Lychee champion frustrated: Prices do not rise according to the rules of production reduction
At this time of year, lychee is placed at the center of the fruit sales stage and is known as the "king of fruits". This year, however, the legend, seen as a luxury fruit, seems to have suffered a setback. The sharp cuts in production should have pushed prices higher, but they fell far short of expectations and surprised growers and dealers. Faced with the current situation of "the most ruthless slap in the face", we can't help but ask: Is this king falling out of favor?
The production cut is serious, but the price does not rise
This year's lychee production has indeed decreased significantly, and the national estimated output is only 1.78 million tons, down 45.94% from last year. The main producing areas such as Guangdong and Guangxi have suffered particularly severe losses. In theory, a drop in supply should push prices higher. In fact, the price of lychee has fallen instead of rising.
In the early days of listing, although the retail price of Hainan osmanthus fragrance varieties reached 60-70 yuan/jin, the concubine smile was also as high as 50 yuan/jin. But then the price continued to decline, and now the wholesale price has fallen to about 16 yuan/jin, and the retail price is 16-19 yuan/jin, far lower than the same period last year. Other popular varieties such as white sugar poppy are only 30 yuan per catty.
This is completely contrary to consumer expectations and price movements in previous years. What is the reason why this king's market is so "out of his word"?
Fruits do not have the attribute of "rigid demand", and homogeneous competition intensifies
The reason may be that lychee is not a necessity, but a dispensable luxury fruit. If the price is too high, consumers can choose other kinds of fruit, or even skip it altogether.
This year, the prices of other seasonal popular fruits such as cherries, durians, watermelons, etc. are also not high. Durian has dropped to 19 yuan per catty, forming a direct competition for lychees. In addition to Hainan, different varieties have been listed one after another, and consumers have a wide range of choices.
These factors weakened the foundation for Lychee to enjoy the aura of "nobility". Volkswagen has long been accustomed to low-priced lychees, and is likely to avoid them in the face of high prices at the beginning of this year. It can be seen that it is not easy to make the price rise sharply.
Consumption upgrading has forced industrial change
Fruit prices fluctuate not only on supply, but also on consumer desires and preferences. Although the long-term low price has met the expectations of the public, it has also brought the hidden danger of "boiling frogs in warm water" to the industry.
Nowadays, Chinese people are pursuing more and more high-quality fruits. In the face of market contrast, the industry has sounded the alarm that only by improving quality, doing a good job in brand packaging, and increasing added value can we keep up with the pace of consumption upgrading.
Can the "Majesty the King" of the fruit industry rise to the challenge and regain its strength? It's interesting to see.
As the king of fruits, the market of lychees this year seems to be quite funny: the supply has been greatly reduced, and the price has fallen instead of rising, which is ridiculous. Coincidentally, other popular fruits are also competing on the same track, forming a homogeneous competition. Behind this is a potential trend of change - consumption upgrading is quietly advancing, requiring the fruit industry to keep pace with the times.
After all, fruit is a luxury, and the only way to get rid of the low-price dilemma is to keep up with the pulse of the market, continue to innovate, and improve the quality connotation. I look forward to the continuous rejuvenation of this "king of fruits" in the big waves, so that luxury can return, and finally dominate the market competition.