100 Million People in China Can’t Afford Mooncakes; They Pile Up Unsold as Money Runs Out
Summary
TLDRThis year's Mid-Autumn Festival sees a peculiar slump in mooncake sales, traditionally a symbol of the holiday. High prices and economic struggles have dampened consumer interest, with even top brands like Maxim's facing challenges. The luxury mooncake market, once a status symbol, now struggles as people prioritize necessities over festive luxuries. The downturn reflects broader economic concerns and a shift in consumer behavior, with health and food safety also influencing the decline.
Takeaways
- 📉 Moon cake sales have significantly dropped this year, with many sellers struggling to move their stock.
- 💸 High costs are not the only factor affecting moon cake sales; economic downturn and reduced consumer spending play a role.
- 🎑 Traditionally, moon cakes were in high demand around the Mid-Autumn Festival, but this year's market is unusually quiet.
- 🏢 Maxim's, a top moon cake brand in mainland China, is also experiencing difficulties in sales, indicating a broad market issue.
- 🛒 Consumers are cutting back on non-essentials like moon cakes due to financial constraints, prioritizing basic living expenses.
- 📉 The luxury moon cake market is also affected, with high-priced moon cakes seeing a decline in sales.
- 🏭 Moon cake factories are reducing production and adjusting schedules due to the decrease in orders.
- 📦 The tradition of gifting moon cakes is fading as fewer businesses and individuals purchase them as gifts.
- 🍰 Health concerns and the perception of moon cakes being high in sugar and fat are contributing to their reduced popularity.
- 🚫 Food safety issues, including the use of additives like titanium dioxide, are causing consumers to be wary of moon cakes.
Q & A
Why are moon cakes not selling well this year according to the script?
-The script suggests that moon cakes are not selling well this year due to a combination of high prices, economic struggles, and a shift in consumer behavior. Many people are struggling financially and cannot afford luxuries like moon cakes, and there's also a concern about food safety, which is affecting sales.
What role do moon cakes play in Chinese culture and why are they significant during the Mid-Autumn Festival?
-Moon cakes are a traditional Chinese pastry associated with the Mid-Autumn Festival. They are typically eaten during the festival and are also given as gifts. The festival is almost as important as Chinese New Year, making moon cakes a must-have item during this time.
How have food safety concerns impacted the sale of moon cakes in China?
-Food safety concerns, such as the use of additives and the rejection of moon cakes by the EU due to the presence of titanium dioxide, have led to a decline in public trust. This has resulted in a drop in sales as consumers become more health-conscious and wary of potential health risks associated with consuming moon cakes.
What is the significance of Maxim's mooncakes in mainland China, and why are they struggling this year?
-Maxim's mooncakes from Hong Kong have been a standout brand in mainland China due to serious food safety concerns in the country. However, even Maxim's is struggling this year, possibly due to the overall economic downturn and a decrease in consumer spending on non-essential items.
What is the impact of the economic downturn on the moon cake market as described in the script?
-The economic downturn has led to shrinking profits and fewer people willing to take the risk of stocking moon cakes. This has resulted in a natural drop in sales, with many businesses struggling to sell even well-known brands like Maxim's.
How have consumer habits changed regarding moon cakes according to the script?
-Consumer habits have shifted towards more affordable moon cakes, with simpler flavors and lower prices. The script mentions that the best-selling moon cakes now are the ones that cost 2 yuan each, indicating a move away from expensive, fancy moon cakes.
What is the role of moon cakes in corporate gifting and employee benefits as described in the script?
-Moon cakes have traditionally been part of corporate gifting and employee benefits, with companies bulk purchasing them for employees and clients. However, due to layoffs in the tech industry and a reduction in employee benefits, this market has significantly decreased.
Why are moon cakes being compared to financial products in the script?
-The script compares moon cakes to financial products because they have been turned into vouchers that can be circulated in the market, similar to futures contracts. This financial maneuver allows for profit-making without the physical exchange of moon cakes, but the economic downturn has led to a collapse of this financial game.
What is the connection between moon cake sales and the broader economic trends in China as mentioned in the script?
