Who is dividing up China’s 100 billion yuan ice cream market?

Posted by Admin on April 27, 2021 in Brands in China

Many food brands from abroad are popular in China. For example, the ice cream is popular all over the country in summer. There are so many ice cream brands in China, but foreign brands such as Wall’s, Haagen-Dazs, BAXY, Nestle occupy most of the high-end market and part of the middle end market in China; Chinese local brands such as Mengniu, Yili and Guangming are mainly midmarket; The regional old ice cream enterprises such as Deshi, Tianbing and a large number of small and medium-sized local private enterprises are positioned at the middle and low end. In China, ice cream with less than 3 yuan is hard to see.

Wall’s has a long history of producing ice cream, which belongs to the brand of Unilever group. In 1993, Unilever’s Wall’s brand entered China to invest and build a factory. Just entering China, Wall’s quickly entered the vision of Chinese consumers by using the “freezer strategy”. Every year, it put 6000 freezers into the Chinese market. At that time, the convenience stores and small supermarkets in China’s streets were all occupied by the freezers printed with the “Wall’s” logo.

With the continuous innovation, Wall’s mainly promotes three series of products in China, which are Cornetto with good-looking packaging, Magnum positioning in high end consumers, and Maikushi specialized in children’s market, which occupied China’s medium and high-end products market. Its success is inseparable from its shelf competition in the early stage of the market, that is, it has seized the channel and the vision of consumers offline, and has gained an advantage when China’s ice cream market broke out.

In 1996, the first Haagen Dazs store in Chinese mainland opened in Shanghai. Haagen Dazs, which has just entered the Chinese market, has been sought “crazily”. As long as the store is named Haagen Dazs, all seats are occupied. Although the price is too high, many people are willing to pay for the high price. Haagen Dazs in China is five times more expensive than that in the United States and three times more expensive than that in Europe. Haagen Dazs is aiming at the Chinese people’s demand for high-end consumption experience, It fills in the blank of domestic similar consumption situation. Chinese consumers regard Haagen Dazs as high-end consumer goods, and the top three consumption situations are celebration of festivals, dating of lovers and gathering of friends.

BAXY ice cream, a well-known American brand, was founded in San Francisco in 1932. It is a dessert brand with ice cream as the main component. Its ice-cream is made of pure milk ice-cream, which is favored by people for its delicate taste, fresh and pure fruit flavor and rich nutrition. In 1990, it entered Beijing, China, and established Beijing Allied Faxi Food Co., Ltd., with a registered capital of 133.14 million yuan, which is committed to building a national famous ice cream brand.

At present, Nestle’s ice cream business has three pillar brands: Wuyang brand, which is concentrated in South China and originated in Guangzhou; Chengzhen, whose target customers are people who pay attention to quality and raw materials; The third is 8power, the target customers of this brand are young people who like to share and have different experiences. This product is also a small size convenient for young people to share.

According to the survey data of China Food Industry Association, in 2014, the scale of China’s ice cream market was only 70.8 billion yuan, and it rapidly increased to nearly 138 billion yuan in 2019. The scale of China’s ice cream market ranks first in the world. Market expansion also gives the brand more development opportunities.