"Can't Even Pay Freezer Electricity Bills"... Ice Cream Brand's Value Plummets by 99%

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

Zhong Xuegao's Corporate Value Plummets by Over 99%
Number of Haagen-Dazs Stores in China Halved

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

According to Daxiang News in China on July 5, the overall retail industry in China is facing major difficulties, even though July is typically the peak season when business should be at its busiest. Industry insiders have been expressing their frustration and disappointment over poor sales through social networking services (SNS).

Chinese ice cream shops are experiencing severe sales slumps due to below-average temperatures and frequent heavy rain. Photo for article clarity. Pixabay.

Are Decreased Sales Due to Cooler Weather Than Usual?

Chinese ice cream stores are experiencing severe sales slumps due to lower-than-average temperatures and frequent heavy rains, according to Baidu China.

Yang, who has operated an ice cream shop for eight years, said that every July, sales would usually reach their peak and he would prepare for high-volume sales, but this year his shop was empty. He explained, "Temperatures in Hangzhou have not been as hot as last year, and due to the continued cool weather from heavy rain, sales have dropped by 15% 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 are people not eating ice cream?" and asked, "Are all the ice cream wholesalers doing okay?" Dong, who runs an ice cream shop in Xi'an, responded, "It rains frequently in Xi'an, and the high temperature is only 25–26 degrees Celsius, so there are no customers."

Some retailers are reportedly struggling so much with declining sales that they cannot pay for their freezer electricity bills. One wholesaler said, "There was a forecast for heavy rain, but it didn't come. I am watching over the freezer for more than 10 hours a day, but since ice cream isn't selling, I can't pay the electricity bill." The daily electricity bill is about 150 yuan (approximately 34,000 won).

Chinese ice cream shops are experiencing severe sales declines due to lower-than-average temperatures and frequent heavy rain. According to Weibo China.

Most food industry insiders agreed that the sluggish ice cream sales are due to the fact that the weather has not been as hot as in previous years and it has been raining frequently. In fact, nationwide data from China shows that the average temperature in June was 1.3 degrees Celsius lower than normal, while precipitation increased by 12.2% compared to the average year.

The End of the Premium Ice Cream Market... Consumers Turn to Online Shopping

According to information released by Chinese media, the corporate value of Zhong Xuegao, a well-known Chinese ice cream brand, has plummeted by more than 99% in recent years. The number of Häagen-Dazs stores in China has also been reduced by half. As a result, industry analysts are saying that the once-popular premium ice cream market has in effect come to an end. As consumer trust in high-priced ice cream declines, customers are increasingly turning to products with better cost-effectiveness.

Another factor accelerating the downturn for offline stores is the rapid growth of online platforms. Analysts say that aggressive discount events and fast delivery services on e-commerce platforms have impacted offline store sales. It is explained that the price competitiveness and convenience of delivery are changing consumers' purchasing habits. In addition, there is an ongoing health trend where consumers prefer wellness products with lower sugar content and higher protein content, leading to a natural transformation of the Chinese ice cream market.

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