China Food

The consumption per capita is less than 3kg. Why is ice cream more and more expensive?

 


比谁的原料更高级,联名做营销,是网红雪糕打出的涨价法则。

 


The eaters can’t afford ice cream.

It’s getting hotter, and it’s the peak season for the ice cream industry. When you go into a convenience store or open the take away software, you can find more varieties of ice cream – foreign brands such as Helu snow, Nestle, Yili, Mengniu and Baxi, and new brands such as Zhongjie 1946, Zhong Xuegao and orange planet share more than 80% of the domestic ice cream market share.

The addition of new players speeds up consumer choice, but also makes ice cream more expensive. Some time ago, Zhong Xuegao launched a boxed ice cream, which costs 199 yuan. Even if it’s expensive, there’s still no market for it. Once it’s on the shelves, it’s swept away. And those classic models of childhood, because the price is cheap and the profit is thin, are rejected by many convenience stores.

“You can’t buy it directly, you have to distribute it. In order to buy two new boxes, we have to go with another 16 old ones. The average price is 12 yuan. You have to spend at least five or six hundred yuan to get new products. ” A consumer told “e-commerce online” that it is not so much like ice cream as a little cake of Internet red. “I’m very satisfied with the taste and the photos.”

Zhimei Longli and apricot developed by Zhong Xue

According to the survey data of China Food Industry Association, China’s ice cream market is the largest in the world and is expected to exceed 160 billion yuan in 2021.

In the past, Haagen Dazs, which costs 35 yuan a ball, is the “Hermes” in ice cream. These foreign high-end brands have transformed ice cream from a seasonal product for relieving summer heat and thirst into a more frequent and emotional online snack. But now, domestic brands are not willing to only occupy the low-end market, they decided to be high-end and grab the business of big brands.

When the price of an ice cream can buy a cup of milk tea, will you pay for it? Behind the price increase, what is the premium of these ice cream propped up?

The law of price increase of wanghong ice cream

When you walk into the convenience stores such as the family and 7-Eleven, the freezers are filled with all kinds of ice cream, from the ones you are familiar with to the ones you can’t name. But the price is not as “fragrant” as you think it is – there is almost no trace of ice cream below 5 yuan. More than 95% of the ice cream prices are above 10 yuan. A Sofia milk ice cream even costs 45 yuan, which is more expensive than Haagen Dazs.

The red bean and mung bean popsicles that you often eat are not available in the big convenience stores. The price of the classic bright ice brick has also increased, jumping from 2 yuan to 5 yuan. ” E-commerce online “reporters come to the ice cream wholesale market to find them. These old brands of ice-cream have a fixed number of consumers, and the price rise space is limited, but many ice-cream have quietly become smaller – originally 100g, now 60g, the price increase is invisible.

The price of ice cream in the family convenience store

Why is the price of ice cream going up? Mai Junfeng, a person in charge of high-end ice cream in restaurants, said that the first reason for the rise in the price of ice cream was the rise in the price of raw materials. “From 2008 to 2020, the cost of milk and cream rose by about 80%. We expect the price of raw materials to rise by about 10% in 2021. “

It is common sense that the price changes brought about by the consumption environment, but the increase of raw materials obviously can’t keep up with the increase of ice cream retail price. Businesses want to sell ice cream more expensive – “high end upgrade” is a good way. Guangming youbei fresh milk ice cream, which is known as “not adding a drop of water”, adds Hangzhou Longjing tea powder made by Japanese low-temperature grinding technology to the ice cream; Zhong Xuegao’s most popular pink diamond ice cream comes from Ecuador’s natural pink cocoa beans, which are said to be comparable to the price of diamonds.

“Whose raw materials are more advanced” is the first card played by new brands. Another card is to start from the face value and jointly do marketing. The public’s expectation of ice cream is not only the taste, but also the “good-looking picture”. This year, May 1, take the miniature version of Yellow Crane Tower, Oriental Pearl, Shenyang the Imperial Palace in front of this statue take pictures, is the most popular travel photography template. Stone lion with chocolate flavor, bronze with Matcha flavor, even terracotta warriors and horses have made a hot search for cultural and creative ice-cream. It’s also a hit with suheshan, a small brand that has been co branded for three years and five years in the national college entrance examination.

In the past three years, Zhong Xuegao has co branded dozens of brands, including xiaoxiandun, wufangzhai, Martell, Luzhou Laojiao, mercury home textile, Rongwei automobile, etc. Everything can be mixed with ice cream. Traditional brands have also learned this trick. The ice cream produced by the marriage of Guangming white rabbit and Gedi van costs 55 yuan. In the freezer of the convenience store, milk tea flavored keaiduo, CO branded with Xicha, costs 16 yuan, and Mengniu Pistachio Ice cream, CO branded with three squirrels, costs 6.9 yuan. There are also all kinds of exotic tastes that arouse your curiosity. According to the data of tmall black box and Ali’s mother, the Gmv of “Mustard flavor” and “Stinky Tofu flavor” ice products will increase by 1368% and 6772% year on year in 2020.

