Covid-19 impact

79 • Simplify Gifting targets: According to • Minimize gathering / celebration:

77
Kantar’s Tet survey, a shopper tends Consumers tend to enjoy Tet with
70
to give gift for 3 different families, yet their own family to ensure epidemic
they tend to simplify their Gifting prevention, as well as to limit
practice by aiming for fewer targets unnecessary visiting / gathering.
Rural
(3.5 families in 2019).
• Prioritize for family first: With the

80 80 • Diversify Gifting choices: Saving lingering impact of the pandemic,

time, cost, ... more people choose to balancing between family spending
74
give gifts online in various ways and gifting budget is also a financial
including cash transfer with the rise of concern for consumers in Tet.
Tet Tet Tet
E-wallet platforms in Vietnam.
2020 2021 2022

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities & Rural | FMCG Including Gifts
 Expectation for Tet 2023?
With the condition of less restricted travel policy next year, will Gifting
contribution bounce back in the upcoming festive season?

% Value Gifting in Tet 2022

(FMCG for in-home consumption only)

Urban 4 key cities Rural

Gifting

Household Purchase
23 31 26
29 26 32

Expected Gifting Expected Gifting

contribution in contribution in
Tet 2023 Tet 2023

20 – 23% 28 – 30%
74 77 69 74
71 68

Tet 2020 Tet 2021 Tet 2022 Tet 2020 Tet 2021 Tet 2022

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities & Rural | FMCG Including Gifts
 LAST-MINUTE SHOPPING
HINDERS TET VALUE
Tet 2022 was not the same what we all have seen
before. More people hold their Tet preparation up
until the last minutes. This hesitation in Tet shopping
might be a result of (1) prolonged lockdown and
isolation in Q3, (2) negative impact on earnings,
and (3) uncertainty over quarantine policies when
traveling from big cities to hometown.
This delay led to a more limited time and, therefore,
fewer chance for brands to get exposed to consumers in-
store. Shopping in a rush limited consumers from
browsing the store shelves. Shoppers would also tend to
shop with a specific shopping list in mind. If this trend
continues, it posses a strong need for brands to re-think
on shopper strategy in weeks leading to Tet holiday.

% Weekly Value Share of Tet - FMCG

Urban 4 key cities Rural

4 weeks ahead

20 19 20 16 17 17

3 weeks ahead 18 17 -10% value

-7% value 18 growth
21 22 20 growth
vs. YA
vs. YA
26 22
24 2 weeks ahead 29
26 28

1 week ahead +28% value

+22% value 40 45 vs. YA
33 30 36 36
vs. YA

Tet holiday
Tet 2020 Tet 2021 Tet 2022 Tet 2020 Tet 2021 Tet 2022

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities & Rural | FMCG Household Purchase
THE SETBACK OF
CELEBRATORY PRODUCTS
Urban 4 key cities Rural

0%
FMCG -4%

5%
Non-Alcohol Beverages -4%
-11%
Alcohol Beverages -13%
-4%
Confectionary -3%
% Value growth by sectors
– FMCG for in-home
consumption Dairy 13%
-1%
(Tet 2022 vs. Tet 2021) 2%
Cooking Aids 5%
Noodle & Soup 8% 17%

Personal Care -10% -2%

Home Care 5% 11%

It was a gloomy Tet in These categories were impacted by not only the On the contrary, the rising
both Urban and Rural decline of Gifting but also the stagnancy of demand for essentials (Dairy,
with celebratory household purchases for in-home consumption. The Cooking Aids, Noodles &
categories with main reasons were probably people avoided Soup) was witnessed,
Beverages and gatherings and celebrations even at home as they showing that Covid-19 has
Confectionary suffering are still afraid of infection, together with the strong shaped a new way to
the most. impact of Decree 100 on Alcoholic Beverages. celebrate Tet.

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities & Rural | FMCG Including Gifts
The arrival of Covid-19 boosted up consumer’s already- Top growing categories – Cooking Aids
(Based on % value change Tet 2022 vs. Tet 2021)
underlying needs for convenience. During the lockdown,
convenience became a necessity in every aspects in life:
shopping, entertaining, eating and drinking, connecting Ketchup

with others, etc., leading to changes in how people shop

and consume in Tet 2022. +23%
With restaurants and catering outlets being closed during Meal maker
social distancing periods, people experienced home-cook
and work-from-home or hybrid working schedule for a
+22%
long time. This created opportunities for eating solutions
Pasta
offering convenience, personalization, and at home dining
experiences. Therefore, Pasta and Ready-to-use Cooking
Aids such as Ketchup, Oyster Sauce, Meal Maker, +18%
Mayonnaise enjoys double-digit growth, driven by
Oyster sauce
Household Purchase for in-home demand.

Moreover, consumers also adopted new technologies and +16%

kitchen appliances such as air fryer, pressure cooker,
Mayonnaise
blender, plant-based milk maker – not only to ease the
pain of cooking but also to bring fun and creativity to the
kitchen. +15%

EASY &
Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Including Gifts

CONVENIENT
Air Fryer Microwave Frying Pan
Top searches for
cooking appliances +41% +12% +8%
*Search with Google 2021 COOKING
As Tet is all about togetherness and consumption targets include all family members, health rises as the top
priority. Over the past few years, definition on health has been evolving: from physical development to more
diversified motivations, such as body purity, health booster, digestion support, immunity. This sheds light on the
growth of Tea Bag or Drinking Yogurt during festive season.

At the same time, Ready-to-drink Tea registered positive performance. Despite remaining category’s barrier on
sugar content, more product offerings promoting body purity / immunity may influence on consumers’ perception,
leading to a more positive adoption for Tet.

