Durian cakes lead to cross-category price war

The price war for durian cakes and similar market phenomena that have now spread to a variety of categories and retail operators indicate that Chinese consumers are becoming more rational and cost-conscious, and retailers increasingly need to make more improvements in supply chain management and store experiences to meet new market needs, said industry experts.

The flurry of pricing competition began after prices for durian cakes sold by Freshippo — the grocery and fresh goods retail chain under Alibaba Group — and US retailer Sam's Club — were slashed in the second half of 2023. The pricing tug-of-war not only lowered the popular sweet snack down to 79 yuan ($11) on Freshippo and 85 yuan at Sam's Club, but also was seen among a broad range of consumer products, with both online and offline retailers joining the fray.

For example, a 950-milliliter carton of fresh milk can now be bought for under 10 yuan in Shanghai versus at least 13 yuan a few years ago, said the Shanghai Observer.