Dialogue Zong: Wahaha Why enduring 25 years? i world network operators NOTE: Wahaha beverages by selling children started out over 25 years to build a famous brand, also known as the founder Zong business legend. The authors conducted in-depth dialogue with Zong, Wahaha's corporate strategy involves many issues of concern outside the internal management, succession issues and marketing strategies, which we can see the secret to maintain the vitality of a traditional brand. Text / square Yan Wang Chao 1987, the founder of Wahaha Group, Zong from stepping on a tricycle consignment popsicle, soda and school books began the arduous journey as an entrepreneur, no one thought that this company will become a giant in China's beverage industry, after 25 years of trials and enduring. Zong and his family, and therefore sitting on 80 billion yuan of assets, has become China's richest man (according to the 2012 Hurun). Wahaha beverages started by children, propagation effects by means of the formation of a full range of advertising, with a unique marketing system to expand the market, create a famous brand. 2006 to 2009 \u0026 ldquo; Danone Wahaha dispute \u0026 rdquo; let Wahaha although highly controversial, but it is a blessing in disguise, and further enhance the brand awareness. The Wahaha contemporary brands, such as three oral, Robust but gradually decline, become history. In 2011, Wahaha has become an annual revenue of 67.8 billion yuan of \u0026 ldquo; Chinese beverage king \u0026 rdquo ;. As a successful private enterprise, Wahaha some business management has a unique place: For a long time, Wahaha has not developed a long-term strategic planning, not the establishment of deputy general manager, Zong is also a strong leader. Unique people must have unique, the correspondents into the army in downtown Hangzhou Wahaha located five Xiaobailou Zong interview.
The White House is the place to start entrepreneurial Zong year. Develop strategies intuitively HBRC: Some media reports say that you do not focus on long-term planning, but increasing the size of Wahaha, the next 5-10 years, Wahaha have any plan to deploy it? Zong: no. We now have only one long-term goal only, and that is a few years later made the Fortune 500, the target staff know. But if 5 years or 10 years of long-term planning, you set out, given it's useless. The market changes so fast, social development soon, you can expect 10 years later how to do? HBRC: Wahaha currently planning to do more long? Zong: We generally do this year planning for next year. We will in the second half of this year according to the market situation, to see what key investment projects next year, what development goals, in December next year will be a good plan. Then assigned to specific numbers, specific implementation continues this will have success. You say 10 years after the plan how fixed? I can not be. HBRC: The following business units about when to begin to develop plans for next year? Zong: they began to develop early November. Group of the entire development goals hair down, and then they go to the development of specific planning of their department. To the end, they keep company signed a contract of responsibility. Who is responsible for the implementation, who signed a contract of responsibility. HBRC: Wahaha develop a strategy when you do market research? Zong: The company was doing, but the final decision still rely on my intuition, research institutions is not necessarily right. Now many of them are theoretical research. In fact, their actual research is more accurate. You have accumulated a lot of experience in the market, one can tell how it was. Current market conditions, I take a look at the report will know what the problem is. HBRC: Wahaha how to develop a specific strategy? Your personal shots, or we will solicit the views of company middle, or also refer to the consulting firm opinion? Zong: We are not out to do consulting, strategy development, our main staff consultation based. We first summary report as well as all aspects of intelligence, and setting goals. The goal then come up for discussion, comments. This is important, because employees can not make a very comprehensive program, the company must first out scheme, further discussion. HBRC: how widespread the comments? Zong: everyone will participate, starting with mid-level cadres, and then discussed by the workers' congress passed, eventually objectives into each employee's head. HBRC: have someone to supervise the implementation of it? If you do not complete the task, you will be penalized it? Zong: Production Department oversees, so I put together plans and Production Department. If they do not complete the goal will be allotted bonus, what did not do well this year, the next effort, and then not come down. HBRC: That will give him a chance? Zong: This depends, as determined by the following regional managers, distributors, account managers to vote. If he is down this year, and next year you can also re-competition, without any restrictions. Simple diversified HBRC: Wahaha development for 25 years, operating income 67.8 billion yuan in 2011, as many as 29,000 employees. We note that over the past two years, sales of Wahaha is growing rapidly, but the overall growth rate was slowing. Do you think the overall rapid growth of Wahaha can be maintained, how to maintain? Zong: This year, China's beverage industry growth are slowed by more than 20% to 10% more. This is mainly with food safety-related public opinion environment is not good. Two years water sales have been growing, share of about 40% of the beverage industry. External sense, water is water, there is no other ingredients, the media have too far, this view causes beverage industry slowdown. Plus, over the entire development of the beverage industry, but also affect the industry continues to grow. In order to maintain the growth momentum, Wahaha ongoing diversification of exploration.
