5 holiday insights on year-end consumption trend

10:07 | 29/07/2020 Trade

Ahead of the year-end holiday season, Facebook commissioned YouGov, a global public opinion and data company, to conduct an online survey of shoppers across Southeast Asia in December 2019 to Feb 2020. In addition, Facebook also analysed a variety of third-party sources from GlobalWebIndex, as well as Facebook conversion and conversation data from October 2019 to March 2020.

Facebook’s report has pointed out 5 typical year-end consumption trends and the way Covid-19 shaping the attitude of Vietnamese consumers.

Gen X and Boomers are key driver of online and mobile shopping. In Vietnam, 62% GenX and Boomers surveyed in Vietnam care about “Shop Online, Pick Up In-store”; 70% admit to messaging a business during year-end season. At a global scale, shopping through mobile devices has become more and more popular, with 65% of those Gen X/ Boomers surveyed globally are spending more time using mobile since the start of Covid-19. For Boomers, mobile research during holiday has grown by 20% YoY in 2019.

Mega Sales days and Tet are even more relevant now. In Vietnam, 82% of year-end shoppers agree that they look out for sales and bargains during year-end season, whose conversations start building from up to 10 days prior to the Mega-sale. 70% of shoppers surveyed in Vietnam say that Tet is the time to find the best deals. In fact, businesses in Vietnam reports increased number of orders by almost 2-3 times compared to normal days upon 3 biggest shopping day: Nov 11, Black Friday (last Friday of November) and Dec 12.

“Self-gifting” acts drive consumption during year-end. Treating oneself with some “small luxuries” reflects the way people approach mega sale days and shopping for Tet. In Vietnam, 8 in 10 year-end shoppers look to reward themselves with apparel, confectionery, food, household appliances and health & beauty across the season.

Covid-19 reinforces product exploration and omnichannel shopping experiences. 77% of year-end shoppers surveyed in Vietnam agree that they often explore different product categories during the holiday season than they do the rest of the year. 79% of those surveyed in Vietnam say they are very or quite likely to try new brands when shopping for the Tet season.

During Tet season, omnichannel shopping experiences is very important for Vietnamese users, particularly given the current pandemic context. 82% of Tet shoppers surveyed in Vietnam say they often research things they want to buy online before purchasing them in shops; and even when in store, 39% of shoppers specifically turn to social media.

Consumers value not just affordability but also the brand’s alignment with their personal values. 40% year-end shoppers in Vietnam wanted real, authentic and informative content. They want brands to be “smart” and “reliable”, rather than “young”, and consider videos that show the product virtually most useful for making purchase decisions. Regarding the habit of giving money as gifts during Tet holiday, cash is still prominent, however, contactless options are gaining traction among younger generations due to ease and safety.

Brands should take advantage of the power of social media to increase their customer interests and conversion

Sharing the report on consumers’ attitudes and behaviors at year-end and Tet holiday, Facebook recommends new approaches for businesses to attract consumers and drive sales.

For Gen X and Boomers, brands should build a personalized and large-scale content strategy, tailoring relevant message to enhance the customer interests and conversion.

Discounts and promotions will continue to play a significant role as users have pushed back their purchase decisions due to Covid-19. Conversations around specific Mega-Sales start building from up to 10 days prior and brands need to be prepared themselves with consumer shopping behaviors early to meet the customer’s needs.

Brands should give consumers more reasons and beliefs to reward themselves through relevant content and well-rounded customer consultation and care policies.

Brands should take a bold move to reach new customers with omnichannel marketing strategy and take advantage of the power of social media to increase their customer interests and conversion.

Brands should always be honest with customers, try new interactive formats like shopping via Live, games, leveraging celebrities, KOLs on social media.

In 2020, Facebook has launched Facebook for Vietnam campaign, the first comprehensive Vietnam specific campaign to reinforce Facebook’s long-term commitment to the country, especially during and after the Covid-19 epidemic. Among 5 pillars of #fb4Vn is #fb4Economy to underline Facebook’s contribution to business communities, especially SMBs, and promote tourism and education post-Covid in Vietnam.

In the upcoming time, to further support SMBs in Vietnam, Facebook will launch the “Holidays Unboxed” with a series of activities lasting over the course of 2 months, with the view to providing information and supporting businesses to prepare for the busy year-end and Tet holiday. Activities include: Launching on 30 July 2020 on Facebook Vietnam page, providing key insights on trends and consumer behaviors in the year-end shopping season; a series of workshops with experts from big companies in Vietnam; launch the official website of the program, providing consumer and platform insights to help businesses best invest their budget; dedicate domestic travel/domestic solution training with Bao La Viet Nam creative assets. Besides, Facebook will also host the Messenger Summit Vietnam in August to provide in-depth solutions for business to leverage messaging trends.