Tet 2023 Vietnamese consumer optimism

Richard Burrage
Dec 07, 2022

Tet 2023 Vietnamese consumer optimism

Tet 2023 Vietnamese consumer optimism is high. Tet is the most important holiday season in Vietnam and is a celebration of the arrival of spring, the start of the lunar new year and the hopeful commencement of good fortunes. It is a time of bringing family together and renewing expectations for health, happiness and prosperity.

For the foreign reader unfamiliar with the lunar new year, Vietnamese over 60 years old in Vietnam consider Tet as their birthday. Historically individual birth dates held little relevance as there were few means available for an individual celebration. All children were considered aged one at birth and their next birthday was the forthcoming Tet. Tet is therefore akin to a national birthday celebration bigger than an individual birthday, a Thanksgiving and a Christmas celebration combined.

Understanding TET and the cultural mores and rituals around this celebration is critical for marketing teams. You can find more reports on TET cultural attitudes and marketing efforts at www.cimigo.com, specifically;

Vietnamese mums yearn for appreciation at Tet

 

 

 

Mums and Tet     

 

Vietnamese teens build deep connections at Tet

 

 

Teens and Tet

 

 

Vietnamese Tet and consumer packaged goods

Tet celebrations and the renewal of hopes for the lunar new year ahead have a significant impact on sales for many consumer packaged goods and beyond in Vietnam. Consumer expenditure is double that of a typical month in the run-up to TET. In part for gifting to those whom consumers wish to show their respect to (in both family and business) and for enjoying time at home with extended family and guests.

For many consumer goods companies, winning or losing at Tet will make or break their annual sales. Spirit brands will see up to 60% of their annual sales in the 6 weeks leading up to Tet. Beer will see up to 30% and Tet related categories of; soft drinks, biscuits and candy will experience significant spikes. The process of renewal will also see consumers undertake a personal and household renewal process, pushing sales higher in personal care, fashion, household care, home appliances and building materials (as many will undertake renovations and renewal of their homes prior to Tet).

Vietnamese Tet survey approach

In this report, Cimigo explores expectations for the coming Tet (the first day of the lunar new year is on the 22nd of January 2023). This will be the year of the cat.  557 consumers were interviewed online. The respondents are male and female aged 18 to 45, in HCMC, Hanoi and Danang. Cimigo conducted an online survey using our own online communities, to uncover:

  1. Vietnamese household and personal income momentum and expectations.
  2. Vietnamese consumers’ expectations on expenditure and shopping behaviour for Tet.

Download the report here

Strong optimism toward Tet for Vietnamese consumers 

Tet 2023 Vietnamese consumer optimism

Consumers expect that their income and quality of life will improve over the coming 6 months. More expect bonuses than last year and most expect higher bonuses.

The additional expenditure in the run-up to Tet is expected to nearly equal a normal month’s expenditure at VND6,790,000 (US$266) and amongst higher-income households earning VND15,000,000 or more per month the extra Tet expenditure will be higher than a normal month’s expenditure at VND11,749,000 (US$461).

 

Tet shopping channels in Vietnam

Supermarkets and wet markets are the main channels for shopping for Tet. Online shopping performs better for personal care compared with other categories. 

Tet 2023 Vietnamese consumer optimism is high and consumers expect to spend more on travelling and shopping, especially for durable items such as mobile phones, motorbikes and appliances.

 

Download the report here

Tet brand associations in Vietnam

Tet brand associations in Vietnam

 

Coca-Cola (soft drinks) and Kinh Do (biscuits) are the brands spontaneously associated with Tet. Family reunions and sharing with loved ones are the main themes expected to touch consumers’ hearts in Tet marketing activities.

 

 

Download the report here

March 2023 update with actual retail sales:
Vietnam retail sales over Tet grew by 27% over 2019

Comparing sales to Tet in 2019, as a pre-pandemic norm, sales of retail goods increased by 31%, reaching approximately US$51 billion (1,185,826 billion Vietnam dong).  Sales in tourism, hospitality and services grew 15% reaching approximately US$14 billion (324,149 billion Vietnam dong).

Retail sales of goods and services in Vietnam combined grew by 27% over Tet, compared to 2019.

The chart compares retail and service sales over the Tet period. Sales are combined for the months of December (prior year), January and February (current year) given the varying lunar new year date. 

