As summer approaches, the ice cream sales season is in full swingThis year, however, a shift in consumer preferences has emerged, steering the conversation away from the trendy "celebrity ice creams" and "ice cream assassins" of recent years, towards a more grounded focus on affordable ice cream options.

On June 2, the phrase "Ice Cream Returns to the 5 Yuan Era" trended on Weibo, amassing over 60 million viewsA few days later, the topic of "Maotai Ice Cream Buy One Get One Free, No One Eats It," stirred up significant discussionPreviously known for its steep prices that earned the "ice cream assassin" label, Zhong Xuegao has begun to embrace a more budget-friendly approachThis shift is illustrated by founder Lin Sheng's recent broadcast where he sold sweet potatoes to pay off debts, alluding to the struggles of high-end, influencer-led brands within the ice cream market.

While high-end, influencer-driven ice creams are losing steam, affordable options haven't remained stagnant; they, too, are seeing price adjustments

Various brands are adapting through cross-industry partnerships, flavor innovations, and innovative distribution channels, leading to product iterations and upgradesThe middle to high-end market will remain a battleground for many brandsHowever, as consumer psychology and demands evolve, the challenge for all companies will be innovating their products and enhancing their value propositions.

Jan Junhao, founder of Fujian Huace Brand Positioning Consulting, shared insights with reporters, explaining that the decline of high-end celebrity ice creams stems from their overt "celebrity" brandingThese products prioritize novelty and trendiness over establishing a unique value in consumers' mindsConsequently, the future of the ice cream market will shift its competitive focus towards quality and experiential offerings.

Gone are the days of the "ice cream assassins."

"It's not that we can't afford the expensive options; we just prioritize cost-effectiveness," many social media users lamented this summer.

Lin Sheng's live stream showcasing "selling sweet potatoes to pay off debts" recently reignited discussions about ice cream pricing

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In 2018, Zhong Xuegao burst onto the scene with its $10 ice cream product, which quickly went viral and dominated social media conversationsHowever, with media scrutiny labeling it an "ice cream assassin" and reports of "ice cream that won't melt," Zhong Xuegao encountered operational struggles.

Representing a broader trend, the coolness surrounding high-end celebrity ice creams indicates that affordable options are now at the forefrontA recent investigation by reporters across various retail stores in Beijing revealed that classic ice cream varieties dominate the freezers this year, with innovative celebrity options becoming increasingly rarePrices ranged generally from 3 to 10 Yuan, indicating a slight upward trend overall.

A local convenience store owner noted that this year's selection of ice creams was slimmer compared to previous years, with classic flavors and popular brand lines selling better

The prices in his store ranged mostly between 3 and 5 Yuan, with limited brand offeringsConversely, at larger chains like Yonghui, selections were more robust, with individual items typically priced under 10 Yuan and dominated by well-known brands.

The competition among affordable ice creams remains fierce, with many retailers engaging in price warsIn one small supermarket, the owner noted discounts for purchases of ten or more ice creamsIn another instance, a distributor offered a significant discount for bulk purchases, plus a few freebiesOnline platforms buzz with promotional activities like group buying and discountsFor instance, a promotion for Qiao Le Zi shows a deal of 98 Yuan for 30 pieces, subsidized by 101 Yuan, which is significantly lower than the brick-and-mortar price of 4 Yuan each.

Tong Chunping, head of Hongbaolai Cold Drink World, recently explained to the media, "Our total expenditure on inventory this year has decreased by 230,000 Yuan compared to last year, meaning we’ve sold that much less ice cream.” She attributes this downturn to changing consumer willingness to spend and increased market competition, noting how platforms like Meituan and Pinduoduo are disrupting traditional wholesale with lower pricing strategies.

For brand owners, the competition also boils down to channel control

Notably, major brand lines maintain significant shelf space at both small convenience shops and large supermarkets.

Consumer behavior and spending habits are changing, with an increasing emphasis on rational spending and value for moneyAnalyst Zhu Danpeng pointed out that the high-end "ice cream assassin" segment is quietly retreating as the market transitions towards more mid-range and high-quality offerings, which will likely dominate the future.

