Once celebrated as a premium ice cream brand and dubbed the “Hermès of ice cream,” Zhongxuegao is now struggling to survive as its market hype fades and financial troubles mount.
Founded in 2018, Zhongxuegao quickly gained fame by marketing itself as a luxury alternative to traditional frozen treats. Its single ice cream bars were priced between 20 to 70 yuan, with limited editions exceeding 100 yuan, attracting affluent urban consumers eager for high-quality, stylish products. The brand’s “Ecuador Pink Diamond” popsicle became a sensation, selling over 20,000 units in 15 hours during the 2018 “Double 11” shopping festival, and the company reached 100 million yuan in revenue within just 16 months.
Zhongxuegao’s rapid rise was fueled by smart social media campaigns, influencer partnerships, and a wave of national pride for “guochao” (Chinese chic), with flavors inspired by traditional Chinese ingredients like yellow rice wine and oolong tea.
However, by summer 2022, the brand’s high prices began to draw criticism, and accusations of exaggerated marketing surfaced. A viral video showing Zhongxuegao ice cream resisting melting in hot weather raised food safety concerns. Regulatory bodies also fined the company for false advertising related to ingredient sourcing claims.
Financially strained, Zhongxuegao’s subsidiary was placed under bankruptcy review in June 2025 after defaulting on debt payments. Assets have been auctioned off, and founder Lin Sheng faces restrictions and frozen assets due to his inability to resolve creditor claims. Staff layoffs and delayed payments have followed, signaling a severe crisis.
Zhongxuegao’s troubles highlight a larger shift in Chinese consumer preferences. With growing competition from affordable brands like Mixue and emerging players such as Ye Gelato, customers increasingly prioritize affordability and value over luxury branding. Even Moutai, a famed Chinese liquor brand that ventured into ice cream, has scaled back baijiu-flavored offerings amid cooling hype.
Despite its challenges, China’s ice cream market remains the world’s largest and is projected to exceed 220 billion yuan by 2025, growing to 250 billion yuan by 2030. Premium ice creams priced above 20 yuan now represent 25% of the market, up from 15%, but brands like Zhongxuegao show that sustainable success requires balancing innovation, trust, and consumer expectations.
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