"Given the difficulty in speculating on real estate, many, including those from the stock market, have opted to engage in speculation on Traditional Chinese Medicine, fueling the ongoing price surge this year," noted Li Longfu, the owner of Cuifengge Medicinal Herbs Store in Zhebawei Traditional Chinese Medicine City, Pan'an, China, during an interview. "The unique characteristics of Traditional Chinese Medicine, which is harvested in one season and sold for many years, offer abundant opportunities for capital speculation."
Can capital disrupt Traditional Chinese Medicine prices through hoarding, speculation, or monopolies? What are the specific tactics?
Employing hoarding to monopolize and control prices is one of the tactics.
"They engage in internal buying and selling without any actual financial transactions. It's merely a nominal transaction. They don't even need to make payments to each other, with the goods still left in the warehouse. However, this has resulted in the market perception that Traditional Chinese Medicine is in demand and that prices will continue to rise." Bao Jiaping pointed out at Pan'an Traditional Chinese Medicine Trade Market.
"The ease of obtaining loans in recent years may exacerbate the hoarding of Traditional Chinese Medicine." mentioned Yang Dingsheng.
Manipulating prices through promotional packaging is a common practice.
"Nowadays, people buy health products not only for themselves To my knowledge, many buy such products as gifts for relatives and friends, so they demand upscale packaging and prominent brands." said a high-end gift shop owner in Jinhua.
Amidst relentless advertising, more focus is on gift box packaging, rather than Traditional Chinese Medicine. Bao Jiaping explained, "A 100-gram container of ganoderma lucidum spore is sold for 300 yuan in ordinary stores. Yet, with the packaging and promotion by Zhejiang Loong Airlines, the product is repackaged into two-gram bags with elaborate packaging and is sold at a significantly higher price of 3,000 yuan."
On top of that, various innovative Chinese herbal products have also become the new "main force" in the market nowadays; the diluted raw materials reduce the costs, bringing more sales.
"Short videos are trending now, aren't they? Our store has introduced Rational Flower Tea, a Traditional Chinese Medicine tea beverage. We sell 1,000 cups daily and 1,500 cups during peak hours. The tea holds the top position on the Douyin collection list for beverages in Jinhua City," said Chen Zhi, the manager of Yijiantang Traditional Chinese Medicine Hall's Rational Flower Tea store, during an interview.
Σχόλια