{"id":3325,"date":"2025-06-20T08:17:09","date_gmt":"2025-06-20T00:17:09","guid":{"rendered":"https:\/\/bccmedianews.com\/?p=3325"},"modified":"2025-06-20T08:17:12","modified_gmt":"2025-06-20T00:17:12","slug":"from-love-her-treat-her-haagen-dazs-to-selling-itself-for-survival-why-did-the-ice-cream-king-of-a-generation-fail-in-china","status":"publish","type":"post","link":"https:\/\/bccmedianews.com\/?p=3325","title":{"rendered":"From \u201cLove Her, Treat Her H\u00e4agen-Dazs\u201d to \u201cSelling Itself\u201d for Survival: Why Did the Ice Cream King of a Generation Fail in China?"},"content":{"rendered":"\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Introduction:<\/strong><br>Once upon a time, holding a cup of H\u00e4agen-Dazs was a symbol of ritual and status for urban white-collar workers and young petite bourgeoisie in China. The slogan \u201cLove Her, Treat Her H\u00e4agen-Dazs\u201d gave this American ice cream brand a \u201cpremium filter\u201d in the Chinese market. However, times have changed. Today, H\u00e4agen-Dazs is facing severe challenges.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Recently, several media outlets reported that General Mills is considering selling its H\u00e4agen-Dazs China operations and has partnered with Morgan Stanley to explore a potential deal. Behind this news lies the harsh reality of H\u00e4agen-Dazs\u2019 double-digit annual declines in foot traffic at its stores across China. Once the king of premium ice cream, why has H\u00e4agen-Dazs \u201cfallen from grace\u201d in China? How can we dissect the deeper reasons behind its cooling presence in the market?<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Once Glorious \u201cPremium Myth,\u201d Crisis Emerges in Recent Years<\/strong><\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">In 1996, H\u00e4agen-Dazs officially entered the Chinese market and quickly captured consumers with its positioning as a \u201cpremium imported ice cream.\u201d In the 1990s, when the average monthly salary was just a few hundred yuan, H\u00e4agen-Dazs priced a single scoop at 25 yuan (approx. USD $3.50), and a fondue set could cost two to three hundred yuan (USD $28\u2013$42), yet it still attracted a large number of consumers in pursuit of a \u201crefined lifestyle.\u201d<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">In its early days in China, H\u00e4agen-Dazs adopted a \u201cluxury logic\u201d pricing strategy\u2014shaping a premium brand tone through high prices, supplemented with refined in-store decor and romantic marketing campaigns (such as \u201cIf you love her, take her to H\u00e4agen-Dazs\u201d), successfully distinguishing itself from ordinary ice cream brands. Around 2010, H\u00e4agen-Dazs\u2019 growth rate in the Chinese market once exceeded 20%, and the number of stores surpassed 200, becoming synonymous with high-end ice cream.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">However, in recent years, the brand\u2019s halo has gradually faded. According to reports, from 2019 to 2023, H\u00e4agen-Dazs saw an average annual decline of about 15% in foot traffic at its China stores, with some locations even experiencing negative growth.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Its high-price strategy once gave it a commanding lead, but now, competitors are everywhere:<\/p>\n\n\n\n<ul style=\"font-size:20px\" class=\"wp-block-list has-open-sans-font-family\">\n<li><strong>International brands:<\/strong> Italian brand Venchi and Japan\u2019s Nissei attract consumers with more diverse flavors and trendier marketing.<\/li>\n\n\n\n<li><strong>Domestic premium brands:<\/strong> Local players like Zhong Xuegao and Xu Jinhuan have risen through Guochao (Chinese-style) branding and online channels, with some products priced even higher than H\u00e4agen-Dazs.<\/li>\n\n\n\n<li><strong>Luxury brand crossovers:<\/strong> Brands like Gucci and Dior have launched co-branded ice creams, further siphoning off premium customers.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Consumers Have Changed: Young People No Longer Pay for \u201cBrand Premium\u201d<\/strong><\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Surveys show that Gen Z consumers have become increasingly immune to the \u201chalo effect\u201d of imported brands and now care more about cost-effectiveness and social attributes. \u201cH\u00e4agen-Dazs\u2019s price (about 40 yuan per scoop, or approx. USD $5.60) far exceeds its actual experience. Young people would rather choose cheaper, internet-famous ice cream for the photos.\u201d<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Moreover, reviews of H\u00e4agen-Dazs on social media have weakened its premium image. On platforms like Xiaohongshu and Douyin, users often complain:<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><br><em>\u201cFor the same price, I\u2019d rather buy two Heytea ice creams,\u201d<br>\u201cTastes like Baxi (a Chinese brand), why is it three times more expensive?\u201d<\/em><\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Experts point out: \u201cH\u00e4agen-Dazs lacks product innovation. For over a decade, its core offerings are still classic scoops and fondue, while competitors are constantly launching new flavors, creative shapes, and co-branded products.