Confectionery market for Tet 2014: Vietnamese goods dominate

There are only 2 weeks left until Tet. This is also the time when the Tet confectionery market enters the largest consumption season of the year. In general, this year, partly due to economic difficulties, domestic confectionery still dominates both in terms of variety and consumption.

Right after the New Year, the market for Tet goods has started to accelerate. Consumption has increased day by day in most products such as beer, soft drinks, candy, cooking spices, etc.

Vietnamese goods dominate 90% of the market

According to the reporter's observation, the consumption trend for these products this year has also changed more than in previous years.

Previously, confectionery used as gifts and for Tet holiday mostly originated from Thailand, Malaysia, Denmark, France, America and mostly mixed with Chinese goods, but in the past 3 years, some domestic confectionery brands have gradually regained the market and are chosen by many people.

Perhaps partly due to economic difficulties, reduced incomes, and consumers tightening their spending. But partly due to domestic manufacturers improving product quality, continuously launching many varieties with comparable quality and design but at prices only half that of foreign confectionery.

From the changing consumer tastes, the market also reacts quickly to meet the demand. Walking around candy stores and supermarkets, domestically produced candy with brand or Vietnamese brand currently accounts for 90%.

“For the past two years, foreign confectionery sales have been slow, especially those from China, so we have also limited our imports. Currently, the store mainly sells confectionery from famous domestic brands, with reasonable prices so it is easy to sell,” said Ms. Huong, owner of a mini supermarket on Khuong Trung Street (Thanh Xuan, Hanoi).

According to Ms. Huong, currently the price of imported boxed cakes has increased by 20-25% compared to last year, while domestic cake brands have increased by about 10-15%, so domestic products sell very well.

The trend of safe consumption among many consumers has helped many domestic enterprises invest heavily in production. Domestic branded cakes, jams, and candies are facing a bumper Tet season as orders have increased sharply compared to last year.

Meanwhile, according to statistics from the General Department of Customs, the amount of imported confectionery has decreased significantly. As of October 2013, the import turnover of confectionery and cereal products reached 185.6 million USD, down 24.79% compared to the same period in 2012. Products imported to Vietnam are mainly from Indonesia, Thailand, Singapore, Malaysia, China, and the US.

Food safety is top priority

The change in awareness from the campaign “Vietnamese people prioritize using Vietnamese goods” has had a direct and clear impact on the trend and consumer behavior of people in choosing trusted brands during Tet. Imported products of unknown origin or products from establishments that disregard quality and consumer health are no longer chosen.

In fact, recently a series of violations of food safety and hygiene in the production of confectionery in some craft villages and private establishments have been exposed, making consumers increasingly cautious when choosing.

According to many consumers, the thing they fear most is food hygiene and safety, so this year, they will only choose branded products with long-standing reputation instead of going to the market to choose delicious-looking and cheap things like every year.

Consumer caution and the inward trend towards reputable brands are opening up great business opportunities for honest businesses.

Domestic confectionery businesses are actively preparing for the Tet Giap Ngo market.

A representative of a famous confectionery brand in Ho Chi Minh City said that it is predicted that the consumption of confectionery this year will increase sharply, so from the beginning of October we have increased production capacity by 50% compared to the previous plan.

Ms. Tran Thuy Hoa, Head of Technical Planning Department of Hanoi Confectionery Joint Stock Company also said: As a long-standing brand of Hanoi, Hanoi Confectionery Joint Stock Company always focuses on product quality and constantly improves quality and design. This year, the total output of egg sponge cakes and various Tet jams of our company is expected to reach 500 tons, an estimated increase of 6-8% compared to the same period. This figure accurately reflects the consumption trend of people in early 2014.

According to many experts in the retail sector, this year, although the economy still faces many difficulties, the consumer market in general has declined significantly, purchasing power has decreased, but there is still a "door" for legitimate businesses, reputable brands will be chosen and welcomed by consumers./.

According to Dan Tri