Companies eye more affordable Tet gifts

Figures from several supermarkets show that purchases for Tet account for up to 30 percent of their revenues in the months leading up to the holiday.

Companies are trying to squeeze Tet gifts out of their budgets despite the economic downturn as the nation’s biggest holiday approaches in January.

Nguyen Thanh Hung, marketing director of Dai Dong Tien Plastic Joint Stock Company in Ho Chi Minh City, said the gifts are a means to show their respect and appreciation for business partners following a year of hard work.

Figures from several supermarkets show that purchases for Tet account for up to 30 percent of their revenues in the months leading up to the holiday. For food companies, that number could reach 50 percent.

Hung said his company would prefer to reduce the number of business partners on its gift list, but not the quality of the gifts.

“With VND500,000 (US$29) you can’t buy a gift hamper as large as you did last year,” Hung said. “This year we must give priority to our close and strategic partners.”

Bui Quang Thinh, deputy general director of HCMC Tan Tien Plastic Bags Joint Stock Company, said the company has been cutting back on marketing and other costs associated with mid-year festivals like the Mid-Autumn.

For banking, securities and insurance companies – who have been hit particularly hard by the economic turmoil – sending their business partners Tet gifts is essential.

“In case we don’t have enough money to spend on Tet gifts, we can even reduce some of our staff Tet bonuses,” Tran Minh Toan, general director of Sen Vang Stock Company in HCMC, said.

No, thanks

But some companies have said they will follow a policy of “not giving, not receiving.”

Nguyen Minh Hien, director of Thien An Company, which deals in fine art products, said his company has even written to its partners about this policy and got some positive responses.

“We’ve received thank-you letters from our importers in Europe and North America and they say they are not worried about not receiving Tet gifts,” Hien said.

As a result of the belt-tightening by some companies, imported wines, high-priced food products and some other items could see a fall in sales from last year.

Nguyen Van Thang, director of wine distributor Minh Anh Company Ltd, said his company has imported fewer expensive wines and more of those priced below VND1 million ($59) from countries like Chile, Portugal and Thailand.

The recent melamine scare from Chinese products might make local confectionary products more appealing this year.

Hoang Nhan Nam, deputy marketing director of Bibica Joint Stock Company, said his company plans to distribute around 5 million chocolate and confectionary boxes and expects sales to hit VND180 billion ($10.6 million).

Duong Thi Quynh Trang, public relations director for Big C Supermarket chain, said her supermarkets would offer free delivery and discounts on Tet gifts.

Online electronics retailer Golmart has sent out catalogues to customers, focusing this year on gifts priced VND500,000 to VND1 million.

Le Thi Duy Linh, Golmart sales director, said, “Golmart wants to help customers find more affordable gifts but still maintain the Tet tradition of giving gifts.”

Source: TBKTSG