Chinese media are recalling the biography of Zong Qinghou, the founder of Wahaha Group
Source: The DairyNews
An interesting material was presented by finance-sina-cn. DairyNews.Today translated excerpts for our readers.
Like many older-generation businessmen from Zhejiang province, Zong Qinghou's life was shaped by the times. Starting from scratch with sharp business acumen and extraordinary courage, his personal experience and a series of decisions continue to deeply influence the direction of Wahaha Group.
Until his death, Zong Qinghou remained at the helm of the group, and his life was closely tied to Wahaha. At the age of 42, he founded Wahaha and step by step turned it into an empire of food and beverages. He reached the pinnacle of the industry, experiencing turning points, challenges, and contradictions. Zong Qinghou felt that individual personalities are ultimately insignificant, and he would be satisfied if he could achieve something in a greater era.
Yang Yixin, the director of the Zhejiang Merchants Museum, told an Associated Press reporter on the noon of the 25th that the focused and pragmatic entrepreneurial spirit of Chairman Zong Qinghou, his hardworking work style, and unique management style are typical of Chinese entrepreneurs and traders in Zhejiang province: "Zong Qinghou is a model of Chinese civilian entrepreneurship. His success is the result of the right time, the right place, and the right people - the outcome of the hard work of all the people in Zhejiang province, a hot spot for reform and openness."
Yang Yixin recalled that in 2015, when Zong Qinghou gave a lecture at the Zhejiang New Generation Entrepreneurs Association in the Zhejiang Trade Museum, he said, "If I don't go on a business trip, I'll come." He would be in the office at 6:30 in the morning and leave at 11:30 at night. This means he worked 17 hours a day! In that year, he was 72 years old, and he did this every day.
In 2015, when Zong Qinghou turned 70, Wahaha's total profit and taxes exceeded 100 billion. At the National Food and Wine Fair in Chengdu, he said, "I will continue to work for another 20 years."
Starting from scratch, 160 Cintai Street, Hangzhou, a quiet courtyard amidst the hustle and bustle, houses the 6-story gray building that has been the headquarters of Wahaha Group for 36 years. It's a business story familiar to many: in 1987, 42-year-old Zong Qinghou invested 140,000 yuan to sign a contract with the sales department of a school enterprise in the Shancheng district of Hangzhou, which had been in losses for many years. He began his entrepreneurial journey by selling fruit ice cream. In 1989, Zong Qinghou founded Hangzhou Wahaha Nutritional Food Factory and became its director.
In 1990, the production volume of Wahaha Group, which was only three years old, exceeded 100 million yuan, with over 60 million yuan in bank deposits. With 80 million yuan, he decisively acquired the Hangzhou Canning Factory, a key national canned goods production enterprise with over 60,000 square meters of factory buildings and more than 2,000 employees, but was already insolvent, and founded Hangzhou Wahaha Group Company.
Starting with the instant success of Wahaha Nutritional Solution, Zong Qinghou subsequently introduced Wahaha purified water in 1996 and then launched a series of well-known products such as Wahaha AD Calcium Milk, Very Coke, Nutrition Express, Shuangwaiwai, Iced Black Tea, Babao, and more. Products created by China's largest food and beverage processing enterprise alone allowed Wahaha to become a leader in the domestic beverage market.
One of Zong Qinghou's trump cards in building his business empire is the creation of a unique joint sales model that connects more than 3,000 first-level dealers and 30,000-40,000 second-level dealers to Wahaha. This extreme "closed sales" structure allows the distribution network to maintain a very stable pricing system. Combined with Zong Qinghou's strict control over expenses and distribution systems, this ensures that dealers make money, thus supporting a loyal team of dealers.
In 2007, a notorious scandal occurred. Danone invested 4 billion dollars and sought to acquire Wahaha through a joint venture. Zong Qinghou refused, and both parties turned to the courts. In the end, the Wahaha trademark was returned to Wahaha, and Zong Qinghou returned to his leadership position to overcome the difficulties.
In 2010, Zong Qinghou was named the richest person in China by Forbes with a fortune of 53.4 billion yuan. Then, in 2012 and 2013, Zong Qinghou became the richest person in mainland China three times in four years. In 2013, Wahaha's revenue reached 78.28 billion yuan.
However, since 2013, rapid market changes have led to a continuous decline for Wahaha. To change the situation, Zong Qinghou has been seeking new ways to expand the market and restore viability for Wahaha since 2015. In addition to insisting on developing new beverage categories, Wahaha has invested a significant portion of its energy into the research and development of industrial robots and intelligent equipment. In 2019, at the age of 75, Zong Qinghou made another change and founded Zhejiang Wahaha Intelligent Robot Co., Ltd., to engage in the research, development, and production of intelligent equipment.
With the development of e-commerce in retail, Zong Qinghou has repeatedly publicly advocated for vigorous development in the industry and production, rather than overemphasizing the virtual economy. He also mentioned that "the development of the new economy should ultimately serve the real economy."
