Drive to cut spending bites into gift biz

For industry newcomers, the downturn of the liquor industry means opportunities.

Beverage tycoon Zong Qinghou recently announced a five-year, 5 billion yuan plan to diversify his beverage empire by collaborating with liquor producers in the hometown of the country's most famous liquor brand, Moutai.

His Hangzhou Wahaha Group Co Ltd will work with Jinjiang Liquor Co Ltd in Moutai county, Guizhou province, by integrating local small and medium-sized distillers to develop a new brand.

Zong said: "The liquor business has been greatly affected by policies recently.

"But the culture of drinking liquor is deeply rooted in China, and people's spending on liquor won't decline."

Liu agreed, although she said the industry will remain in recession over the next three years. During that time, it will consolidate, upgrade and eliminate bubbles.

"Middle- and lower-end products will get priority in our investment, while high-end products will be retained for branding purposes," she said.