Tet market: Enterprises increase promotional programs to boost consumption

There is only a week left before the peak business season of the year ends. The Tet market this year has seen fierce competition among producers by reducing the price of their products and giving valuable gifts, some products are even sold at cost prices in order to boost consumption.
Sweetmeat for Tet holidays sold at a supermarket. (Photo: SGGP)
Sweetmeat for Tet holidays sold at a supermarket. (Photo: SGGP)

At this time, most manufacturing and trading enterprises in general and enterprises participating in the price stabilization program in Ho Chi Minh City, in particular, have almost completed their preparation of goods for Tet holidays. Besides preparing goods to supply for the market, price-stabilized enterprises also have to stockpile a large amount of goods to maintain the balance between supply and demand and price in case the market signals change.

Mr. Phan Van Dung, Deputy CEO of Vissan Joint Stock Company, said that by January 15, his company had produced and provided the market with various types of processed food which accounted for more than 90 percent of its plan for Tet holidays. The consumption rose by 10-25 percent, depending on each product, compared to normal days. The prices of processed food products of Vissan are quite stable. As for fresh food, such as pork, Vissan has been collaborating with farms and distributors to meet as much as the rising demand in the next days.

At supermarkets, including Vinmart, Mega Market, Big C and Co.opXtra, various types of goods are displayed on shelves with stable selling prices. Ms. Kim Phuc, who is in charge of the fresh food sector of Vinmart Thao Dien, said that the supply of fresh food, especially pork, chicken, seafood, aquatic products, vegetables and fruits, for Tet holidays will not be insufficient. As for pork, its price is not only stable but also slightly drops as the demand for pork is low. For instance, the supplier MeatDeli has offered a discount of 10 percent for all products from January 14 to 24. Similarly, Co.opmart and Big C have also sold pork at cost prices to stimulate consumption.

The amount of goods arrived at wholesale markets and traditional markets has strongly increased compared to normal days. The products that have been prepared in large quantities by traders include sweetmeat, pickled foods, ready-made clothes and footwear. Some grocery stalls at retail markets also increased many products, including bamboo shoots, glass noddle, cloud ear fungus, shiitake mushroom, Stachyphrynium placentarium leaves and bamboo strips for wrapping of banh chung. The stores that specialize in selling Northern food have started to sell pork jelly, pickled shallot, braised carp with galangal sauce, and glutinous rice. At the same time, they also receive orders and deliver many types of food during peak days of Tet holidays.

Many people said that the business situation before the lunar New Year is quite subdued, possibly because of saturated purchasing power or late start-up. This is a subjective opinion as the purchasing power of Tet goods concentrates at supermarkets and shopping centers. At many supermarkets, the number of customers going shopping there also rose by 30 percent compared to normal days. Purchasing power is expected to explode in the next weekend. Therefore, supermarkets also made plans to provide goods to meet well the shopping demand of customers.

Tet market this year continues to vibrant with the presence of more and more products from other countries as from 2018 to now, several tariff lines have been reduced upon commitments of bilateral and multilateral free trade agreements between Vietnam and other countries, in which, several tariff lines are cut to zero to 3 percent, having created more options for consumers when shopping, especially Tet goods.

To answer the question of why the purchasing power of Tet goods gathers in supermarkets, Purchasing Deputy General Director of one of the largest retail channels in Ho Chi Minh City said that producers have started a promotion race to declare their brands, especially products with foreign factor.

Besides collaborating with suppliers to run promotional programs, supermarkets themselves also offered a discount of 10-30 percent of their private label products to attract customers. According to experts, running promotional programs will give benefits to consumers but in the long term, manufacturers and traders will be exhausted as discounting also means that they have to cut a part of their profits.

According to forecast by ministries and departments, purchasing power during Tet holidays will climb by 30-50 percent compared to normal months and by 10-15 percent over the same period last year. By preparing goods early, the municipal departments hope that the market will not experience a shortage of goods or price hike during the festive season.