"The new products targeting young consumers are good attempts to expand the market, and supplement existing products in the white liquor sector well. It is important that white liquor makers should promote responsible drinking among young consumers," said Wang Yancai, director of the China Alcoholic Drinks Association.
Experts said more efforts are needed to make baijiu appealing to young consumers.
Wang Yiyang, a white liquor market expert in central China's Henan province, said research is needed to improve packaging designs and marketing channels. But what matters most is young consumers' preferences for liquor flavors.
"Young consumers do not like products with high alcohol content. They prefer refreshing flavors with low alcohol levels, where pleasant aroma, milder body, smaller pack, and low per-bottle price are key, because within the same budget, they would like to try more varieties," said Wang.
Zhang Shunshui, 29, sales manager with a textile company in Hangzhou, Zhejiang province, said young consumers like him prefer "light and fruity" liquor.
"Quite often I drink alcohol with guests and clients at business banquets. People now prefer drinks with low levels of alcohol. Some fruity alcohols infused with cranberries, blueberries, plums, wax berries and even cherry blossoms are getting increasingly popular, particularly among female guests.
These liquors are regarded great ice-breakers, friendly toward everyone. You can still talk about business and contracts after the banquet without getting totally intoxicated by them," said Zhang.
Marketing experts said liquor-makers, to increase sales, must understand how young consumers get to know about a brand, and what encourages them to buy.
Ready-to-drink cocktail brand Rio must know a thing or two in this context. Its sales increased from 50 million yuan to 1 billion yuan in just three years, said Xiao Zhuqing, a liquor marketing specialist.
The brand appeared in a popular TV drama last summer, thus gaining exposure to hundreds of millions of young consumers.
Thanks to the small-screen presence, a Rio bottle sold every three seconds, according to a research report by Industrial Securities Co Ltd.
Capital market analysts said recovery in fundamentals will help China's liquor makers to improve their financials.
Shares of liquor companies may grow faster than those of many other sectors this year, they said.
A research note from Sealand Securities Co said increasing fixed-income investments and a rising Consumer Price Index will help lift shares of liquor makers, particularly those that have been oversold.
According to Shanghai WIND Information Technology Co, the average share price of 21 A-share liquor makers has grown more than 10 percent since the beginning of February, more than double that of the benchmark index.
