Innovation pays off for old, honored brands

"They have their own formulas for success… which can create new consumption hot spots to meet the cultural demands of young people," Shang said.

Renowned brands are likely to look to systematic reform, product innovation, packaging design, cooperation with other brands, and livestream promotions to boost their business, experts said.

"They will have renewed vigor after fully tapping their existing brand technology and adapting themselves to the new market environment," Shang said.

Xing Zhihong, chair of Jinghua Tea, which was founded in 1950, said, "Every brand has a legendary or inspiring story and constantly upgraded craftsmanship that has stood the test of time."

In addition to coping with intense market competition, Xing called for laozihao to act quickly to cater to increased calls from members of the public to safeguard their health and protect the environment.

"Many modern-day consumers have a deep love of traditional culture, and they often pay attention to and actively choose domestically-made products," she said.

"Therefore, time-honored brands should firmly seize this opportunity by constantly improving their production processes and quality, enriching their product mix, and using a range of new marketing methods to gain market attention."