Tết Nguyên Đán: Expectations and Reality for the Electronics and Technology Market

During the recent Lunar New Year (Tết Nguyên Đán) holiday, retailers of electronic and technology products were hopeful that after a challenging year with record-low purchasing power, the market would rebound as consumers typically buy new appliances for their families or reward themselves with a new phone after receiving their bonuses. However, the reality turned out to be different.

While the purchasing power during the holiday did improve, it was not significant enough to alleviate the inventory buildup. Coupled with products not sold from the previous year, the inventory of products doubled or even tripled compared to normal times.

According to preliminary statistics from retail systems of electronic goods, the inventory currently includes over 1 million TVs, over 700,000 washing machines, and about 800,000 refrigerators. Even seasonal products such as air conditioners have an inventory of up to 1 million units.

Similarly, computer brands and technology retailers are currently left with over a million laptops that have not been sold despite being available for the entire year. However, with many new laptop models using new chips being released in March, there is now pressure to heavily discount the older models.

The high inventory pressure forces manufacturers and retailers to find ways to sell their products as quickly as possible. “If we cannot sell the products, they will become outdated, we will have to heavily discount them, and this will result in loss-making trading. This year we face the challenge of not being able to create the trend or boost sales as we did in previous years,” said Mai Ngọc, a sales and marketing representative of an electronics supermarket in Ho Chi Minh City.

In addition to significant discounts, FPT Shop has diversified its sales channels and methods to reach more customers. “We adapt to the customers’ preferred purchasing method, from purchasing via phone, online ordering, to buying through social media platforms or livestream selling,” said a representative of the company.

Di Động Việt has also integrated various sales and cost-saving methods, such as trading-in old devices without additional payment, zero-interest installment plans, no upfront payment, no conversion fees, and no waiting time, all aimed at stimulating customers’ shopping needs.

Despite the active efforts of electronics and technology retailers to sell their products and reduce inventory, a survey conducted by Báo Người Lao Động at stores and supermarkets in Ho Chi Minh City revealed that the situation has not significantly improved since the Lunar New Year. Some stores even have no customers throughout the day, with only staff members present.

Even popular products such as air conditioners and cooling devices, which usually sell well during the hot season, are currently receiving little attention from customers. Ngô Thanh Phước, in charge of a consumer electronic store in District 10, shared his observations: “This year’s market is very different. Typically, after Tết, consumers usually buy a lot of products, perhaps because they were too busy before the holiday. However, the situation is the opposite now. Almost no one comes to buy anything, despite the deep discounts on many products.”