Many moon cake shops in Ho Chi Minh City, which have opened for more than two weeks, have had a hard time with sales, despite having kept prices largely unchanged from last year.
Moon cake shops face slow sales
Moon cake producers have tried to save on production costs and have even been willing to accept reduced profits to maintain their prices at the same level as the last year. Many companies have only increased their prices by 5-10%, while a number of others have offered discounts in order to attract customers. This year the selection of moon cakes is not as diverse, especially in the luxury range.
The high-end moon cakes at Kinh Do are priced at around VND630,000-2.2 million (USD30-104.7) per box, while a traditional one would cost from VND35,000-330,000 (USD1.6-15.7). The products of other brands, such as Dong Khanh and Bibica, are cheaper, at VND25,000-200,000 per cake.
Most shop owners complained that the number of customers is much lower than this time last year, and they believe it is due to customers tightening their purse strings.
This year, the majority of moon cake businesses have not raised their production from last year, and in previous years; they have increased production by from 20-30%.
Le Thanh Huyen, owner of a moon cake shop on Truong Chinh Street, in HCM City, said, “In previous years, we saw a very exciting atmosphere with a lot of sales, especially from companies who bought cakes for their staff. But this year is definitely not as good. Many customers are waiting for the promotions that will come as the mid-autumn festival nears."
Shop owners have been worried about stagnant sales and having to invest in transport fees and pay for their workers.
Truong Dai Nguyen, an owner of a shop in District 6, said he has only been selling around five moon cake boxes a day, and worries about not being able to cover his costs.
Another owner Nguyen Thi Thu Cuc said, “I have hired five staff members, but our shop has only received few customers over the past two weeks. Our profits have not even been enough to cover staff pay."
