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Moon-cake market: expensive products emphasised
One month before the Mid-autumn Festival, the market for moon cakes is getting warm. This year producers seem to favour expensive products.
According to some cake producers, expensive products will account for 4-6% of the market this year, but revenue from this kind of product is expected to make up 10-15% of the total revenue. That’s the average. At some firms, expensive products are the major ones.
Investing in quality
Nguyen Thi Ngoc Lien, PR Manager of the Kinh Do JS Company, said this year the output of expensive cakes will increase by 40% over 2007, equivalent to 200,000 boxes of cakes, while Kinh Do will maintain the total output of moon cakes, 1,500 tonnes. The price of expensive cakes is between VND350,000 to VND520,000 ($21.5-32) per box.
Meanwhile, expensive products of Hy Lam Mon will be priced at over VND900,000 ($56) per box, and this company plans to make 5,000 boxes of this kind.
Kao Sieu Luc, Director of ABC Confectionery Company, revealed that ABC will raise its moon cake output by at least 20% compared to 2007. ABC will produce at least 1,000 boxes of high-grade cakes, priced at VND99,000/box.
Similarly, the Bien Hoa Confectionery Company (Bibica) plans to make 400 tonnes of moon cakes, Vinabico 300 tonnes, of which the volume of expensive cakes will increase by more than 30% over last year.
All producers say high-grade cakes are made of premium materials. There are different kinds of cakes that fit people who are on diet and diabetes patients. For example, Hy Lam Mon uses several kinds of fruits to make cakes for diabetics. Kinh Do uses Mochi to replace salted egg to produce cakes for dieters.
Producers also pay special attention to packaging. Kinh Do uses wood boxes for high-grade products while Hy Lam Mon imports boxes from China.
According to a cake trader, 70% of the moon cakes are used as gifts so the market for expensive cakes will expand.
Input prices up, small producers crying
According to producers, moon-cake prices this year will rise by 10-20% compared to 2007 because of the increase of input prices. However, the retail prices listed at shops are much higher than producers’ announcements. Kinh Do’s moon cakes are down in weight but up in price.
The prices of moon cakes in the market range from VND80,000-190,000/4-egg cake, VND39,000-60,000/2-egg cake, VND25,000-40,000/one-egg cake, VND18,000-32,000/plain cake.
While big companies are optimistic about this year’s market, small producers are very worried. Tung, the owner of a small bakery in District 6, HCM City, said: “Input prices increase day by day so we still haven’t been able to fix the final prices, so orders for moon cakes have fallen sharply this year.”
Household-scale producers in Districts 5 and 6, HCM City are narrowing their production because of lacking orders.
VNN
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