Shanghai Snow Cream to exit market after parent's bankruptcy

The well-known cosmetic brand Shanghai Snow Cream is set to shut up shop after its parent company completed its liquidation process.

Shanghai Meilan Cosmetics Co Ltd was declared bankrupt by the Shanghai Pudong New Area People's Court recently, with its disposable asset reported at 95,800 yuan ($14,197) versus total debts of 19.42 million yuan, as reported by the 21st Century Business Herald.

Formerly trading as Shanghai Meilan Cosmetics Factory, founded in 1984, it was one of Shanghai's first batch of enterprises licensed for producing daily chemical products.

Shanghai Snow Cream was launched in 1989 as a cosmetic brand tailor made for the Chinese market and soon became a nationwide sensation for its tin packaging and rich fragrance.

Entering the 21st century, the company faced challenges including a shrinking market, evolving consumer demands, and a younger generation of consumers. It responded with a bold move by redefining snow cream as a city cultural tourism souvenir, featuring traditional Chinese-style packaging. The strategy helped expand its retail network to more than 670 outlets at its peak.

The turning point came in 2021, when Shanghai Meilan was acquired by Shenzhen Capstone Industrial Co Ltd, a listed company later delisted in 2023 after becoming embroiled in legal controversies, and capital drained away.