The company's funds more, even if the beverage industry billions of dollars invested every year, there are more than idle funds on hand, in addition to the company's relatively strong talent pool, the overall strength of a strong, diversified development conditions. HBRC: Wahaha which attempts to diversify? Zong: We are developing bio-engineering technology, the beverage products lead the health care field. Due to the current number of food safety is a problem, consumers get that wrong, I hope they go back to eating these problems. In addition, I also develop some high-tech industries, the company cooperation with the University of Nottingham, Institute of Electrical and Mechanical Services was established to develop energy-saving motors. Which is conducive to environmental protection, but also to encourage the direction of national development. At the same time, we are also developing the retail, build European boutique shopping. Currently, the country is to encourage imports, the government also hopes that China's domestic consumers can buy European quality, thereby increasing the state tax revenue. We also want consumers to be able to buy relatively cheap European products. HBRC: When you carry out a wide range of, how to choose these industries? Zong: I was both upstream and downstream development, the principle is simple and familiar to hold their own industries. For example, the company has two aircraft plant, a lot of imported equipment are their own maintenance, we acquire the relevant technology. Business diversification, the key to see whether they need to see that they have no ability to second, third to see that they have no chance of successfully enter. If you have a monopoly in the industry, such as telecommunications, energy, and we want to go too anyhow. HBRC: Wahaha Group has been into commercial real estate, but in the end did not enter the real estate industry, and why? Zong: We do not have to enter the real estate industry. There was a time, many companies believe that a lot of opportunities for the real estate industry, and I feel good, why not do it? Because getting into too much trouble, keep many people deal more complicated, I do not like to drink, do not love to socialize. So the industry is not for me. HBRC: the future, what do you intend to enter the industry? Zong: I would choose the high-tech industry, do not do this stuff home. Such as energy-saving motors do not come home, so I'm going to look for cooperation partners abroad. This can speed up our country to improve the technical level. Currently, the state should introduce a large number of foreign talent, a talent to get things done. Foreign positive massive layoffs, introduce them, we develop it faster. HBRC: Do you think the biggest challenge encountered by enterprises in the diversification of what is the talent pool, or to judge the market? Zong: or a variety of talents. Now I think not difficult to attract talent, including foreign talent, we will attract a lot of them come in. HBRC: How do you measure the success of diversification, it is based on sales or market share? Zong: This is not as obvious, I would at any time be adjusted according to changes in the market. For example, do children's clothing, its market capacity is relatively small, over-development could be counterproductive, only to let it develop steadily. Explore the international market too early HBRC: At present, Wahaha also some overseas mergers and acquisitions, such as the acquisition of dairy base in Australia, and what your internationalization strategy? Zong: we acquired abroad mainly in the establishment of production lines, and to give them OEM Wahaha products, then export back into the country. We have contact with many international companies, they have great confidence in us and are willing to cooperate with us. Wahaha high reputation in the international community, because we are taking a win-win cooperation. HBRC: Why not consider extending the overseas market? Zong: You go abroad to acquire the factory and in the local sales, will increase competition in the local market, it is difficult to achieve the desired sales. Large local companies will certainly make things difficult for you. Strong dragon does not push local snakes, you get the better of them? In retrospect, many companies a lot of large-scale investments are failures and losses. You acquire local firms, people are might, you go in they might. The power of the people is strong unions, high taxes and high welfare society, it is difficult to acquire success. Wahaha only overseas OEM, which addresses the product market, has been the raw material resources, which is a win-win. Partner am glad that I have to reduce the risk, do not invest.
The other hand, China is a large population, large-scale market. Domestic and foreign enterprises are to seize the Chinese market, cosplay black butler you have to first do the job in this market. HBRC: this production abroad, including the way the market is short-term plan, or long-term strategy? Zong: Wahaha explore the international market, less heat. Like the European economic downturn, you export the EU, local demand has dropped, you did not earn any money. Wahaha to build European boutique shopping, is another idea. We went to a lot of fine European buyers, as a major trading partner of the EU.
