As they try to get an edge in the intensely competitive market for
ice cream products in China, both domestic and foreign ice-cream
companies are turning away from advertising to focus more on
product research and development.
Wall’s, for example, has introduced new products with more variety
at higher prices such as Cornette Super and Paddle Pop Lava while
cutting prices as much as 30 percent on its standard products
Magnum ice cream bar and Paddle Pop. According to a salesperson
with Wall’s in Beijing, this product strategy has left overall
prices unchanged.
In
the face of such tactics, Chinese ice-cream giants are not willing
to be outdone. They are also offering new products this summer at
prices and with packaging and flavor they hope can compete with
their foreign rivals.
The Ili Group of Inner Mongolia in north China, a food processing
conglomerate that enjoys a significant share of the domestic ice
cream market, now offers 180 popular varieties of ice cream
including some newly developed high-end products such as Weixue
that match the quality of the best ice cream offered by Wall’s.
Who will be the final winner in this Sino-foreign ice-cream war?
Economic experts say that China’s huge market for ice cream will go
to the companies that offer the best flavor, best local service and
best prices.
(Market News 06/26/2001)