Why Can Mr. Barbarian Still Open So Many Stores Despite Luo Yonghao’s Criticisms of “Tasteless” Ice Cream?
Hello, friends! I’m your financial observer.
Recently, a post from Luo Yonghao on his social media platform has put the “Mr. Barbarian” ice cream brand in the spotlight. Luo Yonghao said, “It tastes much worse than Zhong Xuega... Considering the price, it’s actually quite unpleasant.” This statement caused a huge stir online. On one hand, there were negative reviews from a popular influencer; on the other hand, the brand has opened over 1,700 stores nationwide, second only to DQ in popularity.
This presents a classic business paradox: Why does a brand that’s criticized for being both expensive and bad-tasting do better than the once-prestigious ice cream giants like Zhong Xuega?
Today, we’ll break down this phenomenon in simple terms and analyze the underlying business logic from five perspectives.
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1. The “Freshness” Deception: What You Think Is Fresh May Be Half-Finished in the Factory
The core of the controversy isn’t so much the taste as a crisis of trust. Mr. Barbarian’s slogan, “Made Fresh Every Day,” implies that the ice cream is made with fresh milk and fruits right in front of you by the staff. However, consumers discovered frozen milk powder packets in the stores, with a shelf life of up to six months.
It’s like going to a coffee shop that claims to use freshly ground beans, only to find that the beans are already ground and packaged in advance, and even the milk is a pre-mixed concentrate. The illusion of freshness is shattered instantly.
Here’s an important clarification:
- A six-month shelf life doesn’t mean the product has been stored for that long: Just like milk in the supermarket, a one-year shelf life doesn’t mean it’s been there for a year.
- Pre-finished ingredients are common in traditional Italian Gelato production: Using pasteurized milk and nut sauces is standard practice. The traditional Italian process includes mixing, pasteurizing, and maturing the ingredients the night before.
So, is Mr. Barbarian wrong? From an industry perspective, it’s not illegal or fraudulent. They use a model where the ingredients are prepared in a central factory and then finished at the store. The mistake lies in the miscommunication: Consumers expect the entire process to be fresh, but the brand didn’t clearly explain that the milk powder is made in the factory and only the final mixing is done on-site.
Conclusion: This is a communication issue, not a food safety problem.
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2. Changing Consumer Expectations: Why Pay More for Ice Cream?
Many people wonder why people are willing to pay more for Mr. Barbarian’s ice cream (28-38 yuan) than Zhong Xuega’s (20 yuan+) when both are ice cream. The answer lies in the context:
- Zhong Xuega’s context: It’s usually found in convenience store freezers, where prices are lower. The comparison makes consumers feel they’re being overcharged.
- Mr. Barbarian’s context: It’s located in shopping centers, surrounded by brands like Starbucks and Xicha. In this setting, consumers see it as part of a “leisure dining” experience, and they’re willing to pay more for “freshness, quality service, and a nice atmosphere.”
Conclusion: Mr. Barbarian has successfully repositioned itself as something more than just ice cream, appealing to the desire for a more premium experience.
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3. Clever Marketing: Using “High-End” to Appeal to the “Affordable” Market
Mr. Barbarian uses marketing tactics like anchoring and coupon offers to lower the perceived cost. The high initial price creates an expectation of luxury, and then discounts make it seem more affordable. This strategy targets consumers who want a high-end experience at a lower price.
Conclusion: This marketing approach effectively lowers the barrier to entry and encourages repeat purchases.
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4. The Profitability of Gelato
Gelato is a highly profitable business. The cost of making one ball of ice cream is around 6.7 to 8.4 yuan, and with a selling price of 28-38 yuan, the margin is substantial—about 71% on average. This makes it attractive for both tea brands and luxury brands looking to expand into the market.
Conclusion: The high profit margin means Gelato is a lucrative business, especially in a market where consumers are willing to pay more for a premium experience.
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5. The Long-Term Sustainability of Mr. Barbarian
Luo Yonghao’s criticism raises the question of whether Mr. Barbarian’s success can last. The brand’s success relies on three factors:
1. Freshness: As more brands enter the market, the novelty will fade.
2. Social appeal: The brand’s uniqueness will diminish if other brands offer similar experiences.
3. Quality and value: The brand needs to maintain its quality and justify the high price.
Conclusion: Mr. Barbarian’s longevity depends on its ability to continue providing a premium experience that meets consumer expectations. If it can’t maintain this, its success may be short-lived.
In conclusion, Mr. Barbarian has leveraged consumer psychology and market opportunities well. However, in the business world, no advantages last forever. As the market evolves, Mr. Barbarian must prove that its products are truly worth the price. Otherwise, its success could be at risk.