Consumption Upgrade in China: Time-honored Chinese brands seek cross-industry collaboration

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As Chinese consumer tastes change, cross-industry collaboration may be the next big trend. The latest example: White Rabbit candy has teamed up with cosmetics firm Maxam to launch a candy-flavored lip balm. So, will the strategy work for Chinese companies, especially the well-known, time-honored brands? CGTN's Wang Mengzhen finds out.

Gone in seconds.

Recently, a classic candy-inspired lip balm went on a trial sale on Tmall, Alibaba's largest e-commerce platform. The lip balm is jointly made by longtime skincare brand Maxam and food manufacturer Guanshengyuan.

WANG MENGZHEN SHANGHAI "The White rabbit candy, a popular snack in our childhood, makes a comeback in a chic manner by turning into a lip balm. The retro design and the milky smell is still here."

Some have joked on social media that they might end up eating the lip balm.

Shanghai Jahwa, Maxam's parent company, says the two brands have taken safety issues very seriously.

YU WEI, CHIEF MARKETING OFFICER SHANGHAI JAHWA UNITED "Together with food scientists, we decided to use food-grade formula with milk essence from the White rabbit candy. Meanwhile, we don't want it to be too sweet since it's a skincare product."

In June, its flagship product Liushen Florida Water, a widely-used mosquito repellent, collaborated with Chinese alcopop brand Rio to produce a special-flavor cocktail.

YU WEI, CHIEF MARKETING OFFICER SHANGHAI JAHWA UNITED "We would like consumers to feel surprised, and it depends on whether the two brands could really fit with each other."

And E-commerce sites like T-mall provide just the platform these traditional brands need to connect with a more fashion-forward audience.

LIU BO, MANAGER BUSINESS DEPT, TMALL "To support these traditional Chinese brands, Tmall has set up a special team. According to our figures, each brand could gain about 90% of its new customers through launching cross-industry products on our platform."

While many consumers are willing to try these novel products out of curiosity, whether or not they'll buy them again is still unknown.

"In the long run, I will consider a second purchase if the product really works and its price is reasonable."

"The image of these old brands is deeply rooted in my mind. So if they are stepping so far outside their element, I won't risk trying."

So, how could these old Chinese brands keep up the consumer demand?

LAO GUOLING, ASSOCIATE PROFESSOR SHANGHAI UNIVERSITY OF FINANCE & ECONOMICS "The survival of these old brands relies on the quality and reputation of their products over the years. So nowadays, apart from digital thinking, these traditional brands have to combine innovative packaging with good quality to make a perfect match."

Shanghai is leading the way as local authorities have launched a three-year action plan to revive 50 old Shanghai brands and further boost the city's consumption. WMZ, CGTN, SHANGHAI.