Core Insights - The article discusses the recent dealer conference held by Wahaha, highlighting the challenges faced by the company amidst internal turmoil and changes in leadership [1][3][5]. Group 1: Conference Details - The dealer conference had strict attendance criteria, requiring dealers to achieve cumulative sales of over 15 million yuan to participate, which is a significant increase from previous years [1][21]. - The absence of former chairperson Zong Fuli at the conference raised questions, as she had previously been a prominent figure in such events [2][3]. - The conference was primarily organized by Hongsheng Group, which controls most of Wahaha's dealer network, indicating a shift in power dynamics within the company [5][22]. Group 2: Financial Performance - Wahaha reported a revenue increase of 500 million yuan, maintaining a stable performance despite a challenging market environment [6][7]. - The company’s revenue for 2023 was approximately 50 billion yuan, and projections suggest that revenues for 2024 and 2025 may remain around 70 billion yuan [10][11]. - The performance of water products has been particularly strong, serving as a key driver for overall revenue growth [10]. Group 3: Market Position and Strategy - Wahaha's distribution strategy remains robust, with a strong presence in lower-tier markets, which is seen as a competitive advantage over other brands [19][20]. - The company has a well-established distribution network that allows it to reach rural and township consumers effectively, leveraging its logistics capabilities [19]. - Despite internal challenges, dealers express that as long as their business remains unaffected, they are primarily concerned with profit margins and incentive policies [22]. Group 4: Brand and Leadership Challenges - The current leadership vacuum at Wahaha, following Zong Fuli's resignation, raises concerns about the company's future direction and governance [3][26]. - The brand's value as a national icon remains strong among dealers, despite the internal conflicts and shifts in management [26]. - The ongoing power struggle between Wahaha and Hongsheng Group reflects a broader tension within the company, complicating its operational and strategic decisions [5][26].

Core Points - The article discusses the recent dealer conference of Wahaha, highlighting the challenges faced by the company amidst internal turmoil and changes in leadership [4][6][22] - The sales performance of Wahaha is reported to have achieved a revenue growth of 500 million yuan, despite a challenging market environment [7][11] - The dealer conference had increased entry requirements, with a minimum sales threshold of 15 million yuan, reflecting a shift in the company's approach to dealer relationships [2][19] Group 1: Company Leadership and Structure - After the resignation of Zong Fuli as chairman, the position remains vacant, with Xu Simin, the new general manager, making his first appearance at the dealer conference [4][6] - The conference was organized under the auspices of Hongsheng Group, which controls most of Wahaha's dealer network, indicating a complex relationship between the two entities [6][22] - Zong Fuli's absence from the conference and her recorded message of gratitude to dealers highlights the ongoing disconnect within the company's leadership [3][4] Group 2: Sales Performance and Market Position - Wahaha reported a revenue increase of 500 million yuan for 2025, maintaining a stable performance despite market challenges [7][11] - The company’s water products have been a significant contributor to this growth, particularly large-scale products for home and outdoor use [10] - The sales figures suggest that Wahaha's revenue for 2024 may be around 700 billion yuan, indicating a recovery from previous years [11] Group 3: Dealer Relations and Market Strategy - The entry threshold for dealers has been raised, with some expressing concerns that future requirements may become unattainable [2][19] - Dealers have noted that while internal conflicts at Wahaha are concerning, their primary focus remains on profitability and incentive policies [19] - Wahaha's extensive distribution network allows it to penetrate rural markets effectively, maintaining a competitive edge despite challenges from other brands [17][18]