-The decline in moon cake sales is seen as a reflection of China's economic future, with a potential long-term downturn affecting every industry, family, and individual. The script suggests that societal demand is in a long-term, irreversible decline, which will impact all sectors, including moon cake sales.
How has the luxury moon cake market been affected by the economic situation, according to the script?
-The luxury moon cake market, which includes expensive moon cakes with high-end ingredients, has been severely affected by the economic situation. The script mentions that even moon cakes priced at thousands or tens of thousands of yuan are struggling to sell, as ordinary people cannot afford such luxuries.
Outlines
🥮 Unprecedented Decline in Mooncake Sales
The script discusses the unusual downturn in mooncake sales leading up to the Mid-Autumn Festival. Traditionally, mooncakes are a staple during this period, with high demand and price surges. However, this year, sales have been sluggish, even for premium brands like Maxim's. Factors contributing to this include high prices, economic struggles, reduced business gifting, and the prioritization of necessities over luxuries. The script also mentions the reduced production and shipments by factories due to the drop in orders, and the hesitance of retailers to stock mooncakes, reflecting a broader economic trend and a shift in consumer behavior.
📉 Economic Impact on Mooncake Popularity
This paragraph delves into the economic factors affecting mooncake sales, highlighting that the middle class and startups are financially strained, leading to a reduced demand. The script mentions that mooncakes, once a semi-essential product for the middle class, are now considered a luxury that many cannot afford. It also discusses how mooncakes have transitioned from being a consumable good to a financial product, with companies using vouchers and gifting culture to drive sales. The economic downturn has led to a decrease in bribery and corporate gifting, which in turn has impacted mooncake sales. Additionally, the script touches on the public's growing health consciousness and concerns over food safety, which are contributing to the decline in mooncake popularity.
🚫 Food Safety Concerns and Mooncake Sales
The paragraph focuses on the impact of food safety concerns on mooncake sales. It discusses the controversy surrounding the use of titanium dioxide in mooncakes, which has led to bans and rejections by the EU. This has raised questions about the safety of mooncakes and the potential risks they pose to health. The script also mentions other food safety scandals that have eroded consumer trust in China's food industry. The concerns over additives and the quality of mooncakes have further dampened sales, as consumers become more health-conscious and wary of potential risks associated with consuming such products.
📉 Mooncake Financialization and Economic Downturn
This paragraph explores how mooncakes have been financialized, turning them into a type of futures contract used for bribery and gifting. It describes the process where mooncake vouchers are circulated and traded without the actual mooncakes being produced or exchanged. The economic recession has led to a decrease in demand for such financial maneuvers, causing a collapse in the mooncake financial market. The script also compares the current struggles of mooncake sales to those of other industries, like liquor, which are also facing a downturn. It suggests that the decline in mooncake sales is indicative of broader economic challenges and a potential long-term trend of reduced societal demand.
Mindmap
Keywords
💡Mid-Autumn Festival
💡Mooncakes
💡Maxim's mooncakes
💡Food safety
💡Economic downturn
💡Gift-giving culture
💡Titanium dioxide
💡Moutai
💡Consumption indicator
💡Health consciousness
💡Social exchanges
Highlights
Moon cake sales are unusually low this year, with more sellers than buyers in supermarkets.
In the past, moon cakes were like hard currency, but this year even top brands like Maxim's are struggling.
A friend has 10,000 boxes of moon cakes from July still unsold, indicating a significant drop in demand.
The mid-autumn festival is traditionally a peak time for moon cake sales, but this year the market is quiet.
Fancy moon cakes, often bought as business gifts, are less popular due to the economic downturn.
Many people are struggling financially and cannot afford non-essentials like moon cakes.
The high cost of moon cakes is deterring potential buyers, even though they are traditionally a must-have item.
Moon cake factories are reducing production due to a sharp drop in orders.
A sales manager from a moon cake factory in Shenzhen notes a significant decrease in orders and lighter workload.
A star-rated hotel in Shenzhen has reduced its moon cake sales target due to decreased consumer spending.
Some factories are operating on a three days on, one day off schedule due to lack of orders.
A food store owner is hesitant to stock moon cakes due to poor sales and changing consumer habits.
Last year, selling a few dozen boxes of moon cakes was considered a success, reflecting a drastic change in sales.
