Enterprises expect "bumper crop" in Tet season

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Enterprises have plans to "launch goods" during Tet. Photo: Nguyen Thanh

Purchasing power will increase by 15-20%

From the beginning of the year to the middle of 2020, supply chain failures caused the business community to suffer heavy losses. By the end of the year, thanks to effective anti-pandemic capability, Vietnamese enterprises have gotten recovery momentum back.

Speaking about this issue, the leaders of Bibica Company said that due to the impact of the Covid-19 pandemic, the price of raw materials and accessories increased from 10% to nearly 30%, which greatly affected the business activities of enterprises.

However, after the supply chain was restored in the second half of the year, this company was able to return to normal activity without increasing product prices.

Mr. Nguyen Quoc Hoang, General Director of Bibica, said that during the Lunar New Year, the company planned to bring 3,000 tons of confectionery, up 29% over the previous year, with 80 different product categories.

This company launched such a large number because of high expectations on the consumption of the Tet crop with the purchasing power expected not to grow too strongly, but contributing greatly to the revenue of the company.

According to Mr. Hoang, the last Mid-Autumn Festival season, at the time of the pandemic peak, the consumption volume of the company decreased, but thanks to promotion and consumption strategies, it was still equal 90% of the previous year.

Like Bibica, many other companies are also putting a lot of expectations on the Tet market, so they have large reserves. For example, the Ho Chi Minh City Trade Co-operatives Union (Saigon Co-op) has prepared a full quantity of goods for the three months before, during and after the New Year with a total value of nearly VND5,000 billion, up nearly 20% compared to last year. Vietnam Food Industry Joint Stock Company (VIFON) is expected to increase about 20% of output for the Tet season compared to last year. This company also sets expectations on the consumption of products such as steamed fresh noodles, spices, sauces.

Saigon Food Company, although not launching new products, develops a new taste on old products, with the expectation that consumption is reported to increase by 30% compared to normal months and by 25% over the previous year.

Mr. Tran Duy Dong, Director of the Department of Domestic Market, Ministry of Industry and Trade, said that purchasing power in the domestic market at the end of the year and the Lunar New Year of 2021 will increase by 15-20%, in which focus will be on food products. According to a report from the Ministry of Industry and Trade, up to now, 33 of 63 provinces and cities plan to stabilize the market.

The total value of goods for Tet in Hanoi is about VND39,400 billion, an increase of about 5% compared to the plan of Tet in 2020. In Ho Chi Minh City it is VND19,680 billion, of which VND7,132 billion is spent to prepare sources to stabilize the market.

Change under market demand

In a new normal, consumers will pay more attention to health. A survey by Nielsen Vietnam, a market research company, showed that 49% of consumers said that health was a top concern, 65% said that they would be willing to spend more money to have healthy products. At the same time, 62% of consumers said that they would eat more at home. This is an opportunity for manufacturers and retailers to offer solutions to provide more convenient products and goods, and to deliver goods to consumers directly.

Understanding these trends, during the Tet season, enterprises have been trying to produce more diverse items with eye-catching packaging suitable to the demand and purposes of consumers.

In addition, many enterprises said that they also changed the sales methods and marketing. For example, Vietnam Animal Industry Joint Stock Company (VISSAN) has launched the online food business website VISSANMART, initially serving customers in Ho Chi Minh City. This form will feature flexible delivery and convenience in payment.

In addition, many enterprises said that they were also promoting sales through e-commerce websites. Typically, up to now, the amount of goods sold by Vietnam DalatFoodie Joint Stock Company has up to 80% of orders made online, with only 20% was direct orders. In addition, many enterprises also said that they linked and cooperated with logistics enterprises to enhance their forwarding capabilities and served customers across the country during the peak season.