With Lunar New Year 2025 just around the corner, the shopping atmosphere at supermarkets and shopping malls remains subdued. Consumers are still tightening their spending, forcing businesses to continuously launch promotional programs and discounts to stimulate demand.
Festive Beers Slash Prices
The most lackluster items are festive beers. Staff at beer stalls in several Ho Chi Minh City supermarkets reported that they have been selling Lunar New Year beers for a month now, but very few customers are buying. As a result, every few days, retailers and brands have to adjust prices downward to attract customers.
Earlier this week, Ho Chi Minh City supermarkets had a new round of price cuts for festive items such as beer, soft drinks, and New Year candies and cookies. In addition, beer buyers are eligible for gift-giving and lucky draw programs organized by the brands.
A survey of prices at several supermarkets found that most beer brands have been discounted. For example, Heineken is reduced by VND 15,000 to VND 429,000/crate, Tiger beer is lowered by VND 9,000 to VND 269,000/crate, and Saigon beer is discounted by VND 10,000 to VND 253,000/crate.
Abundant supply of festive beers at a supermarket in Ho Chi Minh City. Photo: Thanh Nhan
In Hanoi, the demand for festive beers at grocery stores and supermarkets is also rather quiet. Observations at supermarkets show an increasing number of promotional signs for beer, such as “buy 5 cans and get 1 free,” “buy a crate and get 5 cans free,” or discounts ranging from 5% to 10%, but these offers are failing to attract customers.
This is because many people have not yet received their Lunar New Year bonuses and wages, and there is a significant reduction in the demand for festive beers due to the strict regulations against drinking and driving. However, a seller on Hoang Hoa Tham Street (Ba Dinh, Hanoi) tries to entice customers by saying, “You should buy festive beers now because if you wait until closer to the New Year, the higher demand will push prices up” (?!)
Ms. Thao Anh, the owner of a grocery store on Nguyen Phong Sac Street (Cau Giay, Hanoi), shared that learning from last year’s experience, she has only imported a small quantity of festive beers this year, about 50 crates of popular brands. “Currently, customers who buy in bulk only purchase 1 crate or a few cans, so I don’t dare to stock up. As for the price, I offer a direct discount on the product to compete with supermarkets,” she said.
In terms of pricing, observations show that beer prices for the Lunar New Year remain stable, averaging between VND 300,000 and VND 450,000 per crate of 24 cans, depending on the brand. Some brands have increased prices compared to 2024, but not significantly, with increments ranging from VND 5,000 to VND 30,000 per crate to compensate for rising costs.
At convenience stores, festive beer prices are currently higher than at supermarkets. For instance, Heineken is priced at VND 446,000 per crate, VND 15,000 higher than at supermarkets, while Saigon beer costs VND 255,000 per crate, a difference of VND 2,000. At grocery stores, prices are even higher, with Tiger beer reaching VND 336,000 per crate and Heineken at VND 455,000, VND 26,000 more than at supermarkets.
Ms. Hau, a convenience store owner in Thu Duc City, Ho Chi Minh City, shared that last year, she imported more than 50 crates of various beer brands but only sold less than 20 crates during the Lunar New Year period. This year, she dares to import only about 10 crates for the festive season. “I only get a small quantity to have a full range of products. If customers are willing to pay this price, I will sell; if not, it’s fine,” Ms. Hau said.
Promotions Are a Must
In addition to festive beers, soft drinks are also being discounted, with price cuts ranging from VND 30,000 to VND 60,000 per crate. Similarly, candies and cookies are being reduced in price to attract early New Year shoppers. For instance, Merry box cakes are discounted by VND 44,000/333-gram box, Oxford cookies are lowered by VND 30,000/420-gram box, Cosy cookies are reduced by VND 15,000/330-gram box, Danisa cookies are cut by VND 22,000/box, and Lu cookies are discounted by VND 63,000 to VND 189,000/708-gram box. Notably, gift baskets sold in supermarkets are also being discounted, with price cuts ranging from a few dozen thousand dong to over VND 100,000 per basket, depending on their value.
Speaking to the Nguoi Lao Dong newspaper, Mr. Dinh Quang Khoi, Marketing Director of MM Mega Market, pointed out a distinct feature of this year’s festive market: consumers are particularly interested in promotional items, as evidenced by a 10% increase in promotional item sales at MM Mega Market compared to the same period last year. “Promotional item revenue accounts for nearly 40% of total sales, forcing businesses to continuously offer promotions; otherwise, it will be difficult to sell goods,” Mr. Khoi stated.
A representative of a major supermarket system reported that the demand for cookies and candies is increasing compared to the previous week. However, the best-selling items are cookies, candies, and dried fruits sold in bulk. To boost sales, many brands have collaborated with retailers to offer discounts of up to 15-30%. Major brands in the cookie and candy industry, such as Mondelez Kinh Do, Orion, and Bibica, have joined the price competition. For instance, Mondelez Kinh Do reduced the price of traditional cookies by VND 30,000 (now VND 241,000/box), and Cosy cookies are now priced at VND 165,000/box, down from VND 170,000.
Saigon Co.op’s representative shared that consumers tend to start their New Year shopping earlier this year, especially for non-perishable items like dried foods, candies, and nuts. To meet this demand, the distributor has launched early promotional programs tailored to different shopping phases, ensuring that customers feel they are getting the best deals. This approach also helps prevent overcrowding in the days leading up to the New Year.
Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, said that most businesses in the cookie, egg, meat, and rice industries have prepared 10-15% more stock for the festive season than last year. Anticipating a challenging market, many businesses have opted to reduce profits to maintain price stability. Notably, businesses selling perishable goods like meat and eggs under Ho Chi Minh City’s price stabilization program will offer deep discounts on the two days leading up to the New Year to support consumers.
Can’t Rule Out the Possibility of Price Inflation for Promotions
With the rise of promotional items and consumers’ tendency to choose discounted products, some retail experts worry about a potential adverse effect: businesses may inflate prices and then apply promotions to sell their goods. Ultimately, consumers may think they are getting a bargain but end up paying the regular price. “Recently, several suppliers have proposed price increases of 3-5%, and even 10%, which is also a sign of cost recovery, including promotional expenses,” a retail expert analyzed.
