According to a report by China Daily on February 21
Heritage enterprises blend tradition, digital innovation and “guochao” to capture a new generation
For decades, China’s “time-honored brands” — known domestically as laozihao — were often viewed as custodians of tradition rather than drivers of growth. In 2026, that perception is changing rapidly.
During this year’s Spring Festival shopping season, legacy food and restaurant brands reported surging demand, fueled by a new formula: cultural heritage + contemporary design + digital commerce.
The revival is not symbolic. It is economic.
According to official data, China’s 1,450 nationally recognized Time-Honored Brands generated more than 2 trillion yuan ($288 billion) in operating revenue in 2024, with profits exceeding 350 billion yuan. Overseas revenue surpassed 50 billion yuan, reflecting growing global reach.
With an average history of 145 years — and more than 60 percent over a century old — these companies span 32 industries across seven major sectors and collectively safeguard over 1,200 items of intangible cultural heritage.
From Nostalgia to New Consumption
The resurgence comes at a pivotal moment. Since 2025, China’s policy focus has emphasized expanding domestic demand and upgrading service quality as pillars of high-quality growth.
Rather than relying solely on nostalgia, heritage brands are repositioning themselves within the country’s evolving consumption landscape:
Integrating digital marketing and e-commerce
Designing culturally resonant yet modern products
Targeting younger demographics, especially Generation Z
Expanding into experiential and “emotional value” consumption
The rise of guochao — a China-chic aesthetic blending tradition with contemporary style — has further reshaped how heritage brands communicate with consumers.
Case Study: Reinventing the Bakery Model
One example is Beijing Daoxiangcun, one of the capital’s most iconic pastry makers.
Rather than merely adding trendy packaging, the company has focused on “deep revitalization,” extending its historical craftsmanship into new product formats.
For the 2026 Year of the Horse, it launched themed gift collections that combine traditional pastry-making techniques with artistic collaborations, including a partnership with renowned artist Han Meilin.
Products such as mousse cakes and creatively designed accessories reinterpret traditional symbolism for health-conscious and design-oriented consumers — demonstrating how heritage assets can be monetized without diluting brand identity.
Restaurants Shift Toward Experience and Home Scenarios
The transformation extends beyond bakeries.
China Quanjude Group, internationally known for its roast duck, is pivoting toward what executives describe as “emotional value consumption.”
Facing intensified competition and shifting dining patterns, the company has adopted a “Catering + Food” dual strategy:
Premium home banquet kits for at-home celebrations
Snack products designed for younger, social-media-driven consumers
Cross-brand integration within its restaurant portfolio
This approach reflects a broader industry shift: traditional dine-in brands are expanding into retail, digital channels and lifestyle products to stabilize revenue and diversify growth.
Policy Tailwinds and Structural Role
According to officials at the Development Research Center of the State Council, heritage brands are increasingly seen as strategic assets in boosting consumption and strengthening cultural confidence.
Government policy now emphasizes building internationally recognizable “Golden Namecards” — domestic brands capable of competing globally while satisfying rising domestic demand for quality and personalization.
However, experts caution that sentiment alone cannot sustain growth. In today’s competitive retail environment, product quality, operational efficiency and innovation remain decisive.
Why This Matters for Investors
China’s consumption story is evolving beyond platform-driven e-commerce growth and luxury imports. Increasingly, growth is being generated by:
Premiumization within mass-market categories
Cultural IP monetization
Digital transformation of traditional enterprises
Domestic substitution with brand upgrading
Time-Honored Brands sit at the intersection of all four.
They offer built-in brand equity, supply chain depth, and cultural legitimacy — assets that can be leveraged in both domestic and international markets.
Bottom Line
China’s heritage brands are no longer relics of the past. They are becoming instruments of domestic demand strategy.
By blending centuries-old craftsmanship with modern branding, digital distribution and experiential consumption models, these enterprises are aligning themselves with China’s broader economic transition toward quality growth.
For global investors and consumer-sector executives, the shift signals something larger:
China’s next wave of consumption growth may come not only from new tech disruptors — but from old masters learning how to reinvent themselves.