The economy's poor state has led to a decline in moon cake sales, affecting almost every industry.
Moon cakes, once a consumption indicator for the middle class, are now out of reach for many.
Government workers, traditionally big buyers of moon cakes, are unlikely to spend lavishly on them due to financial constraints.
Public concern about food safety, including the use of additives in moon cakes, is contributing to lower sales.
The EU's rejection of Chinese moon cakes due to titanium dioxide has raised questions about food safety.
Moon cakes have become a financial product, with vouchers circulating as a form of futures contract.
The economic recession has led to a collapse in the moon cake financial market, affecting food companies' profits.
High-end liquors like Maotai are also facing sales difficulties, indicating a broader economic impact.
The decline in moon cake sales is seen by some as a reflection of China's economic future and societal demand.
Transcripts
this year's midon Festival business is
really strange I get that liquor isn't
selling but how is that even moon cakes
aren't moving now liquor not selling can
be blamed on high prices but moon cakes
aren't even that expensive just look
there are more sellers in the
supermarket Than People browsing for
moon
cakes even the top moon cake brand can't
hold on I've got my whole car packed
with moon cakes right now in the past 2
years around 20 days before the
mid-autumn festival if you wanted to buy
Max moon cakes the price would go up
every day everyone was rushing to
pre-order and stock up whoever stocked
them made money it took connections to
even get some in and once you had them
it was as good as cash they were like
hard currency but not this year a friend
called me saying they still had 10,000
boxes from July asking if I could help
sell them
off mid-autumn Festival is a traditional
Chinese holiday almost as important as
Chinese New Year moon cakes as a
must-have item for the festival should
be flying off the shelves about about a
month before the holiday but this year
the market is unusually quiet there are
many mooncakes brands in China but
because of serious food safety concerns
in the country Hong Kong's Maxim's
mooncakes have been the standout in
mland China as recently as last year
they were still selling like crazy but
this year even maxims is struggling one
distributor explained that with
shrinking profits fewer people are
willing to take the risk of stocking
moon cakes leading to a natural drop in
sales fancy moon cakes are often bought
as gifts for business contacts but in
this economy fewer business gifts are
needed how many regular people are going
to spend 300 un on eight small moon
cakes one person commented moon cakes
aren't food or necessity when people are
broke and can't earn a living how can
they afford to spend on luxuries wages
aren't even being paid and families are
already struggling with water
electricity bills and school fees how
can they still buy moon cakes people are
barely scraping by eating a steam bun at
every meal if they're lucky this year
forget about moon cakes even plain
porridge with Pickles is hard to come by
right now more people are just trying to
survive eating only two meals a day
noodles at lunch and a little pork with
vegetables for dinner the kids just
started school and I had to borrow a lot
of money for that who has any spare cash
left to spend on moon cakes another
commenter mentioned think about it what
kind of pastry costs a few hundred Yen
per pound aart from moon cakes what
other pastry is that expensive even
pastries that cost 30 per pound make
people think twice let alone moon cakes
that cost hundreds per pound it's
ridiculously expensive when people
aren't struggling to make ends meat who
has the energy to care about holidays
even during the New Year it's the same
usually right before the mid-autumn
festival Mooncake production lines
always buzz with activity workers would
be working overtime to meet the high
market demand however things are
different this year due to a sharp drop
in orders factories have had to adjust
their production schedules to cut cost
and reduce excess inventory a report
from the time weekly quoted a sales
manager from a moon cake factory in
Shenzhen he said that in previous years
the two weeks before the festival were
the busiest with a factory shipping
products even in the middle of the night
but this year the number of orders has
significantly decreased and the workload
has lightened as well a manager from the
dining business of a star rated hotel in
Shenzhen shared that since the second
quarter they've noticed a drop in
consumer spending last year the hotel
sold 13,000 boxes of moon cakes but this
year the target was reduced to 10,000
boxes and they still couldn't sell them
a sales manager at a large moon cake
factory in guano mentioned that due to
the lack of orders some factories are
now working three days and taking one
day off with shipments going out every