Zhong Xuegao has an internal rule that there are no more than 15 SKUs of products on sale for a long time. The products can be recycled, but they can’t appear on the market at the same time. Lin Sheng, founder of Zhong Xuegao, once revealed the marketing skills: “if there are about 30 kinds of products that are pushed to the market, there are 20 kinds of products that are limited in sales and limited in topic, which will be sold for one day, or seasonal products, which will be sold for one season. They are all short-term products and will not be produced again for a long time.”

First, the high-end concept is developed from the raw material end of the product, and then a large number of promotions are made with the design and appearance value, and then marketing means such as limited sales and seasonal restrictions are used. Is this set of price increase rules familiar, just like the popular Xicha, Naixue and LeLe tea in those years. On the other hand, some traditional ice cream brands, adhering to the traditional distribution mode, and lacking in innovation in product packaging and taste design, are gradually put in the cold.

The question is, do consumers really pay for such a high price? Is wanghong ice cream an IQ tax?

There’s always a day when you’re “out of breath”?

Everyone wants to eat ice cream for different purposes. Some want to relieve the heat, some want to stimulate the taste buds, and some “take her if you love her”… Consumers have different psychological and social needs for ice cream, but from the perspective of frequency, buying ice cream is still low consumption.

At present, China’s annual per capita consumption of ice cream is less than 3 kg, while the annual per capita consumption of rice is about 110 kg, and the annual per capita consumption of soy sauce reaches 6 liters. Low frequency consumption of ice cream only do high single profit, enterprises can have a good life.

Only from the online data, there are high-end ice cream customers. But in the dealer’s eyes, net red after all is “real fire” have to play a question mark.

“At first, it was the northeast big board that was easy to sell. In 2016, it was the good grandma who would be popular. Then it was Lotte. In the next two years, matiel and Zhongjie got up in 1946. This year, it was Zhong Xuegao’s turn. The net red ice cream is like a gust of wind, and it’s gone after blowing. The double yolk ice cream that Aoxue was very popular before was completely silent after the problem was found out. “

Jin Shengjie, a dealer who has been engaged in ice cream wholesale for more than 20 years, told ecommerce online that last summer’s most popular retail store in madiel sold more than 100 boxes. This year, it’s Zhong Xuegao’s turn“ They sell better. Because it’s not only the family (small families store their own goods), but also all kinds of supermarkets and convenience stores that come to pick up the goods. In April, they sold more than 400 cases. ” The reporter learned that the retail price of Zhong Xuegao is 12-18 yuan, the wholesale price from the secondary dealers is 10-12 yuan, and the price up to the next level is about 6-7 yuan – compared with the wholesale price of 50 cents mung bean popsicle, it is a high price of dimension reduction.

But dealers are more willing to wholesale these high-end ice cream. For Jin Shengjie, a box of Zhong Xuegao 20 sticks makes a profit of nearly 50%, and a box can earn 80-100 yuan. For a box of 40 sticks of mung bean popsicles with 50 cents, each box can earn 1-20 cents, and the profit of a box is only 3-4 yuan. In total, a Zhong Xuegao can offset the profit of a box of mung bean popsicles“ That’s why convenience stores don’t buy these cheap ice-cream. The same electricity charge, of course, is to sell more profitable ice-cream. And consumers like it. In the field of making ice cream, it’s very important that the brand is recognized or not. “

In fact, the reporter found that there is a gap between the “brands you want to sell” and “brands you must sell”. In terms of profit, ice cream such as Zhong Xuegao and Zhongjie 1946 are obviously more fragrant. However, in terms of sales volume, compared with local brands such as Wufeng and Youkang, which can sell 400-500 cases a day, the latter’s profit is only 10%, but it can account for 80% of the annual turnover. Obviously, dealers can’t afford to worry about small losses.

Retail price list of Wufeng ice cream

After visiting five ice cream wholesale stores of different sizes, ecommerce online found that the refrigerators in the stores all bear brand marks. “These refrigerators are also supplied by the brand side, so we can not sell foreign brands such as heluxue and Nestle, but we can not sell domestic brands such as Youkang and Wufeng. If the whole freezer is selling other brands, the salesman will come to you for tea next month. ” Mr Kim said.

This is also the situation that new brands have to face – when the brand influence has reached a certain level, they need to find new customer groups, but if the ice cream wants to sink, they have to face the attack of regional brands“ Iron five abundant, you Kang, flowing net red ice cream. How long the life cycle of these Internet celebrities will be, we have to wait and see. ” Jin Shengjie said.