In contrast, Carbonated Soft Drink and Instant Tea were heavily impacted by the decline of Gifting demand,
witnessed a setback of Household Purchases for in-home consumption.

Dynamics of Beverage Choices

(Based on % value change Tet 2022 vs. Tet 2021)

Tea bag

Beer Instant Tea

+24%
Ready to drink Drinking
Tea Yogurt
-15% -15%
Carbonated
Soft Drink
+12% +7%
TOWARDS
-15%
HEALTHIER
Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Including Gifts
CONSUMPTION
 PREMIUM
POLARIZATION

Would consumers continue to seek for

premium products in the context of a
toned down celebration? An analysis on
FMCG’s consumer price change showed
that consumers responded differently
across different categories.
Average Price Paid Change by Categories
25% (Tet 2022 vs. Pre-Tet 2022*)
20% Is your category relevant to
drive premiumization during
15%
Tet? What are the drivers?
10%

Confectionary categories (Biscuits,

5%
Snacks) still enjoyed premiumization
trend – consumers were willing to pay 0%
20% higher for an item during Tet 2022.
This indicate that consumers seek -5%

for quality and understand that quality

comes at a premium price. Meanwhile,
except for Soya Sauce, Cooking Aids
categories were under capturing this
movement. *Pre-Tet 2022: 5 weeks before Tet period.

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Household Purchase
 UNSTOPPABLE MOMENTUM
FOR MINI STORES & ONLINE
% Value share by channel – Street Shops and Hyper & Super
in-home FMCG % Value growth
in Tet 2022 vs Tet 2021 remained as the most important

6 2 4 5 shopping destinations, accounting

7 8 9 Online +48% up to ~ 70% of market value in Tet.
11
However, these bigger retail Is this growth driven by more
17 16
12 15 Mini Stores +12% traffics? Or shoppers also refer to
formats, together with Wet Market,
6 6 these channels for bigger SKUs?
6 5 only managed to sustain rather
8 8 7 Hyper & Super -4%
6 than registered growth. This was

Specialty Stores -12% driven by shoppers’ rising need for

Are discount and price perception
more convenient format, as well as
crucial factors to drive brand’s
Wet Market -18% the lingering fear of shopping in
54 55 54 55 purchase in such channels?
crowded places.
Street Shops +2%
Additionally, there was a clear shift
All channels +1%
in consumer spending from other
channels to Mini Stores & Online,
FY 2021 Tet Tet Tet
2020 2021 2022 but why?

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Household Purchase
BOOSTING ONLINE’S
RELEVANCY
In Vietnam, Online shopping platforms have % Value share of Online to in-home FMCG consumption
been involving thanks to massive investment
of key e-retail players. However, Online 6.1
contribution during Tet was lower than its’ 5.3
normal share in consumers’ spending wallet.

FY 2021 Tet 2022

% Weekly Value Share of Tet - FMCG

4 weeks ahead One of the reasons could be the low relevancy of

20 Ecommerce in pre-Tet final weeks. The last two weeks

23
account up to 60% of total Tet value sales for FMCG,
3 weeks ahead
20 while contributing only 50% to Online channel.
25

2 weeks ahead What can be shoppers’ barriers to make online

24
purchases? Is long delivery time an obstacle? Or is it
28
due to limited browsing experience?
1 week ahead

36
24 What are the leading categories to drive shoppers’
Tet holiday traffic during this critical time? How can
All Channels Online manufacturers better partner with Online platforms?

Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Household Purchase
THE RISING STARS
AN: Providing a lighter snack CRP* growth: +14%

Comparing with other Biscuits segments, Rice Cracker is considered as

a healthier choice for snacking moments with affordable price. An is
offered with modern packaging but brand name is local friendly,
capturing festive seasons with a wide range of Giftset collections.

AJI MAYO: Modernizing Tet’s Recipe CRP growth: +12%

Serving the trend of in-home cooking, dipping & convenicence products are
winning consumers’ choices. As a market leader of Mayonnaise category, Aji-
Mayo is driving digital support during Tet with communication focus on
modernizing Tet’s dishes, as well as helping children to eat more vegetables.

TEA+: Elevating Healthier Lifestyle CRP growth: +18%

Ready-to-drink Tea enjoys a more positive adoption during festive

season. Following an aggressive marketing strategy, TEA+ has been
positioning its products as a body purity & meal accompliment offer.
This message is well re-enhanced during Tet through new TVC and
activation, with the aim to promote for a healthier festive choice.

*CRP (Consumer Reach Point) = Penetration x Frequency x Population | % Change in Tet 2022 vs the same period LY
Source: Kantar | Worldpanel Division | Household Panel | Urban Vietnam 4 key cities | FMCG Including Gifts
 10 Key Shopper Insights
to remember about Tet

1. A Less Prosperous Tet 6. Towards Healthier Consumption

2. Gifting Tones Down, 7. Premium Polarization

yet Expects to Bounce Back

3. Last-minute Shopping 8. Unstoppable Momentum for

Mini Stores & Online

4. The Setback of 9. Boosting Online’s Relevancy

Celebratory Products

5. Easy & Convenient Cooking 10. The Rising Stars

Kantar is the world’s leading data, insights and consulting
company. We understand more about how people think, feel,
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For further information, please visit us at

www.kantarworldpanel.com/vn

Contributor

Nguyen Dinh Nam – Associate Account Manager

Worldpanel Division, Vietnam

Nguyen Van Vu – Marketing Executive

Worldpanel Division, Vietnam

Contact us

Nguyen Thi Nhu Ngoc – Senior Marketing Manager

Worldpanel Division, Vietnam
ơ

M: +84 988 445 401

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