other day a food store owner witnessing
the poor sales this year was conflicted
about whether or not to stock moon cakes
so he turned to social media to ask
fellow business owners for
advice as the mid-autumn festival gets
closer how are your moon cake gift boxes
coming along in previous years I would
have started selling by now but this
year I'm still hesitating the main
reason is that fewer people are giving
gifts and younger people are just buying
them online and sending them home I
remember in the early years of my store
business was great during the holidays I
could sell 10,000 or 20,000 un worth of
moon cakes in a single day business
owners would buy them for employes
students would buy them for teachers and
younger people would buy them for their
elders but now if I could sell a few few
dozen boxes during the holiday I
consider it good what's the situation
like for you all in the comments below
his video another store owner replied
selling a few dozen boxes of moon cakes
would be a success now last year I only
sold less than 20 boxes so this year I'm
not even bothering with gift box
packaging I lost over 1,000 un selling
moo cakes last year so this year I'm not
selling them at all I had planned to
start selling moon cakes but no one's
placed an order with me so far it seems
like moon cakes are being sold
everywhere but no one's buying I've
decided not to sell them anymore the
economy is in shambles and almost every
industry is frozen moon cakes of course
can't stay popular as one blogger said
no one has money anymore so no one can
afford moon cakes that cost hundreds of
unen per box naturally the ones that
cost 2 un each are flying off the
shelves the reason moon cakes aren't
selling well this year comes down to the
fact that the middle class and startups
just don't have the money anymore
yesterday in the elevator I overheard
the boss of a shell company say that
both moon cakes and hairy crabs aren't
selling this year actually last year
moon cake vouchers and crab gift cards
didn't sell well either and there was no
expected growth people thought that it
was just a cyclical thing but now that
it's happening again it looks like a
larger Trend next year could be even
worse moon cakes used to be a
consumption indicator for the middle
class considered a semi-essential
product Ordinary People would buy them
to eat or give us gifts and companies
would bulk purchase them for employees
and clients for regular folks five or
six years ago the most popular moon
cakes were the iced ones from Starbucks
or those from festar hotels these moon
cakes came in beautifully packaged boxes
of 48 costing several hundred Yen a
symbol of consumption upgrade but this
year the bestselling moon cakes are the
ones that cost 2 unen each the flavors
are much simpler too just black sesame
or a sanum sugar people are just trying
to keep up with a ritual of mid-autumn
Festival in a low-key way on the
business side moon cake gift boxes used
to be a Battleground for domestic
internet companies with each company
trying to outdo the other in employee
perks moon cakes were part of the annual
benefits package but in the past 3 years
tens of thousands of people in the tech
industry have been laid off each box
cost around 200 yen and with one box per
person that market alone used to be
worth close to a billion yen now both
the people and the moo cakes are gone
according to public data the entire
annual moo cake Market in China is only
worth about 20 billion un on top of that
many Industries are cutting wages and
reducing employee benefits when it comes
to non-essential items like mooncakes
which can cost several hundred Yen a box
it's the first thing to be abandoned one
thing this blogger didn't mention is
that another major buyer of moon cakes
used to be government workers who would
receive them as part of their holiday
welfare every year around the holidays
government employees would receive all
kinds of goods from cooking oil to rice
and of course moon cakes were a must per
mid- Autumn Festival years ago news
broke about a local government in penzo
soan spending 780,000 un on mooncakes
according to a report from September
2020 a government announcement showed
that the economic technology and
information Bureau of penzo purchased
275 boxes of moon cakes with a budget of
almost 1 million yen and they finally
spent 780,000 un on them each box cost
289 un at the peak of the pandemic a
small local government Department used
nearly a million un to buy over 2,000
boxes of moon cakes which spark public
outrage but nowadays local governments
are in bad shape civil servants are not
being paid on time it seems so unlikely
that they will spend so lavishly on moon
cakes as a perk anymore one media Outlet
also suggested that the reason moon
cakes aren't selling well this year is
because people are paying more attention
to healthy eating modern consumers are
more focused on health and moon cakes
which are usually higher in sugar and
