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Time-honored brands trying new ideas

By Zheng Yiran | China Daily | Updated: 2018-04-06 10:57
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A consumer chooses his own customized herbal drink at an 1828 Wanglaoji outlet. [Photo by Li Zhihao/For China Daily]

"People's taste is randomly changing. In the market where competition is so fierce, physical stores with no distinguishing features are doomed to be knocked out," researcher He Liting of Zero Power Intelligence Group, a research institution headquartered in Shenzhen, told China Industrial and Economic News.

Huo Liren, deputy manager of Wanglaoji, said in a media conference that the company opened four physical stores simultaneously to meet consumers' rising consumption demands for herbal teas.

"In 2018, we will continue to explore the market in Guangdong, and we plan to enter East China in the fourth quarter of the year," Huo added.

Other time-honored brands are taking similar steps. Recently, Chinese snack and candy maker Hsu Fu Chi International Ltd opened its exclusive offline shop in Dongguan, Guangdong province.

The traditional pineapple cake maker is trying its hand at what's called "experiential consumption", or consumption driven by the desire for memorable experiences, by offering hand-made pastries.

The well-decorated shop, opened in a shopping mall in Dongguan, offers handmade pineapple cakes in a variety of flavors, including original taste, Japanese-style matcha and cranberry. It provides both eat-in and take-away services, and all the pineapple cakes it sells are beautifully packaged.

Zhao Yue, an analyst at Beijing-based market research firm Analysys, said "against the backdrop of 'new retail', more and more conventional enterprises are attempting to open offline experience stores, where they can have the closest encounter with the consumers, bringing brand values to them."

"However, the difficulties lie in how to cater to consumers' personalized and diversified consumption demands in the new era. They need to figure out more crossover marketing strategies, based on the brands' own advantages and conditions," Zhao said.

At present, there are 1,128 time-honored brands registered at the Ministry of Commerce, with the brands enjoying an average history of 160 years. Among them, more than 60 percent are in the catering and medicine sector.

Last year, the MOC, together with 15 government authorities, jointly issued a guideline to protect these time-honored brands, by promoting online and offline integration, calling for stronger intellectual property protection and offering additional favorable governmental policies.

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