Vietnam retail sales over TET grew by 27% over 2019

End.

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Working with Cimigo has been incredibly rewarding. Their exceptional service and unwavering commitment to excellence have been truly impressive. Together, we've successfully completed projects ranging from fabric care like detergents and fabric softener to home essentials like floor cleaner and dishwashing liquid in both urban and rural settings, showcasing Cimigo's versatility and dedication to reaching diverse markets. Thanks to Cimigo's dedication and expertise, we secured a major project with our client last year. I'm grateful for our partnership and excited for future collaborations.

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Cimigo conducted a large, nationally representative demand forecasting study in Vietnam for us, including a discreet choice component, to assess demand for potential new male contraceptives in development to support funding decisions by The Bill & Melinda Gates Foundation. The research was additionally complex by linking interviews with men and separate interviews with their female partners. The Cimigo team was were professional, knowledgeable and adaptive through the process of understanding our needs and collaborating to find solutions that would work, resulting in a very successful study.

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I've had the pleasure to work with Richard and Cimigo over many years and across multiple markets. Cimigo was a key partner in our business decision making process including market entry strategy, brand positioning development, shopper insights, brand equity tracking, and consumer need state segmentation development. The Cimigo team are local market experts who understand consumer culture like no other. I would highly recommend them.

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Cimigo is our go-to agency in Indonesia. They're great collaborators, work hard to meet our deliverables, and are a joy to work with.

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Cimigo is the research agency that I appreciate for their expertise and customer service. Cimigo understand well the business context for each of project hence they can design the research to best fit with the objectives. The optimization on methodologies, sample size and questionnaire bring the value to the projects I have worked with them. Cimigo can go beyond data and give me valuable insights for each of research projects based on their knowledge and experience with the industry. All of these support me well to navigate the brand strategy in short term and long term.

Hanh Dang - Product Marketing Manager

We partnered with Cimigo on assessing TET campaign launch focusing on improving booking through our platform. Cimigo, provided its customized campaign evaluation technique based on Cimigo Online Communities that fully meets our requirement in terms of type of respondents and expected timelines. The report provided insightful findings with benchmarks to identify the next course of action for launching the campaign. We will recommend Cimigo team and its Online communities for its quality reporting and scale of coverage.
We partnered with Cimigo on assessing TET campaign launch focusing on improving booking through our platform. Cimigo, provided its customized campaign evaluation technique based on Cimigo Online Communities that fully meets our requirement in terms of type of respondents and expected timelines. The report provided insightful findings with benchmarks to identify the next course of action for launching the campaign. We will recommend Cimigo team and its Online communities for its quality reporting and scale of coverage.

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Cido have worked with Cimigo in Vietnam for more than 10 years. All our projects, both qualitative and quantitative, have been delivered in a timely manner with a high standard of quality throughout. Cimigo’s client service team has provided great support over the years which has ensured smooth project execution and helped us to deliver work on time and exceed our client’s expectations.

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I have partnered with Cimigo over the past 15 years. Most recently Cimigo engaged us to collaborate on an unusually tough new product development project, which was akin to selling ice to Eskimos. Cimigo bought alive the consumer, her shopping journey, her cooking rituals and potential brand promises. Cimigo inspired our creative team to build alternate brand propositions and accompanying package designs. Cimigo then went back to consumers to evaluate, iterate and optimise these in focus groups. The Doodle team were able to observe this process and subtly adjust the expression of the brand between focus groups. The result of this great collaboration was a winning brand proposition and packaging design that hit consumer needs head on whilst appealing to their hearts.

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We have worked together with Cimigo many times. The findings from Cimigo are factual, accurate & reliable. They deliver value from the voice of our customer so we can easily determine the next step. Working with Cimigo feels like not only building a partnership but a sense of family. Very amazing to work with Cimigo, they always go beyond our expectations.

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Cimigo digs deep to understand the key issues we need to address. Then, they quickly customize a highly suitable research approach to provide us the insights we need to achieve our breakthrough business targets. From tough questions to aha answers in just a few easy conversations!

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Our relationship with Cimigo goes back many years. We engaged Cimigo to provide an independent view on what our customers and potential customers think of our company. The insights from Cimigo were very helpful for us to better understand the Vietnam market and also in developing our brand manifesto.

