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Dec. 29 (NBD) -- Luzhou Laojiao Co., Ltd, one of the oldest distillers in China, announced a joint venture co-invested by one of its subsidiaries and Tongdaodashu, a Shenzhen-based pan-entertainment cultural platform centering on the 12 zodiac signs, in a bid to target young consumers.

The joint venture has a registered capital of 5 million yuan (728,523.1 U.S. dollars), with Luzhou Laojiao's subsidiary contributing 3.5 million yuan (509,966.2 U.S. dollars) and taking a 70 percent stake in the joint venture. With 1.5-million-yuan (218,556.9-U.S. dollar) contribution, Tongdaodashu will hold the remaining 30 percent stake in the joint venture.

As a matter of fact, how to attract the young generation has been a much-talked topic in the liquor industry for a long time. The crossover partnership between Luzhou Laojiao and Tongdaodashu is seen as an important step to approach young consumers with fashionable products.

Prior to the tie-up, Luzhou Laojiao, together with Tongdaodashu, launched a new constellation-themed product series this September.

Tongdaodashu, known for its constellation-related cartoons, now boasts a combined 35 million followers on various platforms.

Wan Xinggui, a baijiu (Chinese spirit) expert, said to NBD that Luzhou Laojiao's crossover marketing through cooperation with Tongdaodashu, an influential IP, is a new attempt to win the hearts of young people, but warned that its further development relies on the product itself, the marketing method and mechanism as well as whether the product is able to solve the pain point for consumers and to reach potential consumer groups.

It's noted that this is not the first move of the baijiu maker to expand businesses through employing Internet and big data innovation.

In early 2017, Luzhou Laojiao launched "Taohuazui", a fruit wine which was literally translated into "peach blossom tipsy", catering to the audience of the hit TV drama, To the Sky Kingdom.

Moreover, the distiller's perfume was released in August of 2017 and hit the social network as a heated topic early this year. The peach blossom perfume was sold at 139 yuan (20.3 U.S. dollars) per bottle (30ml), but the price rocketed to as high as 999 yuan (145.6 U.S. dollars) amid speculation of scalpers.

Another baijiu expert Zhao Yixiang told NBD that baijiu makers surely need to follow the trend of approaching young people, but noted that in the future, traditional liquor will remain the mainstream with fashionable liquor for young people as an important category.

Wan held that it's important to instill healthy liquor consumption and healthy drinking ideas into consumers' minds in baijiu sales and marketing and to promote a healthy development of the baijiu industry in a rational way.

Email: gaohan@nbd.com.cn