In advancing the industry, Zong Qinghou tirelessly ran, arriving at the company at 7 am and working for more than ten hours a day, never looking tired throughout 40 years. When someone asked about retirement at the age of 76, Zong Qinghou admitted that he has no such plans yet. For him, Wahaha is his entire life, all his dreams, and all meaning; his daughter is the continuation of his business. He modestly said, "I'm just an ordinary citizen. As long as I am worthy of the country and worthy of my employees, it's normal."
In December 2021, Wahaha Group officially announced that Zong Fuli would be the vice-chairman and general manager of the group, and her father, Zong Qinghou, would continue to be the chairman of the group.
In 2023, Wahaha's main business achieved double growth in revenue and profit. Zong Qinghou said, "I won't retire, but I will step back to the second line and let the young people go forward. It's time to make some changes and come up with some ideas." When asked about his perpetual energy and motivation, Zong Qinghou said, "As an entrepreneur, I bear social responsibility. This responsibility includes employees, consumers, and people in all aspects of the product supply chain. I cannot stop."
According to Yang Yixin, Zong Qinghou adheres to the "four no principles" in business management - "no listings, no loans, no vice presidents, no real estate," reflecting his confidence and commitment to Chinese-style management. Only in the 29th year of the group's existence was the position of deputy general manager established for the first time. "It was not the main direction of the group's development, but Zong Qinghou relied on these four principles for the company to become bigger and stronger."
For 30 years since Wahaha started its business, it insisted on not going public and not raising funds. "If it becomes public, it has to be accountable to shareholders. If, in the end, the stock price falls, and people lose a lot of money, I don't think it's appropriate," Zong Qinghou said. His goal for Wahaha is very simple: "My dream is to become a store with a century-old history that protects people's health and brings benefits to people."
For this reason, Zong Qinghou has been involved in charity for over 30 years, treating employees to a New Year's dinner every year and giving out red envelopes (a Chinese tradition of monetary gifts). He always said that we must raise employees' wages and provide housing for the youth.
In recent years, Wahaha has annually distributed bonuses of 600 million yuan. In August of last year, due to increased productivity, Zong Qinghou paid all employees additional rewards totaling over 10 million yuan.
The tradition of hosting a New Year's dinner with employees and giving them red envelopes during the Chinese New Year has continued since 1987. But in the New Year's dinner in 2024, Zong Qinghou was absent for the first time.
In January 2020, Zong Qinghou said in an exclusive interview, "For me, there is only one Wahaha. It is the dream of my entire life, the meaning, value, and symbol of everything. It's my dream in this world. Proof of my existence."
Earlier we wrote: Chinese Billionaire and Wahaha Founder, Zong Qinghou, Diead at 79
Until his death, Zong Qinghou remained at the helm of the group, and his life was closely tied to Wahaha. At the age of 42, he founded Wahaha and step by step turned it into an empire of food and beverages. He reached the pinnacle of the industry, experiencing turning points, challenges, and contradictions. Zong Qinghou felt that individual personalities are ultimately insignificant, and he would be satisfied if he could achieve something in a greater era.
Yang Yixin, the director of the Zhejiang Merchants Museum, told an Associated Press reporter on the noon of the 25th that the focused and pragmatic entrepreneurial spirit of Chairman Zong Qinghou, his hardworking work style, and unique management style are typical of Chinese entrepreneurs and traders in Zhejiang province: "Zong Qinghou is a model of Chinese civilian entrepreneurship. His success is the result of the right time, the right place, and the right people - the outcome of the hard work of all the people in Zhejiang province, a hot spot for reform and openness."
Yang Yixin recalled that in 2015, when Zong Qinghou gave a lecture at the Zhejiang New Generation Entrepreneurs Association in the Zhejiang Trade Museum, he said, "If I don't go on a business trip, I'll come." He would be in the office at 6:30 in the morning and leave at 11:30 at night. This means he worked 17 hours a day! In that year, he was 72 years old, and he did this every day.
In 2015, when Zong Qinghou turned 70, Wahaha's total profit and taxes exceeded 100 billion. At the National Food and Wine Fair in Chengdu, he said, "I will continue to work for another 20 years."
Starting from scratch, 160 Cintai Street, Hangzhou, a quiet courtyard amidst the hustle and bustle, houses the 6-story gray building that has been the headquarters of Wahaha Group for 36 years. It's a business story familiar to many: in 1987, 42-year-old Zong Qinghou invested 140,000 yuan to sign a contract with the sales department of a school enterprise in the Shancheng district of Hangzhou, which had been in losses for many years. He began his entrepreneurial journey by selling fruit ice cream. In 1989, Zong Qinghou founded Hangzhou Wahaha Nutritional Food Factory and became its director.
In 1990, the production volume of Wahaha Group, which was only three years old, exceeded 100 million yuan, with over 60 million yuan in bank deposits. With 80 million yuan, he decisively acquired the Hangzhou Canning Factory, a key national canned goods production enterprise with over 60,000 square meters of factory buildings and more than 2,000 employees, but was already insolvent, and founded Hangzhou Wahaha Group Company.
