Becoming Rich with Daily Scavenging APP-Chapter 523: Ice Cream War

"Once Zhong Xuegao establishes its high-end brand image, people will accept its high pricing and allow it to earn high profits.

Actually, it’s not just Zhong Xuegao doing this. Even examples like Meng Niu are continuously launching new ice cream flavors.

These ice creams have varied designs, but they all have one thing in common, which is being expensive. In other words, whoever can capture the high-end ice cream market in the future can become the next Haagen-Dazs and obtain high profits."

The expert explained well, and Chen Yiyang was quite moved by it.

However, after sending these experts away, Chen Yiyang pondered.

Wait a second.

Haagen-Dazs can make money indeed because their ice cream is priced expensively.

But there are historical reasons for this. Because earlier, there wasn’t an ice cream consumption concept in most domestic consumers’ minds, and only young people and wealthy ones were willing to buy and eat.

In that case, selling at high prices naturally could make money.

But now the domestic ice cream market is rapidly growing.

It’s because the large young generation is becoming accustomed to consuming ice cream.

High volume and low profit can be achieved.

These experts think it’s not feasible simply because their thoughts are outdated.

Chen Yiyang believes that in this huge domestic market, making products that cater to the mass consumers is the right approach.

So he looked for data again and had someone conduct some research.

The conclusion was very optimistic.

Yiming Ice Cream Factory earns only a few hundred thousand a year because it’s a regional factory, only supplying Lin’an City and nearby areas.

If they can update their technology and add advanced equipment to supply ice cream nationwide, then annual profits might be in the billions.

Although it’s still not much.

But Chen Yiyang thought of something else.

He called over Zhang Sen, who is in charge of Flash Sale, and Jiang City, who is in charge of Kuxing Coffee.

"Kuxing needs to expand its logistics and supply systems to lower costs.

Currently, our Flash Sale is also expanding its logistics system, so the logistics used by Kuxing and Flash Sale can actually be unified. There’s no problem with that."

"No problem." Jiang City and Zhang Sen nodded together.

Doing this could save both companies a lot of costs.

Because Flash Sale mainly handles short-distance city deliveries, it can handle city deliveries, while long-distance deliveries outside the city can be managed by Kuxing’s self-built supply system.

"I plan to acquire an ice cream factory. This factory shares some raw materials with Kuxing Coffee, so it’s completely feasible to let suppliers supply both, reducing supply costs."

"That’s also not a problem." Most of the raw materials used in Kuxing Coffee’s current coffee, milk tea, and milk coffee are actually the same ones used for ice cream, and sometimes even the flavors can be identical.

By using one supplier, one can completely avoid the market demand changes caused by seasonal reasons for ice cream.

If you negotiate with suppliers individually, the fluctuations appear large in their eyes.

But when these fluctuations are mixed into the massive raw material demand of Kuxing, they become negligible.

"So, I feel we can do some coordination.

Form coordination between the factories, Kuxing, and Flash Sale. I plan to purchase some food factories. These factories can rely on Flash Sale and Kuxing’s transport chains to negotiate transportation costs, delivering goods at low prices to various cities, then utilize large-scale distribution to engage in price wars with other products.

For example, if a regular product’s logistics cost for other manufacturers is five cents, because our three companies are united, calculating costs together, the cost per product might be just two cents."

These ideas of Chen Yiyang are inspired by Mishu Ice City.

Why is Mishu Ice City so cheap? It’s because they have done well in logistics and supply.

The individual brand sales of Kuxing Coffee cannot reach Mishu’s scale, so costs, regardless, are higher than Mishu’s.

But if Kuxing, the ice cream factory, and Flash Sale work together, then the supply and logistics costs can be lower than Mishu’s.

This method of saving costs through supply chain optimization and internal resource integration is something other brands cannot emulate.

Just like the low-end product of milk tea, only Mishu can achieve such a low price.

Once this coordination forms, then all services and costs of Chen Yiyang’s snack factories, food factories, ice cream factories, Flash Sale, and Kuxing Coffee can be the lowest in the industry.

They can engage in price wars without lowering quality.

Utilize their advantages to crush opponents.

Ultimately, not only can they sustain Kuxing and a number of factories, but they can also win the Flash Sale war.

Chen Yiyang proceeded to act on this plan.

First, he had someone negotiate with Yiming and straightforwardly acquired Yiming Food Factory.

Then he had someone contact other snack factories to see if he could purchase a few of them.

Of course, it’s not just a matter of buying the ice cream factory and then being done. The brand needs to be revived, and they must first achieve nationwide distribution to utilize Flash Sale and Kuxing’s logistics and supply costs.

For this, Chen Yiyang brought over Lin Tao, the second-in-command at Kuxing, specifically to help him with the promotion of Yiming Ice Cream.

"Currently, Yiming Ice Cream is preparing to launch five different flavors, including coffee and milk coffee flavors.

These ice creams use Kuxing’s raw materials, so the cost is very low, with the raw material cost of an ice cream being about eight cents, and we’re planning to sell it for one and a half each.

Excluding logistics costs and distributor profits, each ice cream can earn about two cents."

"Is it selling well at the moment?" Chen Yiyang asked.

"It’s a bit hard to sell." Lin Tao said, "Offline, we don’t have many distributor connections, so offline freezer promotions are no match for cases like Meng Niu.

Online, currently what’s popular are high-priced ice creams like Zhong Xuegao, and we’re completely lacking fame."

"The lack of fame is because there’s no gimmick." Chen Yiyang is now quite knowledgeable and skilled in online marketing.

"Nowadays brand promotion is not like before, where you just find a celebrity to advertise. We need a gimmick that can ignite a nationwide hot topic."

"I really can’t think of anything." Lin Tao said honestly.

"If you spend more time online, you’d know the quickest way for small stars to gain fame is by stirring something with big stars. We need to stir the pot too."

"Stir with whom?" Lin Tao asked.

"Zhong Xuegao." Chen Yiyang said. "Let Yiming change all their ice cream packaging to resemble Zhong Xuegao’s style. But our product price remains unchanged."

"What kind of stirring is that?" Lin Tao didn’t quite get it.

Lin Tao is on the product side, so asking him about marketing is indeed a bit challenging.

But the advantage of having many businesses under the umbrella is that Chen Yiyang has all sorts of talents at his disposal.