It’s summer time in China. How to market ice cream in China is a hot topic for international and domestic brands. However, consumers are getting familiar with a new concept of expensive ice cream—’Ice cream assassin’.
Jenny is a 30-year-old executive from Shanghai. One day she was trying a peach-flavored popsicle from one of the newer domestic brands. However, she wasn’t expecting to shell out 22 yuan ($3.2). And that’s almost four times price of what her trusted brand costs. At first, she thought there might be something wrong with the price tag. When cashier confirmed the price, she considered herself as a victim of ‘ice cream assassin’.
The phrase has now become a new online buzzword for customers who have been caught off guard by expensive ice creams from obscure brands. Complaints over pricey ice creams from new domestic brands has taken over social media. So has the “sudden” disappearance of traditional popsicles in retail stores. Posts with a related hashtag have attracted over 600 million of views on Weibo since the end of June.
According to a recent report, China accounts for one of the world’s largest and fastest-growing ice cream markets. There was an estimated market size of more than 160 billion yuan in 2021. Domestic dairy enterprises have long focused on the country’s low-end vertical. For example, Yili and Mengniu offer products with a price between 2 yuan and 5 yuan. In the meantime, international brands have dominated the premium category.
Even though, new domestic players have gradually cracked the market since 2016 with marketing campaigns targeting young consumers willing to spend more. For example, one such brand, Zhongxuegao, introduced its first six ice cream products priced as much as 66 yuan in 2018. To everyone’s surprise, it went on to top the 2020 ‘Double 11’ shopping festival sales in ice cream category.
With marketing ideas enlightening the business success, more players are joining the game. In May, Chinese liquor brand Guizhou Moutai opened its first ice cream shop. And it launched a set of three alcohol-infused ice creams for an average price of 60 yuan.
However, the rising cost of raw materials, which has intensified amid the pandemic, has led to price hikes. The price of milk and cream has surged by 80% from 2008 to 2020.
Most customers accustomed to lower-priced ice creams say they’re not ready to pay premium prices for their beloved summer treat. A survey by market consultancy firm iMedia showed more than 80% of the surveyed consumers wouldn’t accept paying an ice cream priced at more than 10 yuan.
On social media sites such as the lifestyle platform Xiaohongshu, some users were offering ideas to dodge the so-called ‘ice cream assassins’.
Meanwhile, many ice cream lovers like Jenny believe the new products were enticing, but they would instead stay loyal to the brands that have been around for a long time since they’re used to both the flavor and the price.
‘I would rather buy four 5 yuan ice cream bars with a chocolate shell for the same price’; she said, referring to the pricer popsicle.
Deep Digital China has helped many international brands market their products in China. Just reach out to us if you want to market ice cream in China.