High end and sinking

In the domestic ice-cream market, the industry generally believes that the unit price of less than 2 yuan is the low end, 3-10 yuan belongs to the middle end market, and more than 10 yuan can enter the high-end series. The reason why domestic brands want to be high-end is very simple, because a few yuan ice cream can’t support them.

The retail price of salt water popsicle, white bear ice brick and tricolor cup, which are familiar to the old Shanghai people, has remained at 1 yuan for many years, but the reality is also very cruel. Yimin No.1 food factory, its manufacturer, was purchased by Bright Dairy at a price of 143 million yuan in 2018 due to poor profits. People familiar with the matter said that due to the company’s insufficient production capacity and marketing, the brand gradually fell into the disadvantage in the competition.

Wuyang ice cream is the favorite of Guangdong people. There is a local joke: of the 1000 Cantonese, 999 have eaten Wuyang ice cream, and another is preparing to buy it. However, this old manufacturer was brought into the management of Nestle China in 1999; Hangzhou Youkang, which produces baby head ice cream, fell into the capital chain crisis in 2015 due to its unfavorable land acquisition. It was not until the end of 2019 that it passed the directional reorganization bill and introduced strategic investors that it was rescued from the brink of complete bankruptcy.

We should learn from the past. If we want to live, we need to change. Zhongjie ice cream, Dongbei Daban and matiere are all low-cost ice cream brands coming out of the northeast, and now they are all starting to be high-end. Lin Sheng, founder of Zhong Xuegao, once said in an interview, “in the next 10 years or even longer, for the new generation of Chinese consumers, the products we provide should satisfy the process of” from something to good “(rather than” from nothing “), and the consumption upgrade of ice cream is certain.”

But for new brands, it is difficult for high-end products to enter a broader market. Consumers may buy some “expensive ice-cream” for a taste, but how long this enthusiasm can last is unknown. This is a good proof that none of the five ice cream wholesale stores visited by the reporter is selling 199 yuan high-end ice cream. One boss said bluntly, “it’s too expensive. No one will buy it. So we don’t stock

According to Jin Shengjie, the monthly turnover of retail stores is about 200000-300000, which only accounts for 20%. Another 80% depends on the next level of sales outlets – supermarkets, convenience stores, colleges and universities. Relying on this offline network, a store with only 40 square meters can make 10 million turnover a year. New brands will obviously not let go of such a huge market.

The owners of these small wholesale stores have a rich source of customers

“E-commerce online” believes that the upgrading of ice cream consumption may be reflected in part of the rise in the overall price of ice cream, but it will be a long-term process, and it is difficult to develop the habit of high-end consumption overnight. Before that, new brands still need to cultivate low-end products. This may also be why Zhong Xuegao will launch the sub brand “Li Daju” in 2019. This sub brand focuses on ice-cream products of 6-10 yuan, which are sold online and offline through all channels. In other words, Li Daju is a new brand that Zhong Xuegao can use to cover offline channels and face the transformation of mass consumer goods.

Traditional ice cream brands are anxious to transform, to do high-end products, get higher profits. The problem for them is that they can quickly make new hot money and win the hearts of young people again; The new brands with the rise of the Internet have other troubles. They need to break through the restrictions and meet the local brands. From the current situation of visits, Li Daju is difficult to gain an advantage in the intertwined offline wholesale outlets without the reputation of wanghong ice cream.

In any case, it’s hard to avoid the price increase for the foodies. 5 yuan can buy ice cream may be less and less. The advantage is that consumers will have more choices, and the delicious and good-looking ice cream will continue to speed up to you.

作者:王亚琪;来源:电商在线(ID:dianshangmj),转载已获得授权。
加入社群:Cherry(微信:15240428449);
商务合作:Amy(微信:13701559246)。

F·FBIC 2021



From May 19 to 21, 2021, the 7th f · fbic 2021 global food and beverage Innovation Conference held by foodaily daily food was successfully held in Shanghai Baohua Marriott Hotel. The conference gathered 1653 product decision makers to experience and appreciate 2400 + SKU strictly selected innovative products at home and abroad, listened to and learned 87 theme innovation sharing from 134 experts and teachers from different fields, and witnessed the announcement of the third Isee innovation award on the evening of May 19. The following is in-depth media coverage of the event:

Ma song: all enterprises will die

F · fbic2021 packaging design and consumer experience sub forum

How do Budweiser, Vitasoy and Suntory think about the future of beverage industry?

This is a “human face and animal heart” entrepreneur

F · fbic2021 comes to an end

The third Isee innovation award was announced, and the annual innovation achievements of “new food era” are all here




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