For many people, the most famous shop in Liulichang is Rongbaozhai, which was opened in 1894. Rongbaozhai serves as a bridge between collectors, and painters and calligraphers. It has collected many precious masterpieces from famous artists throughout China's history.

The shop has also attracted well-known artists including the painters Qi Baishi, Zhang Daqian and Wu Changshuo and the writer Lu Xun. Late Premier Zhou Enlai was also a frequent visitor.

Rongbaozhai is famous for the technique of woodblock color printing for reproducing ancient paintings. This technique, invented in China, requires very specialized skills. When reproducing a 4-meter-long masterpiece by Gu Hongzhong, painted in the Five Dynasties period (907-960), the staff of Rongbaozhai first drew 1,667 sample pictures and then carved 1,667 wooden boards. It took them eight years to reproduce more than 30 copies of the masterpiece, which can hardly be distinguished from the original.

In May 2005, the technique of woodblock color painting was listed in the first group of national intangible cultural heritage items with the approval of the State Council.