Why have high-end influencer ice creams struggled to maintain market presence? Jiang Han, a senior researcher at the Pangu Institute, suggests that the sheer number of ice cream brands available means consumers enjoy a breadth of choices, making monopolistic high pricing untenableAdditionally, many influencer products suffer from inconsistent quality; in their quest for uniqueness, they often overlook stable product quality and consistent taste, resulting in potential consumer disappointment

Misalignment between consumer experiences and price only exacerbates this issueFurthermore, the lack of sustained brand identity and market development inhibits long-term success for these high-priced offerings, as repeat purchases are key.

The nature of ice cream consumption plays a role as wellJan Junhao elaborated: "Ice cream, as a fast-paced, on-the-go indulgence, features instant gratification and clear seasonalityConsequently, consumers often seek immediate enjoyment from their purchases, making them more price-sensitiveIn contrast, durable goods or luxury items justify their high price tags because they convey value to consumersPresently, ice cream's inherent value limits the prices it can achieve."

As previously mentioned, MsZhang, a consumer, reflected on her experience with high-priced influencer ice creams: "It’s not about whether I can afford to spend 50 Yuan; it’s just that there seems to be no necessity since the experience isn’t significantly different from a few Yuan ice cream

The only time I splurged on expensive ice cream was during a trip, largely for Instagram photos.”

Enhancing perceived value is crucial.

Not all high-end influencer ice creams are without meritDespite past criticisms, culturally themed ice creams continue to find favor among consumers.

Such items have become staples in tourist attractions, museums, and travel destinations, adding a touch of personality to the experienceFor many visitors, snagging a culturally themed ice cream for photos is now a travel essentialNotably, following Gansu’s cultural tourism boom this year, a variety of uniquely flavored cultural ice creams from the northwest have gained popularityDuring this year’s Children’s Day on June 1, the Wuhan Cultural Tourism Group launched a glowing Huanghelou ice cream, while the National Botanical Garden's "Plant This Spring" market promoted various unique flavored products.

However, the pricing for culturally themed ice creams tends to be higher, often ranging from 15 Yuan to 25 Yuan, surpassing mainstream ice cream prices.

But why do these culturally themed products still perform well despite their higher costs? Jiang Han offers insights indicating that consumers are increasingly drawn to uniqueness and quality, as well as the cultural narratives that come with products

By fusing traditional cultural elements with modern design, cultural ice creams create distinctive offerings that cater to consumer desires for both individuality and qualityThe act of purchasing such ice creams also allows consumers to engage with cultural experiences tied to specific contexts; without these connections, interest wanes, emphasizing the need for a backdrop of cultural authenticity.

Furthermore, several industry insiders have highlighted a shared keyword: value perceptionTake Häagen-Dazs as an example, which has successfully redefined the ceiling for ice cream pricingBeyond materials, production methods, and flavor varieties, its enduring position in the high-end market and luxurious brand perception have carved out its niche as the "luxury ice cream" in consumers' mindsThis high-end positioning appeals to those who value quality and experience, providing a significant premium margin.

Society’s consumption trends have evidently shifted from merely focusing on material goods towards cherishing experiences derived from consumption

The new wave of consumerism has endowed ice cream with emotional values associated with social connection, cultural appreciation, and tastes of styleThus, domestic brands are starting to enhance their product value through collaborations across various sectors and immersive experiences.

A spokesperson from Mengniu reported that several of their brands have been engaging in collaborations and co-branding initiatives to amplify brand valueFor instance, the Ice+ series collaborated with "Super Adventure" to produce a unique beer-flavored ice cream.

Bai Wenxi, Vice President of the China Enterprise Capital Alliance, underscored that consumer expectations for collaborative products extend beyond the items themselves, encompassing the narratives and emotional ties behind themSuccessful crossover products stand out because they harmoniously integrate cultural elements with the ice cream, thereby creating unique product experiences and brand resonance.

Regarding Yili, they reveal plans for 2024 to balance the deliciousness, health, and nutritional aspects of their ice cream offerings to fit emerging purchasing contexts, like sharing or office scenarios, with numerous new products to be unveiled