fat don't fit into that lifestyle moon
cakes have also become more of a tool
for social exchanges giving us gifts out
of courtesy but not necessarily because
people enjoy eating them many are
accepted politely but not actually
consumed which contributes to the
decline in their popularity another
blogger believes that besides the fact
that people don't have money another
important reason for the drop in moon
cake sales is the Public's concern about
food safety just look at the ingredients
list it's full of additives with
chemical names that are hard to
pronounce is that a moon cake or a
chemical
product the reason moon cakes aren't
selling well on the surface is because
they contain too much oil and sugar
which isn't good for your health if you
eat too much of them but I think that's
just nonsense we eat plenty of unhealthy
Foods don't we do you think Hot Pot is
healthy is barbecue healthy so clearly
that's just a superficial reason the
real issue is food safety there's a
rumor going around online that over
10,000 tons of moon cakes originally
meant to be exported to the European
Union were rejected by the EU because
they contain titanium dioxide and the EU
didn't even allow them to be destroyed
within its borders titanium dioxide is a
coloring agent that makes moo cakes look
bright and appealing but it's also
something that can cause genetic
mutations the thing is the moon cakes
exported to the EU are supposed to meet
high standards and be of good
quality but even those were rejected and
after being sent back they weren't
allowed to be destroyed in Europe so I
have to ask will they really be
destroyed when they return if not who
will they be sold to are the moon cakes
we're eating this year really freshly
made with all the recent controversies
surrounding prepackaged Foods people's
trust in food safety is at an all-time
low on September 27th
2023 Planet Business Review published an
article stating that the rapid alert
system for food and feed which monitors
issues within the EU reported that
Finland found titanium dioxide in moon
cakes imported from China and
subsequently banned their entry the
article explained that titanium dioxide
is a common food coloring colorless and
tasteless also known as titanium white
it has been used to enhance the
whiteness in opacity of foods for over
50 years however a 2021 study by the
European food safety Authority concluded
that titanium dioxide should no longer
be considered a safe food additive
because it can damage human DNA it's
worth noting that Chinese candies have
also been rejected from the EU multiple
times due to the presence of titanium
dioxide on top of that recent food
safety scandals ranging from cooking oil
to various processed foods have left
people on edge recently a customer even
found a tooth in a fresh meat moon cake
bought from Sam's Club
if even foreign invested companies can't
guarantee food safety in China where can
Chinese people find food they can trust
it's not just the high prices of moood
cakes that are driving people away
though the cost does leave ordinary
folks staring at their thin wallets the
hidden safety concerns are making them
even more fearful leading many to Simply
give up on buying them if people think a
box of mood cakes costing a few dozen or
a few hundred yen is expensive what
about those costing thousands or even
tens of thousands a un a Chinese brand
once released a moon cake priced at
12,888 un and there was another moon
cake with sharkin and Abalone priced at
5,880 in zenjo Hunan one brand sold Muk
case for
8,800 eventually this led to four
Departments of the Chinese Communist
Party jointly issuing a regulation
capping the price of moo cakes at no
more than 500 unen per box even at 500
per box which is about
$70 it's still considered extremely
expensive making moon cakes irrelevant
to Ordinary People and tied more to the
world of capital the Chinese Capital
Market has a unique ability to turn
anything into a financial frenzy whether
it's tea or moon cakes at some point the
mid-autumn festival became a financial
celebration Capital turned moon cakes
from a food item into a financial
product cleverly manipulating China's
giftgiving culture some have even
remarked that this level of
sophistication would make Wall Street
Titans Marvel an ex- account user named
La man posted that moon cakes have
essentially evolved into a type of
Futures Contract primarily used for
bribery the person giving the bribe
purchases a moon cake voucher which acts
as a futurist ticket and gives it to the
recipient the recipient then redeems it
which is the equivalent of settling a
Futures Contract the difference between
the voucher price and the Redemption
price is a profit for for the moon cake
company in this entire process the moon
cake itself doesn't even need to be
produced now with the economy in deep
recession the demand for bribery has
plummeted across Industries leading to a
significant reduction in Muk cake
Futures this drop Cuts directly into