You buy its products, undoubtedly help, it is naturally very happy. HBRC: When do you think is the right time to develop the international market? Zong: Now people do not recognize you, only in China more powerful when Wahaha will expand overseas markets. Some people say that Chinese brands do not try to stay out of the herd is always at the low end, I do not agree. From the international market, the other still feel you in \u0026 ldquo; \u0026 rdquo ;. race to the bottom You are now low-cost access to international markets, not your quality is better than others, how can it get good grades? Chinese enterprises rely on others dismissive cheap products into the international market, left to its own pollution, the internationalization of little significance. You only have to do more advanced than others, and then enter the international market, people just recognized you. Therefore, internationalization of Chinese enterprises on the premise that the development of their own "tales of the abyss cosplay " as soon as possible to improve their grades and levels of knowledge. Willing unwilling to take over, with her HBRC: every founders want their businesses to Everlasting, become a hundred years old. When you want to retire in the future, genetic heritage Wahaha what? Zong: Wahaha was 25 years old, firm size bigger and bigger, no debt, the overall risk is relatively small, but also innovation. Just this to stay in business, companies will not be a problem. Wahaha business problems to be solved is too dependent on me, I'm too fine style of work, employees are more likely to trust me, causing them strong dependence. In the future, I will be a good number of rules, let go more slowly to reduce dependence on my staff. Of course, this would be relatively lower efficiency, but must go through this process. My daughter, too, let her do it, I'll deal with follow-up questions, she slowly began to change. HBRC: Do you think a qualified successor should have what conditions? Zong: First, to maintain business continuity. Ability, he must have the spirit of cooperation, the staff to really convince him. The so-called prestige, not only prestige, employee trust also important. Wilson can not rely on the terms of reference to establish, leaders need to address all aspects of the relationship, give employees a sense of security. Wahaha staff is very stable, no intrigue. The more complex the business, the more troublesome development. HBRC: What do you want people to inherit the spirit? Zong: hard work of all employees are required to maintain the spirit. If the employee is not diligent, the company they might. Therefore, enterprises should vigorously promote the mechanism of competition, and always maintain forward momentum. Incentives may not be able to improve the power, but if it is not, the employees certainly will not go forward. So we have competition every year, those who can afford under the commonplace, people down the shares, bonuses and wages have declined. To do so, employees will have a sense of crisis, we must work hard. HBRC: reference to inheritance, some media say that you have not yet decided, the enterprise is to daughter or a professional manager, you have a clear inheritance plan? Zong: The second generation of private entrepreneurs, half is not inherited. The first generation of business is to create a relatively low level of self-education is generally not high, but the second generation basically had studied, highly educated, with the first generation of distinct vision, they have not had it tough, the idea will be different. My daughter would be willing to inherit and manage Wahaha, see her personal wishes. She now is quite interesting. She worked in the United States to study, independent and strong. HBRC: your daughter has been working for eight years at the company, are you satisfied her performance? Zong: it can also, she is more diligent.
Her hands even afraid of her staff to be afraid of me. HBRC: What positive changes brought your daughter to Wahaha is? Zong: She did a good job in terms of personnel training, to enable some young people. They grow faster. HBRC: your daughter is primarily responsible for what business she was able to maintain the cohesion of the dealer it? Zong: children's clothing, fragrances, printing business is her own doing, she is also involved in the beverage business. Kids now managed by her dealer. Initially, dealer meeting I attended speech, and now they have ignored me, by her own chair. HBRC: daughter encounter problems, will consult you? Zong: I will let go, her basic things I would not care. Encountered a problem she would ask me, no problem, she would not ask. Her self-esteem and strong, feeling something wrong and she would reflect. Deputy Minister of equivalent HBRC: It is said that the size of the transaction by the company you manage a person, it is now the case? Zong: management structure we started early adjusted. Outside the legend, what are my own doing, I can there be so much skill. Although there is no vice president, general manager of Wahaha only one, but so much is actually equivalent to the Deputy Minister, just do not call it the Deputy. A few years ago I started a direct authorization. HBRC: Why did not you become the Deputy Minister? Zong: This is the design of the planned economy model, I think so arranged things efficient. Including the current state-owned enterprises, the decision is relatively slow, mainly because there are many companies Deputy, as well as deputy party secretary. The lower the policy makers more efficient, but if the Minister, lower level, there is no way with the passing leader. Of course, it does not matter the market economy, the vice president will not be more wrangling. HBRC: That you will set up the Deputy it? Zong: I now consider who serves as vice president of promotion is good, these are the equivalent of deputy chief minister. Mention who will be a blow to other ministers. HBRC: Wahaha management system is how the hierarchical authority? What is the need for you to approve the program, the Minister can decide what program? Zong: No matter how much the amount, investments are needed after my approval. I'm definitely not a small amount of investment. For example, we invested in a production line going over 100 million yuan, since the introduction of equipment is the best, the price is high. But it soon returns, low cost, good quality. HBRC: Wahaha senior managers are relying on the internal culture of it? Zong: Most rely on internal training. We have a long-term reserve cadre training mechanism, himself enrollment, the HR department is responsible for training and selection. HBRC: At present, the company began to diversify, it will consider the introduction of professional managers it? Zong: Wahaha There is no professional managers.
