On the afternoon of the 28th, three days before the Dragon Boat Festival (端午节), one of China's three major holidays, a discount sale event for 'zongzi' (粽子), a traditional food for the festival, was underway at a large supermarket in Beijing. Zongzi is a dish made of glutinous rice filled with red bean paste, pork, and egg yolk, wrapped in bamboo leaves, and steamed. It resembles 'yakbap' from our country in appearance and is salty and sweet.
In the middle of the large supermarket, zongzi wrapped in red gift boxes were stacked. There were four stands divided by type and purpose. However, the popularity appeared to be waning. There were a few customers who glanced at the products, but they were not easily picking them up.
Meanwhile, online, zongzi incorporating recent consumer trends were popular. After searching for 'zongzi' on the shopping app JD.com, zongzi with 'latiao' (辣條) flavor ranked first and second. Latiao is a spicy snack considered a national treat in China. With rising concerns about obesity and diabetes, low-fat and low-sugar zongzi are also gaining popularity. In addition, products using brown rice and quinoa instead of glutinous rice, as well as 'durian ice cream zongzi,' 'truffle zongzi,' and 'vegan zongzi' also caught the eye.
Chinese corporations focused on traditional foods are adjusting distribution channels and shifting product strategies. As offline sales of their representative product, zongzi, have declined and the consumer trend emphasizes health and individuality, traditional food corporations are seeking breakthroughs to escape dependence on festive sales.
The decline in the popularity of traditional zongzi is confirmed by figures. According to the big data analysis company Masangying (马上赢), from the 12th to the 25th of this month, sales of packaged zongzi in offline stores dropped by 34.5% compared to the previous year, while the number of sales decreased by 26.8%. The average price per item also fell to 19.26 yuan from 21.73 yuan during the same period last year.
Related companies have been impacted financially. According to the economic media outlet First Finance, Wu Fang Zhai (五芳斋), the number one company in the zongzi market with over 100 years of establishment, saw its sales in the zongzi sector reach 1.579 billion yuan (approximately 302.1 billion won) last year, an 18.6% decrease compared to the previous year. Zhen Zhen Lao Lao (真真老老), a zongzi producer, recorded a deficit of 29 million yuan (approximately 5.5 billion won) last year, expanding its deficit more than threefold from the previous year.
These companies historically accounted for over 40-60% of their total sales during holidays. However, as the structure became unsustainable due to diversification of distribution channels and the spread of health trends, they are shifting to an online-focused strategy. According to First Finance, not only traditional strongholds like Wu Fang Zhai and Zhen Zhen Lao Lao but also small businesses in various regions have opened online stores on e-commerce platforms. Live commerce sales featuring influencers are also becoming active.
Reports indicate that the sales volume of zongzi on the Chinese e-commerce platform Pinduoduo (拼多多) has tripled compared to the same period last year, while transaction amounts on Tmall (天猫) increased by 70%. First Finance noted that 'young people, as well as middle-aged and older people, have become accustomed to online shopping, leading to sales being concentrated online,' adding that 'manufacturers focusing on online sales are launching new products that align with market trends to respond to the changes.'