profits leaving many food related
companies in a dire situation A Doan
blogger explained in detail how moon
cakes have been given Financial
attributes
the past few years moon cakes have
stopped being Food meant to be eaten and
have instead turned into vouchers that
can be circulated in the market for
instance a company might only produce
10,000 boxes of moon cakes at a price of
801 per box but will print 100,000
vouchers valued at 498 un each publicly
the company claims that with these
vouchers you can redeem moo cakes worth
498 Yen then they sell 100,000 vouchers
to agents for 400 Yen each and the
agents in turn sell them to Consumers at
the full price of 498 Yen consumers can
now give the voucher as a gift during
the mid-autumn festival without having
to physically deliver the moon cakes
making it both discreet and convenient
when the gift recipient ends up with too
many vouchers they don't actually redeem
them for moon cakes this is where
scalpers come in offering to buy the
vouchers back for 300 each the scalpers
then resell the vouchers to businesses
for 350
throughout this process no moo cakes are
ever exchanged a single voucher circles
through China's giftgiving culture and
eventually lands back in the hands of
the business the business sells it for
400 un and buys it back for 350 earning
50 the agent buys it for 400 un and
sells it for 498 un making 98 un and the
scalper buys it for 300 un and resells
it for 350 un making 50 even the gift
recipient manages to cash in the voucher
everyone seems to walk away Happy the
person who spends 498 un on the moon
cake voucher may seem like the only one
being taken advantage of but in reality
they're exchanging money for the favor
they're giving it's a willing trade on
both sides this kind of elaborate
Financial maneuver was once perfected to
an art but with the arrival of the
economic winter even the financial game
of moo cakes has collapsed it's not just
moon cakes that are struggling to sell
in this tough economy even multi liquor
which is dominant the Chinese market for
years is facing difficulties as a mid-
aumn festival approaches a time in mul
Tha and other high-end Liquors usually
enjoy a sales boom things are looking
Bleak this year the market is unusually
quiet and prices have continued to drop
even the most popular fatan m Thai
series is not exempt from the price cuts
on September 6th today's liquor prices
reported that the hosale reference price
for loose bottles of the 2024 Fen mul
Thai had dropped to
2,365 per bottle while the wholesale
price for a full bottle had fallen to
2595 Yen breaking below the 2,600 un
threshold a liquor store owner in ginan
Shandong told a reporter from high bound
news multi prices will never go up never
he mentioned that on that day his store
was selling mulai in original boxes for
2,600 un per bottle which is a 200 un
drop from the price of 2,800 un just two
weeks ago it's just the usual pre-
holiday release but this year is
different sales are poor there's more
stock than demand so prices can't go up
a longtime multi dealer said this year's
mid-autumn Festival is a disaster multi
prices have dropped continuously for
about a week and sales will likely be
less than half of last year's it's
nothing like the old days where the
phone wouldn't stop ringing and we were
so busy shipping that we didn't even
have time to eat I've been in the multi
bus for 10 years and I've never seen
anything like this this Market is
incredibly tough this year in reality
it's not just mooncakes and mul Tha that
are suffering since August every
industry has been feeling unprecedented
pressure as soon as they hit the shelves
they tanged iced moon cakes molten
Center moon cakes egg yolk pastries none
of them are selling fruit sellers are
also feeling the squeeze nothing is
moving and instead of seeing profits
they're witnessing alarming levels of
spoilage
although August is considered a slow
season even during the slowest times
there would be one or two products that
stood out but this year no matter the
time not a single hot selling item has
emerged for the 2024 mid-autumn Festival
people aren't focus on mooncakes anymore
they're talking about the bigger picture
some are saying that the collapse in
moon cake sales is a reflection of
China's economic future a downturn
lasting 3 to 5 years is part of a cycle
but one lasting 30 to 50 years signals a
final decline the decline in societal
demand is a long-term irreversible Trend
as more people leave the country and
fewer are born demand will sharply
shrink over the next 30 to 50 years this
affects every industry every family and
every individual
[Music]
Browse More Related Video
Another Major Market Bubble Just Burst.
Huawei Phones Sales Crash in China; Steep Drop in Sales, Samsung Considers 30% Layoffs
The world's tallest slum: Caracas' notorious Tower of David
Meet Warren Buffet's Worst Investment: Kraft-Heinz
Why Australia's Economy is Doing Surprisingly Badly
Nike Is Having a Really Bad Year
5.0 / 5 (0 votes)