Starting with the instant success of Wahaha Nutritional Solution, Zong Qinghou subsequently introduced Wahaha purified water in 1996 and then launched a series of well-known products such as Wahaha AD Calcium Milk, Very Coke, Nutrition Express, Shuangwaiwai, Iced Black Tea, Babao, and more. Products created by China's largest food and beverage processing enterprise alone allowed Wahaha to become a leader in the domestic beverage market.
One of Zong Qinghou's trump cards in building his business empire is the creation of a unique joint sales model that connects more than 3,000 first-level dealers and 30,000-40,000 second-level dealers to Wahaha. This extreme "closed sales" structure allows the distribution network to maintain a very stable pricing system. Combined with Zong Qinghou's strict control over expenses and distribution systems, this ensures that dealers make money, thus supporting a loyal team of dealers.
In 2007, a notorious scandal occurred. Danone invested 4 billion dollars and sought to acquire Wahaha through a joint venture. Zong Qinghou refused, and both parties turned to the courts. In the end, the Wahaha trademark was returned to Wahaha, and Zong Qinghou returned to his leadership position to overcome the difficulties.
In 2010, Zong Qinghou was named the richest person in China by Forbes with a fortune of 53.4 billion yuan. Then, in 2012 and 2013, Zong Qinghou became the richest person in mainland China three times in four years. In 2013, Wahaha's revenue reached 78.28 billion yuan.
However, since 2013, rapid market changes have led to a continuous decline for Wahaha. To change the situation, Zong Qinghou has been seeking new ways to expand the market and restore viability for Wahaha since 2015. In addition to insisting on developing new beverage categories, Wahaha has invested a significant portion of its energy into the research and development of industrial robots and intelligent equipment. In 2019, at the age of 75, Zong Qinghou made another change and founded Zhejiang Wahaha Intelligent Robot Co., Ltd., to engage in the research, development, and production of intelligent equipment.
With the development of e-commerce in retail, Zong Qinghou has repeatedly publicly advocated for vigorous development in the industry and production, rather than overemphasizing the virtual economy. He also mentioned that "the development of the new economy should ultimately serve the real economy."
In advancing the industry, Zong Qinghou tirelessly ran, arriving at the company at 7 am and working for more than ten hours a day, never looking tired throughout 40 years. When someone asked about retirement at the age of 76, Zong Qinghou admitted that he has no such plans yet. For him, Wahaha is his entire life, all his dreams, and all meaning; his daughter is the continuation of his business. He modestly said, "I'm just an ordinary citizen. As long as I am worthy of the country and worthy of my employees, it's normal."
In December 2021, Wahaha Group officially announced that Zong Fuli would be the vice-chairman and general manager of the group, and her father, Zong Qinghou, would continue to be the chairman of the group.
In 2023, Wahaha's main business achieved double growth in revenue and profit. Zong Qinghou said, "I won't retire, but I will step back to the second line and let the young people go forward. It's time to make some changes and come up with some ideas." When asked about his perpetual energy and motivation, Zong Qinghou said, "As an entrepreneur, I bear social responsibility. This responsibility includes employees, consumers, and people in all aspects of the product supply chain. I cannot stop."
According to Yang Yixin, Zong Qinghou adheres to the "four no principles" in business management - "no listings, no loans, no vice presidents, no real estate," reflecting his confidence and commitment to Chinese-style management. Only in the 29th year of the group's existence was the position of deputy general manager established for the first time. "It was not the main direction of the group's development, but Zong Qinghou relied on these four principles for the company to become bigger and stronger."
For 30 years since Wahaha started its business, it insisted on not going public and not raising funds. "If it becomes public, it has to be accountable to shareholders. If, in the end, the stock price falls, and people lose a lot of money, I don't think it's appropriate," Zong Qinghou said. His goal for Wahaha is very simple: "My dream is to become a store with a century-old history that protects people's health and brings benefits to people."
For this reason, Zong Qinghou has been involved in charity for over 30 years, treating employees to a New Year's dinner every year and giving out red envelopes (a Chinese tradition of monetary gifts). He always said that we must raise employees' wages and provide housing for the youth.
In recent years, Wahaha has annually distributed bonuses of 600 million yuan. In August of last year, due to increased productivity, Zong Qinghou paid all employees additional rewards totaling over 10 million yuan.
The tradition of hosting a New Year's dinner with employees and giving them red envelopes during the Chinese New Year has continued since 1987. But in the New Year's dinner in 2024, Zong Qinghou was absent for the first time.
In January 2020, Zong Qinghou said in an exclusive interview, "For me, there is only one Wahaha. It is the dream of my entire life, the meaning, value, and symbol of everything. It's my dream in this world. Proof of my existence."
Earlier we wrote: Chinese Billionaire and Wahaha Founder, Zong Qinghou, Diead at 79