Core Viewpoint - The internal conflict within Wahaha has taken a significant turn, with the announcement that the "Wahaha" brand will continue to be used in 2026, contradicting the previous plan to launch the new brand "Wah Xiaozong" after the resignation of Zong Fuli [3][4][20]. Group 1: Company Dynamics - Zong Fuli's leadership has faced challenges, including a power struggle and the need for significant operational reforms within Wahaha and the Hongsheng system [6][8]. - The company has experienced stagnant revenue around 50 billion since 2014, with recent growth attributed to the passing of founder Zong Qinghou [8][41]. - The restructuring efforts led by Zong Fuli have included a complete overhaul of the management team and a shift in the distribution channel strategy, aiming to revitalize the company's performance [8][29]. Group 2: Brand and Market Position - The Wahaha brand, owned by the state, is crucial for the company's identity and market presence, with ongoing disputes over its usage rights [19][20]. - The beverage market has seen significant competition, with brands like Nongfu Spring and Yuanqi Forest gaining market share, highlighting Wahaha's struggle to innovate and adapt [8][41]. - The company's sales have declined sharply, with a 37% drop in AD Calcium Milk sales and a decrease in market share for its purified water products [41]. Group 3: Internal Conflicts and Reforms - Zong Fuli's aggressive reforms have led to significant layoffs and restructuring, resulting in a reduction of the number of distributors from over 6,000 to around 3,000 [39]. - The internal conflict has escalated, with employees expressing dissatisfaction over contract changes and the cancellation of profit-sharing arrangements, leading to collective lawsuits [17][40]. - The company's reliance on a traditional distribution model has hindered its ability to push new products effectively, necessitating a shift towards a more controlled distribution strategy [30][31].

Core Viewpoint - The recent rebranding of the original "Wahaha Official Flagship Store" to "Tongyuan Kang Food Specialty Store" has sparked industry attention, indicating a significant shift in the operational strategy of Wahaha under the leadership of Zong Fuli, amidst ongoing family disputes over inheritance [4][10]. Group 1: Operational Changes - The former Wahaha flagship store has transitioned to an independent operation, now selling various food products, while a new Wahaha flagship store has been launched, operated by Hangzhou Hengyi E-commerce Co., Ltd. [4] - Zong Fuli has initiated a series of reforms across supply chains, trademarks, traditional distributors, and e-commerce, aiming to regain control and improve operational efficiency [4][10]. Group 2: E-commerce Strategy - The e-commerce sales of Wahaha have seen a drastic decline, with a reported 50% drop in sales by Q2 2025, and a 37% decrease in sales of AD Calcium Milk in East China, highlighting the inadequacies of the previous distribution model [6][11]. - The decision to reclaim e-commerce channel rights and implement direct sales reforms is seen as a strategic move to enhance brand image and consumer data acquisition [6][7]. Group 3: Distribution and Supply Chain Reforms - Zong Fuli's reforms include eliminating distributors with annual sales below 3 million, consolidating operations under larger distributors to address long-standing issues such as inventory discrepancies and debt disputes [7][10]. - The ongoing supply chain optimization involves shutting down multiple factories and terminating partnerships with certain contract manufacturers, which also impacts the interests of Zong Fuli's stepmother and her children [10]. Group 4: Future Outlook - The company faces increasing scrutiny regarding its ability to maintain performance amid market challenges, with a pressing need for new flagship products to sustain sales growth [11].

Core Viewpoint - The article discusses the internal and external challenges faced by Wahaha under the leadership of Zong Fuli, particularly in light of the ongoing inheritance dispute and her management style, which has led to dissatisfaction among employees and distributors [5][9][10]. Group 1: Management Changes and Employee Dissatisfaction - Zong Fuli has not appeared at the company for over a month, leading to speculation about her whereabouts [5][6]. - Since taking over after the death of founder Zong Qinghou, Zong Fuli has implemented significant reforms, including layoffs and a management style that differs sharply from her father's [9][10][25]. - Employees and distributors have expressed dissatisfaction with Zong Fuli's management, citing issues such as unrealistic sales targets and a lack of support [12][13][16]. Group 2: Legal and Financial Issues - A lawsuit involving over a thousand employees regarding the 2018 employee stock buyback has intensified the conflict within the company [11]. - Distributors have reported financial losses and difficulties in reimbursement processes, leading to further frustration with the company's management [12][13][38]. Group 3: Strategic Direction and Market Position - Zong Fuli aims to modernize Wahaha's management structure, focusing on data and results, contrasting with the previous "people-oriented" approach [28][30]. - The company has not launched new products since Zong Fuli took over, indicating a pause in innovation while she focuses on restructuring the sales system [33][35]. - Wahaha is shifting towards a more controlled distribution model, which has faced resistance from distributors who feel their interests are threatened [39][40]. Group 4: Current Operations and Future Outlook - Despite the turmoil, Wahaha's production lines are reportedly operating normally, and the company continues to function internally [21][22]. - The article suggests that the effectiveness of Zong Fuli's reforms and the company's future performance remain uncertain, with ongoing challenges in sales and employee morale [42].