On April 21, according to Sina Finance CEO Deng Qingxu's Weibo content, Lin Sheng, the founder of Zhongxuegao, took a green train to Beijing overnight after being "restricted".
In this regard, Lin Sheng also said on Weibo: "Although Zhong Xuegao is currently facing many difficulties, our determination to change and take responsibility has not changed. Lin Sheng also said, "Don't run, don't worry, don't cowardice." This is the background color of China's private entrepreneurs.
Screenshot of the cover story
Netizens commented:
According to public information, Zhongxuegao is no longer priced at a high price, and its expiring products are even as low as 2.5 yuan.
It was sold for 66 yuan, and one is "Hermes in ice cream"
Founded in 2018, Zhongxuegao uses the three surnames "Zhong", "Xue" and "Gao" in the hundred family surnames to form a brand name, which means "China's ice cream".
Image source: Zhong Xuegao Weibo
At the beginning of its establishment, Zhongxuegao established the high-end route, the pursuit of less but fine, and the pricing of its conventional ice cream products was basically between 13 and 18 yuan.
In 2018, Zhong Xuegao launched the "Ecuador Pink Diamond" ice cream, the price was 66 yuan / piece, limited sale, on the day of Double 11, the launch of 20,000 copies of "Ecuador Pink Diamond" ice cream was sold out within 15 hours of being put on the shelves. Zhong Xuegao also became an instant hit and became a representative of high-end ice cream, known as the "Hermes of the ice cream industry", and became an Internet celebrity ice cream that young people rushed to check in.
In 2021, Zhong Xuegao proposed to redefine ice cream with a dessert strategy, and launched four new products that year: "Zhimei Longli", "Xingyu Nian", "Heyou Cheese" and "Pear Blossom Fall", of which "Zhimei Longli" is priced at 88 yuan / box, "Xingyu Nian" is priced at 68 yuan / box, "He You Cheese" is priced at 88 yuan / box, and "Pear Blossom Fall" is priced at 78 yuan / box.
The sales of Zhongxuegao products, which attract consumers' attention with high prices, national style, and limited sales, have risen rapidly. 16 months after the establishment of Zhongxuegao, the revenue exceeded 100 million yuan, in 2021, Zhongxuegao sold a total of 152 million ice cream, and in 2022, in just 5 months, Zhongxuegao's ice cream shipped out of the warehouse will be 220 million pieces.
However, because of the high price, Zhong Xuegao has repeatedly fallen into the whirlpool of negative public opinion such as "ice cream assassin" and "sky-high ice cream", and has almost become the target of public criticism.
Zhong Xuegao and his founder were limited in height
In March 2024, according to the China Enforcement Information Disclosure Network, Zhongxuegao Food (Shanghai) Co., Ltd. and its legal representative Lin Sheng were recently restricted from high consumption due to failure to perform the payment obligations determined by the effective legal documents within the period specified in the enforcement notice.
Zhong Xuegao Company and Lin Sheng were restricted from high consumption Image source: Qichacha
Is there still room for Zhong Xuegao?
Zhong Xuegao's ascent seems to have been over for a long time.
On March 6, 2024, the topic of "Zhong Xue's high price dropped from 60 yuan to 2.5 yuan" appeared on Weibo hot search. However, it should be noted that in the hot search related articles, there is no mention of price reduction products. Previously, Zhong Xuegao launched the ice cream Sa'Saa, which was priced at only 3.5 yuan. If the price of this product is 2.5 yuan, it may not be news.
But Zhong Xuegao is indeed under pressure. In 2023, Zhong Xuegao has experienced crises such as unpaid wages and employee turnover. In 2024, Zhong Xue Gauguin will experience problems such as the freezing of his million-yuan equity and financial crisis.
There are multiple factors behind this.
The ice cream market is bidding farewell to high growth. According to the trade media China Ice Cream, an ice cream distributor in Henan Province said it still has more than 2,000 boxes in stock in its stock, a number that has never been seen in previous winters. The report also said that such situations are not uncommon.
On the other hand, market competition is intensifying. In the high-end sector, Moutai ice cream has sprung up. According to Moutai's disclosure, in 2023, Moutai's ice cream division will achieve revenue of 430 million yuan, a year-on-year increase of 58.24%. In the same year, the revenue growth rate of Yili and Mengniu ice cream business reached double digits. In the cost-effective market, the crazy expansion of Mixue Bingcheng has launched a fresh ice cream priced at 2 yuan, and even McDonald's is also vigorously promoting fresh ice cream.
All of the above have squeezed Zhong Xuegao's living space.
On the whole, Zhong Xuegao, who has sprung up in the wave of consumption upgrading by relying on marketing and products, has indeed encountered fundamental changes.
There may be another trend behind it, as giants flock to market segments, is there still room for new consumer brands?
Sources: @邓庆旭, @林盛钟薛高, 21st Century Business Herald (He Hongyuan), China Executive Information Disclosure Network, National Business Daily, Enterprise Chacha, Public Information