Herbal tea maker partners with Youku to tap younger segment

Guangzhou Wang Lao Ji Great Health Industry Corp, affiliated to Chinese pharmaceutical maker Guangzhou Pharmaceutical Group, announced in Beijing on July 17 that it has partnered with video-streaming platform Youku to sponsor the latter's new singing competition show "Double Voice", in a bid to attract more young customers.

Wanglaoji herbal tea, the company's signature beverage product that originates from traditional Chinese medicine "liangcha", generated more than 20 billion yuan ($2.98 billion) in sales last year.

Earlier this month, the company invested 800 million yuan to establish a new manufacturing site and health research center in Lanzhou, Gansu province, to expand its production capacity.

"Young generation is increasingly aware of the importance of health, and the company also pays attention to the needs of young customers," said Lin Yuyi, marketing director.

Through sponsoring the program, which he believes will be popular among young people, the company hopes to establish a good image among young customers, Lin said.

The company will sell herbal tea in cans specially tailored for the program, among other measures, such as appointing young celebrities Zhou Dongyu and Liu Haoran as its image ambassadors, to increase the brand's appeal to young consumers.

The company has launched a series of new products in recent years, such as sugar-free herbal tea, and bottled herbal tea, targeting young customers.