In a final, somber chapter for a brand that once defined China’s 'New Consumption' era, the remnants of Chicecream—known locally as Zhong Xue Gao—were liquidated under the gavel in May 2026. A bundle of 508 intangible assets, including 492 trademarks and several design patents, fetched 21.1 million RMB ($2.9 million) at a bankruptcy auction. While the sale price represented a significant premium over the starting bid, it remains a pittance compared to the company’s staggering 782 million RMB in total liabilities.
Founded in 2018 by marketing veteran Lin Sheng, Chicecream was designed to disrupt a stagnant frozen treats market. By positioning itself as the 'Hermès of ice cream,' the brand utilized sophisticated social media campaigns and limited-edition releases to justify price tags as high as 66 RMB ($9) per bar. This strategy initially succeeded, catapulting the company to a peak valuation of 4 billion RMB and making its distinctive architectural-tile shape a ubiquitous status symbol on platforms like Xiaohongshu.
However, the brand’s foundation was built on narrative rather than sustainable product differentiation. The turning point arrived in the summer of 2022 when viral videos showed Chicecream bars remaining solid even under the heat of a blowtorch. While the company insisted its use of thickeners was within safety regulations, the incident shattered the luxury illusion. Consumers were left wondering why they were paying a premium for a product that seemingly defied the laws of nature, leading to a terminal crisis of trust.
In a desperate attempt to pivot, Chicecream launched a budget-friendly line priced at just 3.5 RMB. Rather than saving the company, this move signaled a strategic surrender that alienated its core aspirational audience. In the world of luxury, exclusivity is the primary currency; by offering a mass-market alternative, Chicecream effectively admitted that its high-priced predecessors were overpriced, destroying whatever brand equity remained.
Beyond marketing failures, the collapse was accelerated by aggressive venture capital structures. To fuel its rapid ascent, the founding team had entered into demanding 'valuation adjustment mechanism' (VAM) agreements. When sales began to falter amid China's broader shift toward value-based consumption, these financial trapdoors snapped shut. The loss of control to investors and the freezing of assets left the brand with no room to maneuver as the economic climate cooled.