Zong Qinghou: Entrepreneurship Depends On Feeling.

In 1987, when he was 42 years old, he drove the yellow fish cart to sell ice lolls on the streets of Hangzhou. He would never have imagined that after more than 10 years, the Wahaha Group, created by him, would become the largest beverage company in China.

In 2002, Wahaha Group's sales revenue was 8 billion 800 million yuan, and its net profit reached 1 billion 200 million yuan.

When Zong Qinghou talked about his entrepreneurial experience, his answer was simple: "entrepreneurship is based on feeling. I may feel more accurate."

From the ice lolly to the Wahaha, Zong Qinghou was born in the "only born theory". He was born in the "old bureaucratic descendants" and made him feel the hardships of life.

At the age of 16, Zong Qinghou was "arranged" to fill the beach in Zhoushan, Zhejiang, for 15 years.

In 1979, Zong Qing took the place of his mother and returned to Hangzhou to work as a school worker.

In 1987, he and two retired teachers formed a Distribution Department of school run enterprises, mainly sending stationery and ice lollies to nearby schools.

In the delivery process, Zong knew that many children had poor appetite and malnutrition, which was the biggest headache for their parents.

At that time, I felt that there should be a big market for children's nutrition solution.

Zong Qinghou was determined to seize this opportunity to fight when he was strong in the sea. He was 47 years old and had missed the best age to start a business.

In the face of many friends' persuasive persuasion, Zong is obviously obstinate: "can you understand a 47 year old middle-aged man in the face of the last opportunity in his life?"

In 1988, Zong Qinghou led the school run enterprise to borrow 140 thousand yuan, organized experts and scientific researchers, and developed the first nutritious drink for children - Wahaha children's nutrient solution.

With the Wahaha, the food is fragrant and the advertisements spread all over the world.

In the fourth year, the sales revenue reached 400 million yuan and the net profit was about 70000000 yuan, which completed the initial primitive accumulation of Wahaha.

In 1991, the sales volume of Wahaha children's nutrient solution soared and the market was in short supply.

But even so, Zong Qinghou maintained a strong sense of crisis: "at that time, I felt that if Wahaha did not expand the scale of production, it might lose market opportunities.

But in the light of the traditional development ideas, projects, land acquisition and infrastructure construction will be less than two or three years at the time, and it will probably get into a predicament that the factory will not sell well.

Zong Qinghou aims to expand his target of expansion to the canned food factory in Hangzhou, a state-owned old factory in Hangzhou.

At that time, there were more than 2200 workers in Hangzhou canned food factory, and they were seriously insolvent. At that time, Wahaha had only 140 employees and hundreds of square meters of production sites.

In front of Zong Qinghou, there are three ways: first, joint operation, two leasing, and three paid merger.

Obviously, the first two roads are stable, while paid mergers take considerable risks.

But Zong Qinghou finally decided to come up with 80 million yuan of huge sums of money and take third roads.

The act of "small fish eating big fish" caused a sensation in the whole country.

Zong Qinghou finally took the lead. "Wahaha" quickly activated the stock assets of Hangzhou canning factory, expanded production by using its factories and employees, and turned it into a profit in three months. The sales revenue and profits and taxes in second years increased by more than 1 times.

The merger in 1991 has laid the foundation for the subsequent development of Wahaha, and also allowed Zong Qinghou to enjoy the fun of mergers and acquisitions.

After that, M & A was almost the mainstream of Wahaha's expansion. By the end of 2002, Wahaha had built 30 production bases in 22 provinces and cities outside Zhejiang. In 2002, Wahaha produced 3 million 230 thousand tons of beverages, accounting for 16% of the country's beverage output.

If the early mergers and acquisitions make Wahaha grow rapidly, then the strategic cooperation with Danone will help Wahaha strengthen.

In 1996, Wahaha's products had expanded from a single child nutrient solution to three major categories, including milk drinks and bottled water, and the Wahaha benefits were good at that time.

