Old brands capitalizing on China-chic trend

BEIJING/WASHINGTON — While ice cream in various flavors is available at grocery stores in Beijing, a host of young people still feel compelled to wait in a long line in the blazing sun for something special.

Priced at 9 yuan ($1.30) per cone, the tea-flavored ice cream is a superstar product of Wuyutai Tea, a company founded in 1887.During the Dragon Boat Festival holiday last month, a staggering 4,000 cones were sold each day at a single outlet in downtown Beijing.

Meanwhile, for numerous coffee lovers, the "sauce-flavored latte "made by domestic coffee brand Luckin is an absolute must-try. This novelty is one of Luckin's bestselling products, made all the more enchanting by a key ingredient: alcohol from China's premium liquor maker Kweichow Moutai.

Wuyutai Tea and Kweichow Moutai are among China's 1,455"time-honored brands", which are well-known throughout the country and are officially recognized by the Ministry of Commerce. With an average age of nearly 140 years, these legacy brands either serve as a reminder of people's childhoods or relate to festival traditions and specific fond memories.

Faced with cut-throat competition from both domestic and foreign companies absent in the past, many of the long-established businesses are proactively adapting to the changing landscape and flourishing by tapping into the current consumer trend of China-chic products, which are designed with traditional cultural elements.

Growing popularity

"Many of the long-established brands, previously known only by name, have become more relevant as part of daily life," said Huang Qingmiao, a young consumer who has learned more about China's legacy brands from popular video-sharing platform Douyin, the Chinese version of TikTok, over the past year.

Official data shows that last year, the number of Douyin users buying vintage brands rose 38 percent year-on-year, while the number of older renowned businesses generating revenue on Douyin soared 89 percent. "Using the same things as our ancestors did over 100 years ago gives me a strong feeling of resonance," Huang said.

On e-commerce platform Meituan, the long-established businesses enjoyed a 25.6 percent increase in orders during a one-year span ending on May 26 this year.

More than 90 percent of surveyed consumers said they visited vintage catering establishments last year, according to data analysis provider iiMedia Research.

Many enterprises have struck gold during the China-chic boom. Jewelry company Lao Feng Xiang, for instance, saw its profits jump 31.41 percent to nearly 4 billion yuan last year. Established in 1848, the jewelry maker now operates over 4,000 stores worldwide, including outlets in New York, Sydney and Vancouver.

As traditional culture enjoys a revival in the consumer market, the Chinese government is looking to tap into trending China-chic products under vintage brands.

In the 2024 Government Work Report, China pledged to make efforts to boost the consumption of domestic brands with Chinese design elements, a move that is expected to offer a fresh catalyst for the development of legacy brands.

Appealing to the young

During a visit to China in April, US Treasury Secretary Janet Yellen dined at Cantonese restaurant Taotaoju, and the delicacies she ate there sparked an immediate interest among the public.

However, few people know that Taotaoju, which is also an officially certified time-honored brand dating back to 1880, once suffered setbacks. Like other traditional restaurants serving Beijing roast duck such as Bianyifang and Quanjude, Taotaoju and other vintage dining establishments have felt pressure from a raft of newcomers that are offering a range of dishes, from high-end choices to budget-friendly options.

What's more, engaging younger people continues to be a significant challenge, so seniors remain the primary consumer group for these products, research has found.

To hone its competitiveness, Taotaoju has incorporated private capital and successfully implemented mixed-ownership reform. It regularly introduces new culinary creations every three to four months and periodically revamps its restaurant decor. Today, approximately 70 percent of its customers are under age 35.

In addition, the restaurant chain has expanded its presence online. Its sales on e-commerce platforms posted an average annual growth of more than 40 percent over the past seven years.

Besides creations like the sought-after ice cream that mainly appeals to young people, Wuyutai Tea has also leveraged the power of technology to overhaul production, with its annual sales surging from hundreds of kilograms to over 2,000 metric tons.

"Traditional brands used to rely on experience, but in the future, we must depend on technology to ensure both quality and quantity," said its chairman, Zhao Shuxin.

Expanding global reach

In the US state of Virginia, near Washington DC, the proprietor of a Chinese restaurant surnamed Liu has noticed an increasing number of American diners ordering a type of Chinese herbal tea made by Wanglaoji, a Chinese legacy brand.

"Some of my customers had their first taste of the beverage. They said it was refreshingly sweet, tasty and an ideal choice to beat the summer heat," he told Xinhua.

Last year, Wanglaoji unveiled its brand name WALOVI for the international market amid efforts to expand its global footprint. The company also aims to build 56 museums globally to promote the culture of Chinese herbal tea.

Sales of the beverage have been growing significantly in North America, particularly in major retail chains such as Costco and HMart, as well as on e-commerce platforms such as Amazon, Yamibuy and Weee!.

Meanwhile, zongzi (sticky rice dumplings), a traditional Chinese delicacy typically consumed during the Dragon Boat Festival, has also gained popularity among foreigners. Wufangzhai, a well-established zongzi brand in Jiaxing, Zhejiang province, that dates back to 1921, has sold the snack in more than 30 flavors to overseas markets this year. Zongzi exports from Jiaxing increased 12.36 percent from January to May, according to customs data.

Phoenix, a long-standing bicycle manufacturer in China, has secured a bigger footing in the global market with its popular battery-powered e-bikes. In the first four months of this year, the sales of Phoenix e-bikes in Germany and Canada grew more than 15 percent.

Chen Lifen, a researcher at the Development Research Center of China's State Council, said it is a good thing that an increasing number of time-honored brands have expanded their global reach.

Xinhua