How to sell a 0.5 USD Zongzi at 50 USD?


Recently a company shakes the food market with an astonishing price on their Zongzi. (Zongzi (or simply zong) (Chinese: 粽子) is a traditional Chinese food, made of glutinous rice stuffed with different fillings and wrapped in bamboo or reed leaves. Source: wiki)

The company Shan Fang Yu Tea boasts that their Zongzi is produced according to the standards of ancient Chinese royal family. The filling inside the Zongzi is said to be the best fillings on the market. They are also sold along with other high-class wine or tea.
The cost of the Shan Fang Yu brand Zhongzi is at 300 Yuan, compared to the average cost of a regular Zhongzi at 3 Yuan,  100 times the cost!

I don’t think anybody will refuse this 99% profit margin. But how can we to get it? Don’t worry, here’s the map.

Attractive market of high-class food

More and more Chinese families are beginning to care about the safety and quality of their food, and they are likely to spend more to ensure good quality. As described by the CEO of a high-class online mall, China high-class food market will exceed 1.6 billion USD this year.
The high profit margin, more brand added value and promising future are luring all the food enterprises in China.
What’s more, for high-class food, customers are more willing to pay the high price, which reduces the price wars with aggressive local companies.
However, the branding of most players in this field are still new to the market. Except for some Chinese cigarette brands and Baijiu brands, you can hardly find any other high-class brand.

by Shi Yu

What kind of high-class food the Chinese will pay for?


Only strong products, technical and financial supports are not enough, a professional marketing system is a must. It includes positioning, target, brand culture, packaging, VI design… everything that increase the value of a brand.


When interviewed, the Zongzi producer told the journalist that most their products were bought as gifts. Many of their customers are from government, insurance companies, band and hotels. As introduced by Wuhan Shangri-La, most people feel ashamed to buy gifts with low prices. But the listed price is still too high for them. So the seller will usually offers them discounts which will greatly increase the chance of it being purchased.

High-class filling

sea cucumber and abalone
sea cucumber and abalone

High class filling is a very effective way to increase the price of these luxury food items. However, some companies have gone too far in their rich fillings. All the Zongzi from Shan Fang Yu Tea contains abalone in the filling. Abalone is considered as one of the most expensive foods in China. Other fillings like Pilose Antler, Sea Cucumber are also widely used in high priced food. As an expert in the Zongzi industry, Mr. Chi looks down on the excessive fillings being added. He explained that these fillings are only used to increase the price, not to improve the health or tastiness of the zongzi.


foreign candy and wine are already regarded as high-class in China

He, who keeps company with the wolf, will learn to howl. Food sold with other luxuries like wine can also be sold at a luxury price, too.
For example, this Zongzi company sells their Zongzi with other famous brand teas and alcohol.
To take the use of a brand which is already quite successful can benefit a lot to those companies who are still under the radar and need some boost in their status.

Health food

After the scandals involving food security exposed one after another, more and more people are turning to more expensive but healthier food.
For example, the founder of  Nanda, a 100% natural ranch and orchard, Mr. Niu explained that the products from his company, such as yoghurt and milk powder, has already gotten positive responses from the market. A lot of customers from rich families speak highly of their products and the price is affordable.

 see more about business in China

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