Source | China Ice Cream

“I've been in the ice cream business for 34 years, and last year I lost over 700,000. From a young man to a middle-aged uncle, from making millions to losing hundreds of thousands, the journey has been full of mixed emotions.”

Li Zhiguo, an ice cream and frozen food distributor from Hebei, entered the cold beverage industry in his twenties. He started as a factory worker, rose to team leader, then managed cold storage, became a distributor, and even launched his own ice cream brand and opened wholesale-retail stores. Every step was a fresh start from scratch.

Today, I had an in-depth interview with Lao Li (as he is affectionately called), hoping to glimpse the development trajectory of the entire cold beverage industry through this ordinary "ice cream person" who has been through thick and thin. I also look forward to sharing real stories from the market, which may not be all rosy, to offer new thoughts and aspirations for fellow ice cream and frozen food professionals.

"Even After Losing Over 700,000, I Still Want to Turn Things Around in Ice Cream"

"I've been making ice cream all my life. Maybe because I've been exposed to many aspects of the trade and stayed long enough, I had some blind confidence and optimism in the early years, which led to a few major setbacks."

Lao Li smiled, as if reminiscing about the past, but also reflecting on his mistakes.

"If you had to pinpoint the biggest reason for these 'major setbacks,' what would it be?"

At my question, Lao Li rubbed his hands and pondered for a moment.

"Overstocking and inventory."

He said just five words, but it reminded me of the dark times of "channel inventory" that the entire Chinese ice cream industry experienced.

"At my peak, besides supplying to retail outlets, I had up to seven ice cream wholesale-retail stores. Back then, I selected products and set prices based on store location and consumer demographics, so about five of those stores had decent revenue."

Having ridden the wave of the cold beverage industry and capitalized on the traffic of ice cream wholesale-retail stores, Lao Li indeed made a fortune with his years of experience and foresight.

"That made me even bolder to go all out and take risks," Lao Li laughed heartily. "At the time, I teamed up with a few friends, rented and bought cold storage, took on more ice cream brands, stocked more goods, and the business grew bigger."

Lao Li told me that the "huge scale and tangled decision-making power" made it difficult to make quick, decisive moves when trouble hit, preventing him from cutting losses early.

In recent years, the once-hot wholesale-retail store track has faced fierce competition and a wave of store closures, leaving many in the industry emotional.

"After more than thirty years, even when it's tough, I still want to keep going and turn things around in ice cream. I don't know if it's right or wrong, maybe it's just unwillingness to give up, but I always feel this industry will get better. We can't just let go, especially those of us who were there from the beginning," Lao Li said, with resilience in his calm eyes.

"I won't give up on making a go of it in the ice cream business," he added, despite the hardships.

"You Have to Be Resourceful and Find Ways to Make Money"

"These past few years (in cold beverages) have been really tough."

Just this one sentence has been repeated countless times by distributors, wholesalers, and store owners in the ice cream and frozen food industry that I've interviewed.

Interestingly, and true to human nature of saying one thing but doing another, while everyone complains about the difficulty, they never stop working.

Across the cold beverage industry, there are countless ice cream and frozen food professionals like Lao Li who are "restless" and always trying new things.

"Ice cream and frozen food people have a certain drive. No matter where they're from, those who survive in this industry are unyielding. 'Farmers in the city,' isn't that what they call us? Haha. Farmers aren't afraid of wind or sun, nor hardship or fatigue; they just want a good harvest from the fields. We're the same."

A wholesale distributor once said this to me.

"It's tough, but in reality, every industry is tough now. We have to work through it and find ways to earn money," a distributor from Henan told me. This year, he's focusing on low-price ice cream products, targeting small shops and snack bars near elementary, middle, and high schools. "Don't underestimate the sales volume at these outlets during the summer peak, especially around school hours. Even with thin margins, it's quite profitable."

Meanwhile, a professional from Heilongjiang said he's going against the grain by focusing on the mid-to-high-end market.

"Because even when the overall environment is bad, there are still a considerable number of consumers who demand quality and choose mid-to-high-end ice cream products. Selecting good products, maintaining good customer relations, and boosting repeat purchases is a viable path."

This idea echoes what an industry insider told me in a previous interview.

"Some people love value-for-money ice cream, just as high-quality ice cream has become an indispensable part of many consumers' lives. Under the Chinese mindset of 'you get what you pay for' and 'expensive things are good except for the price,' high-priced, high-quality ice cream still has a market, with a stable and growing group of repeat buyers. In China's vast market, any category or business model can find its rationale for existence and growth."

A professional from Guangdong said he's focusing on "door-to-door delivery" services, tapping into school and family gathering scenarios.

"If competitors don't offer delivery, I do; if they do, I deliver faster and offer more brands. I aim to have what others don't, and be better at what others have. I don't expect to be a step ahead, but being half a step ahead gives a clear advantage."

A professional from Zhejiang is leveraging popular social platforms like Douyin and Xiaohongshu for customer traffic.

(Photo taken during my field research at Zhao Yiming Snacks, Hao Xiang Lai, and Snack Preferred bulk stores)

"Now snack stores and supermarkets use 'rock-bottom priced ice cream' to attract customers. I try to avoid selling those items because I can't compete on price, so I steer clear. Instead, I plan around the ice cream brands where I have an advantage, deciding which ones to use for traffic and which for profit. I create a lively livestream, shoot videos, and manage private domain operations offline to maintain repeat purchases from regular customers. So far, it's working. Blindly slashing prices across the board is never a good idea; the more you discount without a plan, the faster you'll go out of business."

Whether exploring new price points or creating new scenarios for growth, these examples confirm the title: ice cream people always have that "drive."

"To survive in this industry, first, you must be honest; second, you must be hardworking; third, you must be wise. Speaking of wisdom, here's an example: if it's 38 degrees today, you need to place orders immediately, even at midnight or 2 a.m., because you can't be 100% sure about tomorrow's weather. This industry is FMCG, and cold beverages move even faster, with strong seasonality, requiring multi-dimensional skills," said Li Feng, founder of Hao A Po, in an interview. He noted that the special nature of the cold beverage industry brings inevitable hardship, but the ability to adapt quickly is a key factor in staying in the game long-term.

(Photo of Hao A Po founder Li Feng)

"When Will Ice Cream Rise Again?"

"These past two years, ice cream has been really hard to sell. When will it pick up again?"

A few days ago, this comment from a Guangdong ice cream professional in the article's comment section garnered many likes and resonated with many.

Though it sounds like a complaint, it also reflects the expectations, enthusiasm, and hope that countless ice cream professionals still hold for the industry, even as making money becomes harder.

"The cold beverage industry is like this: a few years ago, those who entered and caught the wave rose quickly because 'when the wind blows, even pigs can fly.' But in the last two years, it's returned to the harsh reality of business. If you can't find your core competitiveness, you can fall just as fast. Having been in the game for a long time, you can weather storms more steadily."

A distributor from Guangxi said that countless struggles have led to the precious process of "removing the false and retaining the true" to find the essence.

In my view, whether it's Lao Li at the beginning of this article or the other professionals mentioned above, their approaches to the industry and business may differ, but they all share one common trait:

They have patience for grassroots market work, a scientific management attitude, and the confidence and determination to do everything to the best of their ability in the cold beverage industry they love and excel in.

Today's exchange may be more down-to-earth and perhaps a bit sentimental, but regardless, I hope that in 2025, as the pain eases, and during this hot peak season, all ice cream and frozen food professionals will continue to shine and thrive in the industry, with full pockets and unwavering passion.