\u201d<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Channel Dilemma: High Offline Costs, Weak Online Growth<\/strong><\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><br>H\u00e4agen-Dazs has long relied on offline stores, but high rent and labor costs have squeezed profits. Since 2021, H\u00e4agen-Dazs has gradually shut down many loss-making stores in Beijing, Shanghai, and other cities. It then tried entering supermarkets and online channels, but results were limited.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">Its sales on e-commerce platforms lag far behind local brands like Zhong Xuegao. \u201cIts online marketing lacks buzz, and high cold chain delivery costs make it hard to gain market traction.\u201d<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Behind the Sale Rumors: General Mills\u2019 \u201cLetting Go\u201d Strategy?<\/strong><\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">In April this year, Reuters reported that General Mills is considering selling its H\u00e4agen-Dazs China business, with Morgan Stanley already in contact with several potential buyers. If a sale materializes, the new owner may need to completely reinvent the brand\u2019s positioning and channel strategy, or else it will be difficult to reverse the downward trend.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>Why the decision to sell?<\/strong><\/p>\n\n\n\n<ul style=\"font-size:20px\" class=\"wp-block-list has-open-sans-font-family\">\n<li><strong>Strategic realignment:<\/strong> In recent years, General Mills has focused on core businesses such as pet food and cereals, shedding segments with weak growth.<\/li>\n\n\n\n<li><strong>Intensifying competition in China:<\/strong> The high-end ice cream market has shifted from a blue ocean to a red ocean; H\u00e4agen-Dazs finds it hard to replicate past success.<\/li>\n\n\n\n<li><strong>Capital realization:<\/strong> If the sale goes through, General Mills can free up capital to invest in other areas.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">From \u201cthe Herm\u00e8s of Ice Cream\u201d to \u201cconsidering a sell-off,\u201d H\u00e4agen-Dazs\u2019s journey in China serves as a textbook case of premium brand localization. Its early success stemmed from precise positioning and marketing, while its current predicament lies in its failure to keep pace with the times.<\/p>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\">In the future, regardless of who takes over H\u00e4agen-Dazs, a thorough \u201cbrand revitalization\u201d will be essential to win back the Chinese market. After all, today\u2019s consumers are no longer buying into the mere illusion of \u201cpremium.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"260\" data-attachment-id=\"1067\" data-permalink=\"https:\/\/bccmedianews.com\/?attachment_id=1067\" data-orig-file=\"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?fit=1172%2C476&amp;ssl=1\" data-orig-size=\"1172,476\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"introduce_Qiong Yan\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?fit=640%2C260&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?resize=640%2C260&#038;ssl=1\" alt=\"\" class=\"wp-image-1067\" srcset=\"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?resize=1024%2C416&amp;ssl=1 1024w, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?resize=300%2C122&amp;ssl=1 300w, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?resize=768%2C312&amp;ssl=1 768w, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2024\/10\/introduce_Qiong-Yan.png?w=1172&amp;ssl=1 1172w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<p class=\"has-open-sans-font-family wp-block-paragraph\" style=\"font-size:20px\"><strong>[Disclaimer]<\/strong>: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:Once upon a time, holding a cup of H\u00e4agen- [&hellip;]<\/p>\n","protected":false},"author":256241814,"featured_media":3326,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[132842,132876,132862,132846,132848,132882],"tags":[],"class_list":["post-3325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-economy","category-china-focus","category-corporate-insights","category-global-markets","category-consumer-lifestyle","category-retail-fb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/06\/CD27KNZ4BJGFRPANJCC4HEJ47M-e1750378196889.jpeg?fit=1176%2C616&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pg46U3-RD","jetpack-related-posts":[{"id":2388,"url":"https:\/\/bccmedianews.com\/?p=2388","url_meta":{"origin":3325,"position":0},"title":"Mixue Ice Cream &amp; Tea vs. Starbucks: The Peak of &#8220;Poor Man\u2019s Economy&#8221; or the New King of Freshly Made Beverages?","author":"revieweditor","date":"2025\u5e7403\u670812\u65e5","format":false,"excerpt":"Introduction At the beginning of March 2025, Chine\u2026","rel":"","context":"\u5728\u201cBusiness\u201d\u4e2d","block_context":{"text":"Business","link":"https:\/\/bccmedianews.com\/?cat=132842"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/03\/qc7r-listing-e1741754736744.jpg?fit=1176%2C860&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/03\/qc7r-listing-e1741754736744.jpg?fit=1176%2C860&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/03\/qc7r-listing-e1741754736744.jpg?fit=1176%2C860&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/03\/qc7r-listing-e1741754736744.jpg?fit=1176%2C860&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/bccmedianews.com\/wp-content\/uploads\/2025\/03\/qc7r-listing-e1741754736744.jpg?fit=1176%2C860&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4740,"url":"https:\/\/bccmedianews.com\/?p=4740","url_meta":{"origin":3325,"position":1},"title":"$57 Billion! 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