"But I feel that there has been a crisis. The weakest part of the business is that it is too small."

Zong Qinghou once again talked about his feeling. "At the time, besides nutrient solution, our main products were fruit, milk and purified water, which had almost no competition with our strength and brand."

Zong Qinghou made a long-term plan for investing billions of dollars.

"At that time, such a huge investment, through the bank is very difficult, domestic private financing is even more impossible.

Finally, we think of international and foreign capital.

Since the establishment of 5 enterprises jointly with Danone Group in 1996, the cooperation between Wahaha and outside funds has been more and more extensive. Danone Group has invested nearly $100 million.

"Almost every year tens of billions of external funds come in to make Wahaha use, which keeps the company developing at a high speed."

Zong Qinghou said excitedly.

The foundation of the joint venture is good.

It can seize the mentality of foreign investors and satisfy them and avoid foreign businessmen's right to operate. Therefore, the joint venture between Wahaha and Danone has failed to fail like many joint ventures in China, and the annual return on capital of the joint venture company is above two digits.

In the history of Wahaha's growth, it's an indispensable part of the success of Wahaha's growth.

Coca-Cola and Pepsi Cola have been in existence for more than 100 years, and occupy an absolute advantage in the global beverage industry.

In the late 70s of last century, the two music began to enter the Chinese market, and soon occupied the half of China's beverage market.

After contacting many distributors, Zong Qinghou found two defects in the two music market operation: on the one hand, the decision of "two Yue" was too dependent on data model analysis, and the process was too long to completely cover the vast countryside. Moreover, two Yue had not thought of entering the rural market in the 20 years since he entered China. On the other hand, the endless pursuit of "two music" to the high profit made her distribution team lack centripetal force.

With the steady market position of "two music", the two music has gradually shifted to the deep distribution mode that attaches great importance to the terminal of big cities, and the profit margins of distributors have been getting smaller and smaller.

Zong Qinghou again felt the opportunity.

In 1998, Wahaha launched a very coke and formally challenged the "two music": the "very series" rooted in the vast rural areas and firmly grasped the situation of "two music" in a relatively low level of recognition in the countryside, and cut it at a low price. At the same time, the very series gave the dealers enough profit margins, and soon placed a prominent position in the dealer counters.

It is precisely because of the shortcomings of "two music" that we are firmly grasping the "happiness".

In 2002, Wahaha "very series" carbonated beverage production and sales reached 620 thousand tons, accounting for about 12% of the total carbonated drinks market in the country.

Although the "two music" in urban and developed areas still has absolute advantages, the vast rural market has been almost "controlled".

In May 20, 2002, Wahaha children's clothing company held a display conference on Wahaha children's wear in Beijing.

Wahaha has been spreading for many years and has taken the first step.

And this step is actually children's clothing, somewhat unexpected.

"Children's wear is only a new fulcrum for Wahaha's cross industry operation, and is the foundation for Wahaha's further diversification."

Zong Qinghou said.

Zong Qinghou's plan is to open 800 children's wear stores in the country by adopting the zero affiliate fee, and become one of the largest brands of children's clothing in China.

In fact, when the products of pure water, cola, milk drinks and other products are making a profit, Wahaha has already felt the crisis of market saturation.

The big pattern of the national beverage market has already been formed, and there are not many places that can be opened up in a big way. This is no longer enough for Zong Qinghou to satisfy.

Until now, the rumour about Wahaha's diversity has not been broken: Wahaha once established a joint venture health care product factory with a health care product company in Britain, but Zong Qinghou finally postponed the entry date of the big mold with "now entering health care products and market timing is not yet ripe". Wahaha has annexed a winery, but then Wahaha has not invested much in wine. The Wahaha vitamin lozenge is successfully listed, but Zong Qinghou's idea is "too much trouble in the pharmaceutical industry."

Zong Qinghou, 58, said: "we have more than ten billion free funds and will invest in two fields in the future: food, health products, medicines and two of all children's products."