Brands giving modern flavor to their long-trusted products

There are few better ways of unraveling some of the mysteries behind Chinese culture than by looking into the history of the country's time-honored brands.

You can get a glimpse into the traditional production of fermented bean curd by visiting the 340-year-old Wangzhihe science museum in Beijing. If the history of Chinese grape wine attracts your interest, the old Dragon Seal winery in Beijing is the place to go, and soon anyone wanting to find out about Chinese sauce and pickles will be able to do just that at the museum of Liubiju, a pickle maker that is more than 400 years old, also in Beijing.

As traditional brands endeavor to stay true to their traditions but at the same time try to keep abreast of modern developments, they are also putting a great deal of effort into educating customers about their culture and heritage.

"Traditional culture, a way of life and nostalgia are the essence of time-honored brands," says Yin Jie, a member of a committee of experts charged with revitalizing traditional products.

Such brands will be more recognizable in the marketplace if their owners adopt certain strategies and are willing to innovate, he says.

Many that have done so are thriving, he says. For example, pastry maker Daoxiangcun - with a history going back 244 years - has added more than 10 flavors to its old-fashioned moon cake collection.

Sugar alcohol has been added for the elderly and flower and fruit have been ground together for the young. Sugar content in certain cakes has been generally reduced by 7 percent, which appeals particularly to the health-conscious.

"Chinese shoppers are gradually turning to traditional Chinese pastries that have better ingredients and that use a better production process," says Zhou Guangjun, chairman of the Daoxiangcun board.

"We have adjusted formulas in a timely way and put new products on the market to coincide with the trend toward healthier eating."

The Juancheng Pixian Thick Broad-Bean Sauce company has also recently upgraded its cooking sauce recipe for sale in small packets for instant use.

"We want those who don't cook to be able to enjoy our products, for example when they are on an aircraft," says Wu Jialin, the company's e-commerce manager.

The household name Yunnan Baiyao has applied its blood-staunching ingredients to adhesive bandages and toothpaste. The latter has become its star product since coming on the market 13 years ago.

There were more than 10,000 time-honored brands when New China was founded in 1949. They were in areas such as catering, retail, food, pharmaceutical, brewing and public services.

However, many struggled to survive and most are now nothing but memories. Today only about 1,100 time-honored brands are accredited by the Ministry of Commerce, and 156 of them are owned by 71 listed companies.

Most have foundered over the years and less than a third could be said to have prospered. The successes include Daoxiangcun, the traditional Chinese medicine brand Tongrentang and the restaurant chain Quanjude.

"Time-honored brands excel in their quality but they can easily be overlooked if they fail to make their voices heard in the highly competitive modern marketplace," Yin says.

Recently, government authorities have initiated a campaign to help more time-honored brands make their presence be felt.

Sixteen government authorities, including the Ministry of Commerce and the National Development and Reform Commission, jointly issued guidelines on how Chinese time-honored brands can be given a fillip through reform and innovation.

Government measures have been adopted to support the brands' heritage, innovation in their traditional techniques, protection of their original locations and capital investment.

Because many contemporary Chinese products have yet to establish brand credentials, time-honored brands are a better choice for China as it builds its marketing image worldwide, Yin says.

Fund managers, among them Tong'an Investment, are among those aware of the rich pickings on offer and the Beijing firm has formed a partnership with Guangyuyuan, a 470-year-old medicine brand.

"Guangyuyuan has a long history and we trust its products," says Li Yuwei, an assistant investment consultant with Tong'an.

The Wuhan Optical Valley Venture Capital Fund Management Co sees potential in Wanmizhai, another old traditional Chinese medicine brand, and says it has invested 4.5 million yuan ($650,000; 610,350 euros; ￡516,250) in it.

"It has a great heritage and is widely recognized publicly," says Chen Jianwei, the fund's vice-president.

Wanmizhai's valuable assets, such as a license to produce multiple medicines and access to hospitals, are particularly appealing, Chen says.

Government officials have declared 2017 to be a year of investment for time-honored brands. Roadshows will be staged at home and abroad and international designers will be recruited to give the brands a face-lift.

The goal is to develop 800-1,000 well-known Chinese brands in a decade, says Liu Pingjun, chairman of the China Council for Brand Development.

Liu Yixi contributed to this story.

yangfeiyue@chinadaily.com.cn

(China Daily European Weekly 04/21/2017 page16)