Innovative Changes: Chinese white liquor company aims to re-connect with the young consumers

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Chinese white liquor, known as Baijiu, is one of the world's most consumed liquors. But in recent years, the Baijiu industry has faced several hurdles, prompting producers to make use of innovative techniques. CGTN's Liu Yang visited one production facility in Chongqing, to see how they're looking to win back customers.

Baijiu, the Chinese white liquor that is well known to facilitate business in China. It's also a must-have when gathering with friends and family. More often than not, people drinking the liquor take it all down in one gulp - with zero hesitation. China has been producing Baijiu for more than 5-thousand years. Hundreds of brands have tried to leave their mark, including Jiang Xiao Bai.

Here is the most mysterious place in brewing the white liquor.

FU PENG, DIRECTOR OF INT'L BUSINESS DEPT. JIANGXIAOBAI "One of the great potential dangers which is happening in the liquor industry in China is that we are losing many young consumers because of the taste of the Chinese traditional white liquor."

Smooth, light and pure, innovated in both flavor and marketing creates a fashionable liquor brand. Like other white liquor brands in China, innovation is the only way to win the market. According to data released by Nielsen, in 2016 liquor sales in stores and supermarkets reached 4 percent of sales growth in China. Among them, consumers aged between 26-35 spent most on liquor.

FU PENG, DIRECTOR OF INT'L BUSINESS DEPT. JIANGXIAOBAI "Innovation is the biggest challenge for us. Other issues such as the business environment, limitations on overseas business, and regulatory hurdles, are not as important when compared to fostering a culture around the product."

As consumption becomes the main driver of China's economy, especially when the younger generation enters a so-called spending age, innovation remains the key.

LIU YANG CHONGQING "In the emerging liquor market, three factors are driving growth - product innovation, precision marketing and channel expansion. The white liquor industry is an example of using innovation to open up a fresh way of developing business. Liu Yang CGTN Chongqing."