After Zong's severed finger: the War of pluralism and the pressure of succession

September 18, Hong Kong media disclosed that China's former richest man, chairman of Hangzhou Wahaha Group in the early morning of Friday in the vicinity of his home was cut off four fingers of the tendon, the incident was suspected to be related to the recent series of Wahaha business adjustment. According to the Bloomberg Billionaires Chart, the chairman of the Wahaha Group, who estimated $11 billion trillion in net asset value, became China's second richest man last year, with 10.5 billion dollars as the richest man in China in 2012. Xinhua quoted police as saying that the early morning of September 13, after Zong was attacked in the vicinity of the city of Hangzhou, the hand injury, was rushed to the nearby Zhejiang University affiliated second hospital for treatment, diagnosed by the hospital, the left hand has two finger muscle keys injured. On the afternoon of 13th, Hangzhou police arrested a suspect in a rented room in Shangcheng District. According to Yang MoU, in the television show after the enthusiastic help for migrant workers interviewed, but also want the assistance in his company to arrange a job, then to the vicinity of Zong Qing after the case, because of the failure, so the implementation of the illegal act. 18th, the newspaper repeatedly called Wahaha spokesman Tanqining, but the other side declined to disclose further information. "The boss is not in general with bodyguards. "18th, a person who had a business with Zong Qing told the newspaper that after Zong-Qing, privately low-key, very few people grudges." And Wahaha inside the attack on the boss is also very puzzled, "the place is not the home after the Zong, the pope also rarely past, do not know why he appeared that day, do not know why will be attacked." "said one of the Wahaha insiders. From the issue of the successor to the dismissal of senior executives "rumors", and then hit the top, Wahaha has entered an eventful. In recent years, Wahaha put forward a pluralistic strategy, has entered the milk powder, children's wear, supermarkets and energy-saving motor field, too long business front scattered the beverage empire's energy, but also let its once proud dealer system was impacted. Previously, people close to the group said that Wahaha business is in the near future major internal adjustment, the entire company in addition to the General manager, vice president and other leadership staff were dismissed, the original team also faced the possibility of dissolution. 12th, Mr Zong admitted that a deputy general manager had been removed from office and said he had been shaken by rumours that it had been circulated after his dismissal. The following day, Zong was attacked. After Zong's daughter Zong Fuli in August at the end of the media interview Blunt, Wahaha has been to a "dangerous period", the dealer system has actually become the weakness of Wahaha, in addition to the lack of Shanping, diversification of the problem of rampant business. The big problem of Wahaha business Wahaha in the logistics, procurement, business operations, such as the operating advantages do not have a business advantage, so the developer is more difficult since 2002 announced into the children's wear industry, Wahaha clearly put forward a pluralistic strategy, has entered the field of milk powder, supermarkets and energy-saving motor. Du Yan, a researcher in the investment consultancy retail industry, believes that Wahaha promotes diversification and aims to avoid the risk of a single market and break the profit bottleneck after the development of the enterprise. But in the current domestic supermarket development downturn in the background, Eva HaKazakhstan to enter the business of exceeding retail pressure. In November 2012, Wahaha opened the first Eva Boutique shopping mall (Waow PLAZA) in Hangzhou Qianjiang New Town, and threw out the 3-5 Eva shopping mall in the country in 2013, 80-100 Independent brands joined the franchise store, invested 10 billion yuan in 3-5 years in the country one or two, three, Four-line city to open large shopping malls and franchise stores the grand vision. According to the above said after the talks with Zong, Zong Qing has always attached importance to the control of the channel, in recent years, and stores in the return point, admission fees and other issues on the friction, so that Zong Qing more determined since the establishment of the downstream retail channel ideas. To this end, Wahaha United Zhejiang, Hunan Province, some of the distributors, through the way of fund-raising to set up a Wahaha commercial AG, the first phase of investment 1.7 billion yuan, the main development of boutique shopping malls projects. Zong also specially designed for EVA Europe "level three business Operation Model", that is, foreign brands-domestic regional agents-retail, stores, the middle skipped foreign distributors and Hong Kong agents two-tier relationship. But in Du Yan, this "buy hand" mode needs Wahaha experience and professional accumulation, but wahaha in the logistics, procurement, business and other aspects of the operation does not have advantages, so the developer super business difficult. So far, Eva Auzhang only opened a shop in the country. "In addition, the employment costs and property rents have been eroding the profits of the retail industry, which is a big problem for Eva." "The business model of Wahaha is a combination of leasing and self construction," a senior retail official told reporters. "If it is not owned property, the rise in rents will inevitably become a big problem for wahaha business." "The succession pressure for the diversified business of Wahaha, Zong Fuli that has reached the" flood "degree, more blunt dealer system has become a weakness of wahaha according to Wahaha planning, this year's beverage sales will reach 70 billion yuan. "In addition to the beverage sector, I will devote a lot of energy to the retail business in the future." Zong said publicly. But for the 67-Year-old Zong, it is also urgent to nurture a capable successor. The 31-Year-old Rhinebeck Zong Fuli is recognized as a successor to the post-Ching cause. Public data show that Zong Fuli 2005 as the Wahaha Group Xiaoshan second Base Management committee director Assistant, after successive Xiaoshan Base Management Committee deputy director, Hangzhou Wang Sheng Beverage Group president and other posts. At the same time, Zong Fuli also Hangzhou Wahaha Children's Wear Co., Ltd. and Hangzhou Wahaha Karina Daily Products Co., Ltd. General manager. Zong Fuli in foreign education in addition to his father after the strong dare to the characteristics of the operation of the company also has its own unique views. For the diversified business of Wahaha, Zong Fuli that has been to the extent of "flooding", more blunt once by Zong was proud of the dealer system has become a weakness of wahaha. Over the years, Wahaha has built a 8,000-level wholesalers and thirty thousand or forty thousand two-level, three-level wholesalers, a strong sales terminal marketing network, and through the granting of proxy, pay high margin benefitsand other measures and dealers formed a community of interests. and to promote this ecological normal operation is, there is no hot products enough to make the chain of all aspects of the benefits of sharing, so Wahaha has to constantly introduce new products to maintain this huge system. A Wahaha advertising agency personage to this newspaper disclosed, in order to promote the Kai Li and Gwavas sales, Wahaha at the top of the title of the multi-column TV program, advertising budget than last year increased by more than 10%. In his view, one of the reasons behind Zong's doing so is to build a solid foundation for his successors. However, although Gwavas is the main product of Wahaha this year, but its positioning is not clear, the market acceptance is not high, the overall product sales are not optimistic. DU Yan Macro believes that Zong Qing has gradually put the company's business to daughter Zong Fuli care, but because daughter Zong Fuli or with Zong Qing in the management, company development strategy is different, this to the future development of Wahaha increased uncertainty.