Efforts to boost consumer demand at year’s end

Various sectors of commerce and services in HCMC have been actively searching for strategies to stimulate consumer spending, particularly during the peak periods of the New Year and the Lunar New Year in 2024.
Customers buy vegetables at Co.opmart supermarket in HCMC.

Customers buy vegetables at Co.opmart supermarket in HCMC.

Some businesses have rolled out a range of significant discount programs and competitive pricing strategies.

Reducing profits to share with customers

As 2023 draws to a close in just over two months, amidst the flurry of preparations by the people, various retail chains such as Co.opmart, Satra, Go!, BigC, and MM Mega Market are ramping up their promotional campaigns with substantial discounts on a wide range of items, including rice, cooking oil, meat, fish, vegetables, cosmetics, and more. Discounts of approximately 49 percent on certain products are expected to drive robust sales during the peak shopping season of the year.

A representative from the MM Mega Market system expressed their willingness to reduce profits to share difficulties with customers. Ms. Nguyen Thi Bich Van, Communications Director of the Central Retail Group in Vietnam, confirmed that they intend to maintain fair pricing across a range of promotional programs to encourage end-of-year spending by consumers.

A spokesperson from the Co.opmart system revealed their proactive efforts to stimulate consumer spending, which include maintaining fair prices alongside enticing promotional programs and subsidies. Reports from Ba Huan Company confirm that egg prices in supermarkets and marketplaces remain stable, thanks to an ample supply. Vinh Thanh Dat Food Company also consistently applies discounts of 10-20 percent across their retail channels.

Mr. Truong Chi Thien, General Director of Vinh Thanh Dat Food Company, has noted a substantial drop in egg purchasing power from the beginning of this year until now, with a decrease of approximately 15 percent compared to the previous year, particularly for eggs used in processing and baking. Many businesses are optimistic that reducing profits to share difficulties with customers will enhance purchasing power.

Joining hands to welcome customers

Businesses anticipate that the festive atmosphere of family reunions will enhance year-end purchasing power, especially during the 2-3 weeks leading up to the Lunar New Year.

According to Mr. Nguyen Nguyen Phuong, Deputy Director of the HCMC Department of Industry and Trade, year-end shopping and consumption demand tends to increase significantly compared to the usual, prompting most shopping centers and businesses to prepare Tet goods well in advance. The Department has also partnered with the HCMC Department of Tourism to promote and attract both domestic and international tourists to enjoy shopping and entertainment in HCMC during the year-end season.

Some economic experts predict that the local customer group, including residents living and working in HCMC, collectively engaging in leisure and shopping activities within the city, will significantly boost the year-end consumer market. Expectations also extend to overseas Vietnamese visitors as well as domestic and international tourists.

Consumers are waiting to purchase discounted food products at the Emart supermarket in Go Vap District, HCMC.

Consumers are waiting to purchase discounted food products at the Emart supermarket in Go Vap District, HCMC.

Mai Tu, a small trader at Binh Tay Market in District 6, mentioned that dried fruits, dried shrimp, one-sun-dried squid, and other products are of great interest to tourists from the Central Highlands and the North. Independent travelers from Australia, Germany, and other countries also appreciate the freshly ground coffee beans sold directly at Binh Tay Market. Many international tourists visit Ben Thanh Market in District 1 and An Dong Market in District 5 to explore and purchase textiles for clothing and specialty dried fruits. This is indeed a promising sign that provides further motivation for business owners.

To support local businesses, market management boards have actively assisted by guiding vendors in promoting their products through platforms like Zalo, TikTok, and Facebook. For instance, An Dong Market even hires videographers to promote consumer goods and local specialties on social media.

Mr. Tran Quang Duy, CEO of Penguin Travel Company, states that the cooperation between various departments, especially the Department of Industry and Trade and the Department of Tourism of HCMC, is playing a crucial role in attracting visitors and gradually boosting purchasing power. For the long term, it is essential to enhance service quality at traditional markets, address price gouging concerns in retail and street vending, and establish connections between shopping centers and shopping areas while diversifying unique product categories at reasonable prices.

According to estimates of departments and agencies, tens of thousands of tons of various goods and food items will be supplied to consumers in HCMC during the peak year-end shopping season. Additionally, there will be dozens of tours and travel routes that will take visitors to explore various attractions and entertainment venues within the city.

Goods are actively being prepared in various factories for delivery to supermarkets and shopping centers. Several neighboring provinces and regions, including Lam Dong and the Mekong Delta, are also gearing up to supply their products to wholesale and traditional markets in HCMC. An exciting year-end shopping season is eagerly awaiting consumers and businesses.

Statistics from the HCMC Statistics Office reveal that the city's tourism revenue for the first nine months of the year is estimated to have reached VND125.29 trillion, a 35 percent increase compared to the same period in the previous year.

The total retail sales of goods and consumer service revenue are estimated to have exceeded VND871 trillion, up 8.6 percent year-on-year. This growth trend is expected to persist, influenced by rising basic wages.

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