Purchasing power recovers slowly, businesses increase year-end promotions

As of the end of October 2024, domestic consumption has not recovered as expected. Businesses are preparing for Tet while increasing year-end promotions.

Retail promotions attract customers at the end of the year

According to the Ministry of Industry and Trade , total retail sales of goods and consumer service revenue at current prices in October 2024 are estimated at VND 545.7 trillion, up 7.1% over the same period last year, mainly due to the food and foodstuff group increasing by 12.0% and the means of transport group (excluding cars) increasing by 21.4%.

In the first 10 months of 2024, the total retail sales of goods and consumer services revenue at current prices is estimated at VND5,246.2 trillion, up 8.5% over the same period last year (the same period in 2023 increased by 9.8%). Notably, excluding the price factor, the total retail sales of goods and consumer services revenue in the first 10 months increased by only 4.6%, the lowest since the beginning of the year and lower than the same period in 2023 and the period 2015-2019. This is the first time in the above periods that purchasing power increased by less than 5%. "The slow recovery of consumer demand, with a tendency to gradually slow down, continues to affect production and business activities. However, domestic consumption and production demand often increases in the last months of the year, contributing to promoting the growth of the service industry" - said the Ministry of Industry and Trade. At this time, manufacturing and retail businesses have entered the peak period. A representative of a confectionery manufacturing business commented that consumer demand has shown positive signs. The business has introduced new products to customers at points of sale. However, this person said that product prices this year tend to increase slightly due to the increase in prices of raw materials, electricity, water, and labor costs. To attract customers, manufacturers and retailers have discussed to include promotional programs, gifts, and customer appreciation. A representative of the WinCommerce retail system (the unit operating the WinMart supermarket system and WinMart+/WiN stores) said that consumer demand from now until Lunar New Year 2025 is expected to increase by about 20% compared to normal months of the year. “WinMart supermarket chain said it will increase supply for all product groups, helping customers feel secure in shopping at stable prices. To meet consumers' shopping needs, especially focusing on fresh products and essential foods, the retail chain has proactively cooperated closely with suppliers, ensuring prices and supply in the system are always stable,” said a representative of WinCommerce. Also on this occasion, this retail system will simultaneously conduct many promotional programs on the occasion of its 10th birthday, with discounts of up to 50% on many essential food items, household items, fashion , cosmetics, etc. Information from Co.op Mart also said that the supermarket is having a promotional program "Best seller, good products with deep discounts" and "Big bags of goods, small prices" with fresh fruit, fashion clothes, etc. The Ministry of Industry and Trade also added that from now until the end of the year, the Ministry will continue to coordinate with local ministries and branches to closely monitor market developments, ensure adequate supply of essential goods to serve people's needs, especially during peak holidays and Tet, to avoid shortages and price hikes; Continue to coordinate with ministries and branches in advising on price management of state-managed goods, including gasoline, to ensure gasoline supply on the market, contributing to controlling general inflation according to the Government's target. Source: https://www.anninhthudo.vn/suc-mua-phuc-hoi-cham-doanh-nghiep-tang-khuyen-mai-cuoi-nam-post595807.antd