Zhong Xuegao's "Rebirth": From "Ice Cream Assassin" to "Affordable Brand" – Can This Game Still Be Played?
Hello everyone, I'm your financial journalist. Today, we're going to talk about a name that many of you are both familiar with and yet somewhat unfamiliar with: Zhong Xuegao.
If you remember the brand a few years ago, jokingly known as the "Ice Cream Assassin," which sold high-end ice creams for dozens or even hundreds of yuan, you must have been quite impressed by Zhong Xuegao. However, recently, this once-glorious brand has gone through a dramatic transformation of "death" and "rebirth": the original company went bankrupt and its assets were auctioned off. Now, a new team is ready to make a comeback to the market with newly priced products.
What exactly is going on? Is Zhong Xuegao just making a comeback from the dead, or has it truly undergone a spiritual rebirth? Let's break down this situation in five key aspects.
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1. Complete Identity Change: It's Not the "Old Zhong" Returning, but a "New Zhong" Going Public Through a Merger
First of all, we need to clarify a crucial legal fact: the current Zhong Xuegao is a completely different entity from the one that used to make you feel "stabbed" by its prices. The original operating company, Zhong Xuegao Food (Shanghai) Co., Ltd., has gone through bankruptcy and liquidation, meaning it is technically "dead." Its valuable assets, such as trademarks and patents, were auctioned and sold for 21.1 million yuan to a new buyer.
The brand has been taken over by a new company called Zhong Xuegao Brand Management (Shanghai) Co., Ltd.. Although the name contains the word "Xue" (ice cream), it's essentially the same brand. Who are the owners of this new company?
- Major shareholder: Wang Yaqing (60% of the shares)
- Second-largest shareholder: Changsha Hujia Food Technology Co., Ltd., which is behind another popular ice cream brand, Royal Xiao Hu.
In simple terms: It's like an old restaurant that closes down, and its sign, recipes, and patents are auctioned off. A new owner buys these "intangible assets" and opens a new store under the same name. The chefs, owners, and financial backers have all changed. The new owner has also partnered with the influential Royal Xiao Hu on social media, although it's just a financial investment for now, with no immediate business collaboration. This move is clearly aimed at building a stronger supply chain and distribution network.
So, this reboot is not a comeback by the original team but a complete asset acquisition followed by reoperation.
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2. Price Drop: From "Elite Brand" to "Affordable Option"
The most noticeable change is the price. Previously, Zhong Xuegao's main products ranged from 13 to 20 yuan, emphasizing "luxury," "imported ingredients," and "refined lifestyle." Now, the three new products (Qing Niu Ru, Silk Velvet Cocoa, and Ban Ban Qiao Qiao) are priced at 6.9 yuan, 7.9 yuan, and 7.9 yuan respectively.
What does this mean?
- Lower entry barrier: Before, buying Zhong Xuegao meant considering whether the price was worth it; now, for just 7 yuan (about the cost of two bottles of water), consumers can easily give it a try.
- Shift in positioning: The brand no longer aims to be the "domestic version of Hermes" but has entered the more competitive 6-10 yuan price range, where its competitors include giants like Mengniu, Yili, and Nestle.
However, there's a catch: The news suggests that the factory price of the new products remains similar to before, but the retail price has been reduced significantly.
- Previously: High factory prices meant higher retail prices, leaving more profit for distributors, supermarkets, and logistics companies.
- Now: With the retail price cut in half, these intermediaries have less profit to make.
In simple terms: It's like a piece of clothing that cost 100 yuan to produce and used to be sold for 200 yuan, with intermediaries making a 100 yuan profit. Now, the manufacturer still charges 100 yuan but requires the retailer to sell it for 120 yuan, leaving only a 20 yuan profit. This can lead to resistance from retailers and supermarket owners who wonder, "Why should I bother with this?"
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3. Distribution Reconfiguration: From Online Presence to Offline Focus
Zhong Xuegao used to rely on e-commerce, live streaming, and social media, typical of internet-famous brands. You could see ads online, place an order, and have the product delivered to your home. Now, the brand must return to traditional offline retailing.
Ice cream is a special product that can't be stockpiled at home; it needs to be available in supermarkets. Current situation: Giants like Yili and Mengniu have already occupied the best shelf spaces in supermarkets, and they offer stable discounts and promotions. Challenge: Zhong Xuegao needs to recruit new distributors and re-establish a distribution network from warehouses to stores. The original social media accounts have to be deleted, meaning the brand has to start from scratch in building trust.
In simple terms: Zhong Xuegao used to be a "star," with consumers coming to it voluntarily. Now, it has to engage in direct sales, negotiating with each supermarket for shelf space and offering commissions. In this context, connections and profit incentives are more important than brand loyalty. If the new company can't offer sufficient profits or ensure product sales, it won't be able to gain a foothold in supermarkets.
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4. Changing Consumer Behavior: Consumers Are More Pragmatic
Why could Zhong Xuegao sell at high prices before? Because people were willing to pay for the brand's story and luxury image. But now, things have changed:
- Value for money is key: More people are looking for good value for their money. If a product costs 7.9 yuan, they want to see tangible evidence of high-quality ingredients and taste, not just marketing claims about Swiss chocolate or New Zealand milk.
- Trust Issues: Zhong Xuegao has a negative reputation from past incidents. Even though the legal split has taken place, consumers' memories remain. When they see the brand name, they might think, "Has the price gone up again?" or "Is this just another marketing gimmick?"
- Intense Competition: In the 6-10 yuan price range, there are established brands like Mengniu, Yili, and Nestle with strong supply chains, quality, and distribution networks. It's very difficult for a new brand to compete.
In simple terms: Consumers now look for quality and value. The price cut may have removed the barrier of high prices, but it hasn't eliminated doubts about product quality. They might wonder, "If it used to cost 20 yuan, has the quality decreased?"
Rebuilding trust is harder than just lowering prices.
5. The Big Test: Sales Performance, Not Brand Emotion
The success of this reboot depends on three key indicators:
- Sales speed: How quickly do the new products sell once they're in stores? If they don't move, distributors will replace them with products from Yili or Mengniu.
- Distributor willingness to restock: Will distributors order more products after the first batch sells out? This depends on profit margins and turnover rates.
- Repeat sales: How many customers will buy the products again? Since ice cream is a frequent purchase, repeat sales are crucial.
In summary: Zhong Xuegao's reboot is a practical attempt to remove the brand's inflated image. It has abandoned its luxury aspirations and returned to the mass market, giving up online popularity in favor of offline sales.
Pros: The brand is still recognizable, its product packaging is distinctive, and the new team has operational experience (from Royal Xiao Hu). The prices are more affordable.
Cons: Profit margins for distributors are reduced, brand trust needs to be rebuilt, and competition from giants is fierce. Consumers are more rational.
In one sentence: Zhong Xuegao's rebirth means it's no longer the high-end "ice cream aristocrat" but an ordinary brand that needs to prove its value for money. Its survival depends on whether it can make retailers profitable and convince consumers that 7 yuan is worth spending.
Let's wait and see what happens in the fourth quarter.