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Traditional food shops in Hong Kong are seeing softer rice dumpling sales ahead of the Dragon Boat Festival, as changing consumer habits, cross-border spending and online competition add pressure to heritage brands already facing higher costs.
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Chan Kam-fai, owner of Wing Fu Company in Kowloon City, said overall sales have remained stable, but the pandemic has reshaped buying habits, with more customers now placing orders online.
He said online orders now account for 40 percent of the shop’s business, up from about 20 percent in previous years.
To adapt, Wing Fu has focused on premium and vacuum-sealed rice dumpling gift boxes designed for travelers and overseas gifting, while also offering free shipping promotions.
Still, Chan said physical shops remain irreplaceable, as they allow long-time customers and shop owners to maintain face-to-face ties.
Meanwhile, Chan Tiu-ming, owner of Shanghai New Sam Yung Market, said walk-in customers have dropped by 10 to 20 percent, while corporate bulk orders have fallen by around 20 percent.
He said ingredient costs have risen by 10 to 15 percent this year, but raising prices would not be a good move in the current economic climate. The shop has instead chosen to absorb thinner profit margins and keep prices unchanged.
Traditional and mid-priced options, such as Jinhua ham dumplings and red bean paste dumplings, remain popular, while varieties using premium ingredients such as abalone and dried scallops have seen slower sales, Chan said.
The shop has also adjusted its stock strategy to avoid excess inventory.
Chan said the economic downturn cannot be solved by promotional offers alone, noting that part of local spending power has shifted away from Hong Kong as more residents travel abroad.
Although the black rainstorm warning signal was in force on the eve of the festival, some residents still visited the shops to buy rice dumplings.
A customer surnamed Sin braved the heavy rain to buy traditional Cantonese rice dumplings, saying that purchasing them from a trusted shop has become an annual ritual for her family.
