Core Viewpoint - The company Zhong Xue Gao, known as the "ice cream assassin," has been filed for bankruptcy due to its inability to pay off debts and insufficient assets to cover liabilities, highlighting the risks of relying solely on marketing without sustainable business practices [1][7][10] Company Overview - Zhong Xue Gao was established in March 2018 in Shanghai, targeting the high-end ice cream market with products priced over 50 yuan, aiming to reshape the industry through unique ingredients and aggressive marketing strategies [2][3] - The brand gained notoriety for its high-priced products, such as the 66 yuan "Ecuador Pink Diamond" ice cream, which sold 20,000 units in 15 hours during the 2018 Double 11 shopping festival [2] Market Positioning and Strategy - The initial strategy of positioning itself as a premium brand led to a decline in market share as it failed to meet the actual demand of a broader consumer base [2][3] - In March 2023, Zhong Xue Gao attempted to pivot to a more affordable product line with the Sa'Saa series, priced at 3.5 yuan, but consumer reception was mixed, with many expressing skepticism about the brand's intentions [5][6] Financial Troubles - By October 2023, reports emerged of unpaid wages to employees, leading to restrictions on the company's operations and a significant decline in its business activities [7][8] - The company faced multiple legal disputes with suppliers and service providers, resulting in forced executions of debts amounting to millions [9] Bankruptcy Filing - The recent bankruptcy filing reflects the culmination of financial mismanagement and the inability to adapt to market demands, serving as a cautionary tale for other emerging brands in the consumer sector [1][10]

Industry Overview - The ice cream market in China has shifted from a "consumption upgrade" phase characterized by high-priced premium products to a resurgence of low-priced ice creams, indicating a return to more affordable options [2][9] - The market size of China's ice cream industry has grown significantly, from 839 billion yuan in 2015 to 1835 billion yuan in 2024, with projections to exceed 2000 billion yuan by 2027 [10] Market Dynamics - High-end ice cream brands are facing challenges, with reports of store closures and declining sales, exemplified by Häagen-Dazs and Meiji, which have seen significant operational difficulties in China [3][6] - The consumer sentiment has shifted towards price sensitivity, with 54% of consumers preferring products priced below 5 yuan, while only 31% are willing to pay between 10-30 yuan for premium options [14] Competitive Landscape - The emergence of a "quality-price ratio" era is reshaping the competitive landscape, where brands must balance quality and price to attract consumers [17][19] - Brands that maintain high quality while offering reasonable prices are gaining consumer favor, as seen with innovative products like the jasmine lychee ice cream from "Raising a Cow" [17][19] Consumer Behavior - Consumers are increasingly focused on the intrinsic value of products, prioritizing quality and safety over brand prestige, leading to a decline in tolerance for high prices without corresponding quality [8][12] - The trend of nostalgia and flavor innovation is prevalent, with brands reviving classic products and introducing unique flavors to enhance consumer experience [19]

Core Viewpoint - The once-popular "ice cream assassin" brands like Zhong Xue Gao and Haagen-Dazs have faced significant declines in 2025, with Zhong Xue Gao filing for bankruptcy and Haagen-Dazs reducing its store count, indicating a shift in consumer preferences towards more affordable options [1][15]. Group 1: Zhong Xue Gao's Rise and Fall - Zhong Xue Gao emerged in 2018 with a high-priced product, the "Ecuadorian Pink Diamond" ice cream, priced at 66 yuan, which created a sensation in the market and led to sales of 20,000 units in a single day [3]. - The brand's revenue exceeded 1 billion yuan in 2021, becoming a staple in live-streaming sales, but faced backlash over its high prices and accusations of false advertising [3][5]. - By 2025, Zhong Xue Gao was unable to pay its debts, leading to bankruptcy proceedings initiated by creditors, with the company facing 112 risk indicators and 67 legal cases [7]. Group 2: Haagen-Dazs and Market Trends - Haagen-Dazs, once a symbol of luxury in the ice cream market, has seen a significant reduction in its store count from 466 in January 2024 to 385 by June 2025, indicating a retreat from its premium positioning [15]. - The brand has started offering products at lower price points, such as 9.9 yuan coffee, to compete with more affordable options, reflecting a broader trend where consumers prefer value over luxury [15]. - The rise of budget ice cream brands and the resurgence of classic low-cost options have led to a decline in the market share of high-priced brands, as consumers prioritize affordability [16].

Core Insights - The phenomenon of "ice cream assassins," referring to overpriced ice cream products that are not clearly priced, has led to significant market challenges, with many of these brands nearing bankruptcy [1][4]. Group 1: Market Trends - The market for high-priced ice cream has shifted dramatically, with consumers now more aware of pricing, leading to a decline in sales for brands that previously thrived on premium pricing strategies [1][4]. - The once-popular brand Zhong Xue Gao, known for its high-priced ice cream, is facing bankruptcy proceedings for its subsidiary, indicating a broader trend of financial distress among premium ice cream brands [4]. Group 2: Company Specifics - Zhong Xue Gao's flagship product, the "Ecuadorian Pink Diamond" ice cream, was sold for 66 yuan and achieved significant sales initially, but the company has since faced multiple legal and financial challenges, including over 80 million yuan in execution orders [4]. - The current product offerings in Zhong Xue Gao's online store have been significantly reduced, with only a few flavors available, reflecting the company's operational difficulties [4]. - Häagen-Dazs, another premium brand, is also adjusting its strategy by introducing lower-priced items, such as limited-time offers starting at 9.9 yuan, in response to changing consumer preferences and market conditions [4].

Core Viewpoint - The article discusses the recent developments in the ice cream market, particularly focusing on the independence of Magnum Ice Cream Company from Unilever and the competitive landscape in China's ice cream industry. Group 1: Company Developments - On July 1, Magnum Ice Cream Company officially completed its separation from Unilever, which previously held a 20% global market share in the ice cream sector with brands like Cornetto and Magnum [5][6]. - The new company plans to go public with an IPO in Amsterdam by Q4 2025, with additional listings in London and New York [8]. - The ice cream market in China is projected to reach a scale of 183.5 billion yuan in 2024, indicating significant growth potential [18]. Group 2: Market Competition - The article highlights the competitive dynamics in the Chinese ice cream market, where local brands like Yili and Mengniu are gaining market share against Unilever [16]. - In 2024, the top three companies in the Chinese ice cream market by retail sales are Yili, Unilever, and Mengniu, with the leading brands being Chao Le Zi (Yili), Yili, and Kele Duo (Unilever) [16]. - The market is experiencing a surge in new entrants, with over 41,200 ice cream-related companies registered as of May 2023, indicating a rapidly evolving competitive landscape [21]. Group 3: Consumer Trends - The article notes that consumer preferences are shifting, with new tea and coffee brands entering the ice cream space, offering products at lower price points [31]. - Instant retail is becoming a significant channel for ice cream sales, with a projected sales scale of over 63 billion yuan by 2026 [34]. - The diversification of consumption scenarios for ice cream, including workplace snacks and outdoor activities, is becoming a trend, suggesting that brands need to adapt to changing consumer behaviors [34].