"Can't Even Pay the Freezer Electricity Bill"... Ice Cream Company Sees 99% Plunge in Brand Value

Sluggish Sales Due to Cool Temperatures and Frequent Heavy Rain
Growth of Online Platforms Also to Blame

Zhongxuegao’s Corporate Value Plunges Over 99%
Number of Haagen-Dazs Stores in China Halved

Chinese ice cream stores are experiencing severe sales slumps due to lower-than-average temperatures and frequent heavy rains. In addition, changes in consumer trends and the rapid growth of online platforms have put even premium ice cream brands, which once dominated the market, at risk.

According to Daxiang News in China on July 5, the Chinese retail industry as a whole is facing significant difficulties, even though July should be the busiest season during the height of summer. Industry insiders have been expressing their frustration and concerns over the sluggish sales through social networking services (SNS).

Chinese ice cream stores are experiencing severe sales declines due to lower-than-average temperatures and frequent heavy rains. A photo to help understand the article. Pixabay.

Is the decline in sales due to cooler-than-average weather?

Chinese ice cream shops are experiencing severe sales slumps due to lower-than-average temperatures and frequent heavy rains. According to Baidu in China.

Mr. Yang, who has operated an ice cream shop for eight years, shared that every July, sales usually reach their peak, prompting him to prepare for high-volume sales. However, this year his shop has remained empty. He said, “Temperatures in Hangzhou have not been as hot as last year, and the continued cool weather due to heavy rains have led to a 15% drop in sales compared to the same period last year.”

According to reports, this situation is occurring across China. The owner of an ice cream shop in Wuhan recently posted on SNS, “It’s not even the off-season, so why aren’t people eating ice cream?” and added, “Are all the ice cream wholesalers doing okay?” Mr. Dong, who runs an ice cream shop in Xi’an, replied, “In Xi’an, it rains frequently and the highest temperatures are only around 25 to 26 degrees Celsius, so there are no customers.”

Some retailers are struggling so much with falling sales that they are unable to pay their freezer electricity bills. One wholesaler said, “Rain was forecast, but it didn’t come. I’m guarding the freezer for over 10 hours a day, but since ice cream isn’t selling, I can’t afford to pay the electricity bill.” The daily electricity cost is about 150 yuan (approximately 34,000 won).

Chinese ice cream stores are experiencing severe sales slumps due to lower-than-average temperatures and frequent heavy rains. According to China's Weibo.

Most food industry insiders agree that the main reasons for the poor ice cream sales are the cooler-than-usual weather and the frequent rain compared to the same period in previous years. In fact, looking at nationwide data in China, the average temperature in June was 1.3 degrees Celsius lower than usual, while precipitation increased by 12.2% compared to the average year.

The end of the premium ice cream market... Consumers shift to online shopping

According to materials released by Chinese media, the corporate value of Zhongxuegao, a well-known Chinese ice cream brand, has plunged by more than 99% in recent years. The number of Haagen-Dazs stores in China has also halved. As a result, the industry is analyzing that the once-popular premium ice cream market has effectively come to an end. As trust in high-priced ice cream declines, customers are gradually turning to more cost-effective products.

The rapid growth of online platforms is also cited as another factor exacerbating the offline store downturn. Bold discount events and fast delivery services offered by e-commerce platforms are impacting offline store sales. The price competitiveness and convenience of delivery are changing consumer purchasing habits. Furthermore, the trend toward health-conscious products—with reduced sugar and higher protein content—is also influencing the natural transformation of the Chinese ice cream market.

This content was produced with the assistance of AI translation services.