Core Viewpoint - The article discusses the decline of Häagen-Dazs in the Chinese market, highlighting its struggles against cheaper ice cream brands and changing consumer preferences, leading to a significant reduction in store numbers and sales [1][3][19]. Group 1: Company Performance - Häagen-Dazs' net sales in China for the third quarter of fiscal year 2025 were reported at $138 million, reflecting a year-on-year decline of approximately 3.2% [3]. - The number of Häagen-Dazs stores in mainland China has halved from 557 in 2019 to only 263 currently, indicating a severe contraction in its physical presence [4]. - The CEO of General Mills acknowledged a double-digit percentage decline in store traffic for Häagen-Dazs in China [3]. Group 2: Market Dynamics - The rise of affordable ice cream brands has shifted consumer preferences, with many opting for lower-priced options, making it difficult for Häagen-Dazs to attract customers [6][29]. - Häagen-Dazs was once perceived as a luxury brand, but its image has deteriorated as consumers now view it as overpriced and outdated [22][29]. - The competitive landscape has intensified, with local brands like Zhong Xue Gao and others introducing innovative and cost-effective products that challenge Häagen-Dazs' market position [22][28]. Group 3: Consumer Sentiment - Consumers have become more price-sensitive, with many expressing disbelief at Häagen-Dazs' high prices compared to similar products available at much lower costs [21][30]. - The nostalgia associated with Häagen-Dazs has not translated into sustained consumer loyalty, as younger generations prioritize value and health in their purchasing decisions [19][30]. - The perception of Häagen-Dazs as a "high-end" product has been undermined by its recent controversies, including the use of inferior ingredients, further alienating its customer base [22][29].

Core Viewpoint - Häagen-Dazs, originally positioned as a high-end ice cream brand, is facing challenges in the Chinese market due to changing consumer preferences and increased competition from local brands and alternative dessert options [5][6][10]. Brand Positioning and Market Entry - Häagen-Dazs was established in 1921 and entered the Chinese market in 1996, targeting high-end consumers with a premium brand image [1]. - The brand aimed to align itself with luxury brands, using upscale store locations and a sophisticated design to enhance its premium perception [1][2]. Sales Performance and Growth - By 2010, Häagen-Dazs had achieved over $100 million in sales in China, growing at a rate of 20% [2]. - The period from 2005 to 2015 was identified as a golden era for the brand, with an average sales growth rate of 23% [3]. Decline in Consumer Interest - Recently, Häagen-Dazs has experienced a decline in customer traffic, with reports of double-digit decreases over three consecutive quarters [3][6]. - The brand's high pricing strategy is being questioned as consumer preferences shift towards more affordable options [6][10]. Competitive Landscape - The brand's high-end image is being challenged by local ice cream brands and the rise of dessert alternatives like tea drinks and coffee [6][9]. - A survey indicated that 80% of consumers believe a reasonable price for ice cream is under 10 yuan, with only 5% willing to pay over 15 yuan [6]. Brand Image and Product Offerings - Häagen-Dazs has been criticized for its lack of product diversity and innovation, failing to introduce popular flavors or products in recent years [8][9]. - The brand's traditional European romantic image is seen as outdated in a market that increasingly values local culture and personalized experiences [8]. Strategic Shifts - In response to declining store traffic, Häagen-Dazs has expanded its retail presence in supermarkets and convenience stores, with increasing market share in these channels [10]. - The brand is also focusing on B2B opportunities, supplying ice cream for high-end restaurants, hotels, and other venues [10].