Despite Inflation Consumer Spending for Chinese New Year to be Similar to Last Year in Southeast Asia

54% of respondents expect that their overall spending for Chinese New Year this year is likely to be higher than the last, says Milieu Insight research.

Despite Inflation Consumer Spending for Chinese New Year to be Similar to Last Year in Southeast Asia

54% of respondents expect that their overall spending for Chinese New Year this year is likely to be higher than the last, says Milieu Insight research.

With Chinese New Year coming up, brands are looking for ways to resonate with consumers during this annual celebration. Recent research from Milieu Insight in a study of 5,000 respondents from Singapore, Thailand, Vietnam, Malaysia, and the Philippines reveals how much they intend to spend on food, entertainment, beauty, and apparel in preparation for Chinese New Year.

According to Milieu Insight, “54% of respondents expect that their overall spending for Chinese New Year this year is likely to be higher than the last. Despite the inflation, intention to spend on each category remains largely similar to last year’s.”

The report offers consumer insight on travels well finding that most Southeast Asians will spend CNY in their home countries, 11% of Singaporeans intend to spend the long holiday overseas.


 

Milieu Insight prepared a summary of the report with some key highlights below.


Singaporeans, compared to other Southeast Asians, are more likely to spend Chinese New Year overseas

  • In most Southeast Asian countries, majority of people are looking forward to celebrate Chinese New Year in the home countries

  • Whereas in Singapore, 11% intend to spend the extended holiday overseas

Spending on fashion

  • 53% of those who intend to spend on fashion are most likely to be shopping in physical stores. Meanwhile, 18% intend to do so via brands’ or fashion retailers’ websites/ apps and 28% on marketplace ecommerce platforms


     
  • Singapore shoppers are most likely to shop in-person (66%) versus other Southeast Asian countries

Spending on food products/services

The most common food products/services that Southeast Asian consumers will spend on for Chinese New Year are:

  • Fresh fruits and vegetables (63%)

  • Sweet snacks & Confectioneries (eg. biscuits, candies, chocolates) (50%)

  • Non-alcoholic beverages (eg. milk, tea, soda) (44%)

Other regional differences:

  • Vietnamese consumers tend to spend on food hampers (46% vs 27% regional average), alcoholic beverages (53% vs 36% regional average), and food catering services (37% vs 25% regional average)

  • Most common food products/services that Thai consumers intend to spend on are fresh fruits and vegetables (73% vs 63% regional average) and ready-to-eat meals (54% vs 37% regional average)

  • Singaporean consumers are more likely to spend on sweet snacks & confectioneries (61% vs 50% regional average), chips and crackers (48% vs 36% regional average) frozen food (45% vs 33% regional average)

Spending on personal care/beauty products/services

Consumers intend to spend on these personal care/beauty products/services:

  • Hair cut/styling (73%)

  • Facial treatments (50%)

  • Body treatments (eg. waxing, toning) (28%)

  • Nails (i.e manicure, pedicure, nail art) (26%)

  • Eyelash curling/extension (12%)

Other regional differences:

  • Vietnamese consumers are more likely to go for body treatments (40% vs 28% regional average)

  • Thai consumers are more likely to go for nails services (38% vs 26% regional average)

Spending on entertainment/leisure activities

  • The top activity that Southeast Asians intend to spend on is domestic travel/staycations (43%) – this is most common in Thailand (66%)

  • Other activities that top the list are movie tickets (42%) and streaming services (32%)

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