Core Viewpoint - The resignation of Zong Fuli from Wahaha Group marks a significant shift in the company's leadership, raising concerns about the future direction of the company in the post-Zong Qinghou era [4][10]. Group 1: Leadership Changes - On October 10, Wahaha Group's board officially approved Zong Fuli's resignation and appointed Xu Simin as the new general manager, leaving the chairman position vacant [4]. - Zong Fuli's departure is interpreted by some as a strategic move towards independent management rather than a defeat [6][10]. Group 2: Macro Beverage Industry Context - The beverage market in China is highly competitive, with Wahaha's market share declining and facing challenges from rivals like Nongfu Spring [18]. - The soft drink market is described as a "red ocean," indicating intense competition and saturation [18]. Group 3: Macro Beverage Industry Context - The macro beverage industry is characterized by a significant reliance on brand recognition, with established brands having a competitive edge over new entrants [19]. - The article highlights that Zong Fuli's new brand "Wawa Xiaozong" lacks a unique selling proposition and faces challenges in gaining market traction [19]. Group 4: Financial Performance - In 2024, the net profit of Hongsheng Group reached 4.767 billion, while Wahaha Group's net profit plummeted by 98% to only 18.71 million [13]. - The financial disparity raises concerns about the sustainability of Wahaha Group's operations under the new leadership [13]. Group 5: Internal Conflicts and Governance - The existence of the Hongsheng Group, controlled by Zong Fuli, has created internal conflicts within Wahaha, leading to significant operational changes that favor Hongsheng at the expense of Wahaha [11][13]. - The article suggests that Zong Fuli's aggressive restructuring efforts have alienated key stakeholders, including state-owned shareholders and employees [14][20]. Group 6: Future Outlook - Zong Fuli's ambitious sales target of 30 billion for "Wawa Xiaozong" is viewed skeptically given the current market conditions and the brand's lack of differentiation [18]. - The article concludes that Zong Fuli's leadership style and decisions may not align with the expectations of a successful corporate leader, suggesting a need for a strategic retreat [20].