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As a creative director I have used the services of Cimigo for the past 15 years when developing communications, so I know their style, innovations and resources well. Most recently we tested copy for print, out of home and digital communications to put an Australian colloquialism into a Vietnamese context. A job and budget so small I felt it was highly likely to fall through the cracks. I was astounded at their incredible response. From their advice and style of how we should present the stimulus material, to their cross-reference manoeuvres used in the testing. Their over-delivering response, was to an embarrassing level. We walked away with a clear winner and could present back to our client with confidence and clarity. Cimigo made us look great. Plus they even threw in a few extra insights on the awareness and perception of the product in Vietnam.

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Cimigo have built and managed both our employee and customer experience programme since 2012. We have a complex suite of services with in-patient, out-patient, surgical, diagnostic, consultative and facilities to account for, all amongst patients who are naturally sensitive regarding their privacy and experience. Yet Cimigo have designed a system to measure customer experience across multiple languages and cultures and direct us in improving this experience. Our net promoter score (NPS) has grown as a direct result of changes implemented based on this direction and continuously listening to patient feedback. The NPS growth correlates directly to new patient numbers and improved profitability, as happier customers drives our business growth.

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Cimigo designed a customer experience programme for Coats that reached into Vietnamese, Chinese and Korean customers across various levels of seniority. Cimigo instilled the importance of the voice of the customer within our executive committee. This led to fundamental changes in our structure, services and speed to market. Significant investments were made behind these improvement programmes, for example in reducing delivery times and in managing specialised custom orders, which in turn have led to improved revenue streams and higher margin sales.

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Cimigo - The best “Glocal” market research firm in Vietnam with whom we have developed a great partnership since many years. While the quality of research and findings are of top standard, the added advantage being the local insights that Richard and his team are able to provide in helping us make important decisions.

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I respect Cimigo not only because of their dedication, meticulousness, and high-quality services but also how much they care about the local community here. I proposed the idea of doing a survey with the digital young generation on the topic of social impact and leadership. I wanted to identify, shape, and develop our content so that could really speak to the heart of the problems and empower young Vietnamese to take action on social impact in Vietnam. The Cimigo team agreed pro-bono to help without hesitation. The research findings are truly helpful in providing us a deeper understanding of our targeted audiences, what they need and are concerned about in life. The results show us how we can help them to achieve their goals and dreams. It is no longer a shot in the dark!

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Cimigo consistently carries out researches with international standards and consistently bring about truly mind opening local insights.

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Cimigo not only delivered an exceptional piece of qualitative research for us, but provided hugely valuable direction when it came to product development and market positioning which we have since implemented. We can’t wait to work with the team again.

Thuy Le - Consumer Insight Manager

Pharmacity started a Brand Health Check with Cimigo in 2020 and we were immediately impressed with their great consultancy and supportive spirit. The study had interesting analysis and insights which helped us efficiently shape the marketing plan and direction moving forward. We are now working with Cimigo on a tracking basis to continuously monitor and foster our brand performance.
Pharmacity started a Brand Health Check with Cimigo in 2020 and we were immediately impressed with their great consultancy and supportive spirit. The study had interesting analysis and insights which helped us efficiently shape the marketing plan and direction moving forward. We are now working with Cimigo on a tracking basis to continuously monitor and foster our brand performance.

Richard Willis - Director

When we were looking to develop one of the worlds the leading economic indicator in Vietnam, the Purchasing Managers’ Index™ (PMI®) Cimigo showed an immediate understanding of our needs and showed their understanding of the Vietnamese market. IHS Markit has now been working with Cimigo since 2013. Every month Cimigo continues to provide high quality data, a representative panel, on time data and great customer service. We look forward to many more years of working together.
When we were looking to develop one of the worlds the leading economic indicator in Vietnam, the Purchasing Managers’ Index™ (PMI®) Cimigo showed an immediate understanding of our needs and showed their understanding of the Vietnamese market. IHS Markit has now been working with Cimigo since 2013. Every month Cimigo continues to provide high quality data, a representative panel, on time data and great customer service. We look forward to many more years of working together.

Ha Dinh - Project Lead

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I have worked with CIMIGO on educational research for over 4 months. This is extremely impressive to me by the way CIMIGO approaches, cooperating and supporting me during the research launched. Specifically, the design for both qualitative and quantitative research are practical and logical with accurate questionnaires and appropriate interviews methodology for different respondents. Moreover, the outcomes of this research helps us to recognize our opportunities in the current English Language Training Market and understand profoundly our customer needs, behaviours and expectations when sending their children to us.

Geert Heestermans - Marketing Director

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Cimigo is and will be our strategic research agency. We are happy with your work and the way our projects are handled. You walked the extra mile and we are grateful for that.

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Just to say a huge thank you for all of the film footage. We are absolutely delighted with it all. The Vox Pops are really interesting and have turned out very well – those ladies were great at talking spontaneously. Cimigo did a great job. Thank you for your patience and perseverance with getting this off the ground.

Aimee Shear - Senior Research Executive

We partnered up with the Cimigo team on what was a particularly challenging project – we were faced with numerous timeline delays and logistical concerns – yet Cimigo were incredibly accommodating through their patience, flexibility and commitment. Not only were Cimigo supportive during the set up of our project, but we were really impressed by the outputs delivered – Cimigo were insightful, rich and very comprehensive. Cimigo were brilliant partners to work with and we look forward to working with them again.
We partnered up with the Cimigo team on what was a particularly challenging project – we were faced with numerous timeline delays and logistical concerns – yet Cimigo were incredibly accommodating through their patience, flexibility and commitment. Not only were Cimigo supportive during the set up of our project, but we were really impressed by the outputs delivered – Cimigo were insightful, rich and very comprehensive. Cimigo were brilliant partners to work with and we look forward to working with them again.

Dennis Kurnia - Head of Consumer Insights

Over the last 5 years I have worked with Cimigo on a wide array of projects, ranging from market segmentation to product testing. At all times, I found Cimigo to be swift in response and providing high quality insights and business recommendations applicable to our business. Furthermore, I am satisfied with Cimigo fieldwork quality despite the crunched timeline that we had in some projects. Overall, I highly recommend Cimigo for their professionalism.
Over the last 5 years I have worked with Cimigo on a wide array of projects, ranging from market segmentation to product testing. At all times, I found Cimigo to be swift in response and providing high quality insights and business recommendations applicable to our business. Furthermore, I am satisfied with Cimigo fieldwork quality despite the crunched timeline that we had in some projects. Overall, I highly recommend Cimigo for their professionalism.

Tania Desela - Senior Product Manager

It was a pleasure working with Cimigo. Their expertise in consumer and market research was a significant benefit as they assisted our organization in understanding our market position in more detail and validating our hypothesis in go-to-market strategy. We were more than happy with the findings and would definitely recommend Cimigo.
It was a pleasure working with Cimigo. Their expertise in consumer and market research was a significant benefit as they assisted our organization in understanding our market position in more detail and validating our hypothesis in go-to-market strategy. We were more than happy with the findings and would definitely recommend Cimigo.

Thu Phung - CTI Manager

Cimigo is not the type of agency that "fill in the template", but it's customized as per the needs and expectations of Client. Cimigo makes research interesting by applying new approaches to address the business issue, for example, it's known by default that product test is CLT, but at Cimigo, we did group debate for deeper understandings and insights and that resulted as a winning product which is selling well in the market. Last but not least, Cimigo makes me understand that research is a journey, not just a project."
Cimigo is not the type of agency that "fill in the template", but it's customized as per the needs and expectations of Client. Cimigo makes research interesting by applying new approaches to address the business issue, for example, it's known by default that product test is CLT, but at Cimigo, we did group debate for deeper understandings and insights and that resulted as a winning product which is selling well in the market. Last but not least, Cimigo makes me understand that research is a journey, not just a project."

Linda Yeoh - CMI Manager

We have worked with Cimigo over 2 projects in Vietnam. Cimigo has proven to be reliable being on top of the projects, managing different stakeholders and business objectives. They are flexible in terms of ways of working and are able to cope with last minute changes. The research findings (Quant + Qual) have helped us understand Vietnamese in a deeper level, allowing us to make clear decisions to be successful in the market. Thank you Cimigo team for supporting us.
We have worked with Cimigo over 2 projects in Vietnam. Cimigo has proven to be reliable being on top of the projects, managing different stakeholders and business objectives. They are flexible in terms of ways of working and are able to cope with last minute changes. The research findings (Quant + Qual) have helped us understand Vietnamese in a deeper level, allowing us to make clear decisions to be successful in the market. Thank you Cimigo team for supporting us.