China has not yet formed a group of professional managers, German and only terms are not enough, certainly not jumping. Of course, we also introduce some outside talent, but mainly technical personnel. Management personnel or their own culture, they need to accept Wahaha culture. Strong enlightened management style HBRC: What is your management style? Zong: I'm a strong liberal, democratic centralism that is, the right to disperse small helm, this situation for the moment. HBRC: strong and enlightened where the boundaries? Zong: The key is you need to think more, do you want to subordinate themselves do not ask others how to do? And I think that should do something to consider each other's feelings. Must be subordinate perform it must be executed. Leaders should be concerned about, care staff. Do not be managed based on personal likes and dislikes, but should proceed from the overall interest, which is equivalent to consider the issue from the perspective of a leader in his own interests. HBRC: you say enlightened and strong mainly depends on the development stage of the enterprise, or the external environment? Zong: without the leadership of a strong nation certainly can not do things, but open-minded and very important, entrepreneurs need to care about the people, from the overall interest, care staff from the heart, to be reasonable. HBRC: In the treatment of employees, you pay greater attention to emotional factors. Be your daughter's education in the West, more emphasis on the system. You place on management conflict? Zong: she was stronger than me. If the employee made a mistake before, she directly dismissed, dismissed again I received back. She took the past are relatively excellent staff. She dismissed, I put all of them to receive back, otherwise no one went. Fortunately, she is now changing. Managers should allow people to make mistakes, especially young people. She likes to use young, but they have no experience, she sometimes only tell subordinates what to do degree, as to specifically how to do, so that employees they want. But they have no experience because sometimes go wrong, you may be doing well. HBRC: Wahaha 25 years to form a brand, you think what is the company's core values? Zong: family culture is our core value. Our family culture is divided into three areas: cohesion small home, develop and serve the country. For the staff concerned to unite small home, everyone from the staff to develop the last companies to serve the country, to form a whole. I think the core is still loyal workforce, because everything is done by people. HBRC: outside view of family culture has been mixed, how do you see? Zong: And I've never been laid off, the development has been good. Managers should first of all to ensure that employees decent life, their high income, will feel at ease and work hard. At this time management stringent, they will be able to accept. Employees also have a spiritual life. Now staff management is not the same with the past, companies to provide them with a wealth of leisure and cultural life, to solve the worries of life. So I will help them solve their housing problems, child education. Wahaha knowledge workers for one year as long as the dry, shareholders have the opportunity, and the workers for five years as long as the dry, but also have the opportunity to float, so they are both employees and owner, personal interests with hooks. Wahaha, employees will not have a career risk, as companies develop so well, they do not worry about a thing. Social media remains to be seen HBRC: Wahaha past 25 years, has maintained a strong brand position. What is the company's brand strategy? Zong: we do not pay attention to the theory, we also look at these theories. Then its inception, Wahaha brand children, then we have to follow the Wahaha brand, not the outside world that does not meet the management theory, the dispute is relatively large. But we succeeded. The world there are some big companies there is only one brand throughout many products, involving multiple industries. HBRC: What Wahaha is now the focus of media advertising? Zong: Now a lot of television, a place to receive more than 200 television stations, so even lower ad position. Like 'Chinese good voice' This column, television ratings are engaged in cosplay costumes for sale activity that is relatively high, the effect is sponsoring this program received very well. In addition, we also increased propaganda on the Internet. However, the network began its effect okay, now we find that consumers do not click on your ad, he can not see the contents, so now the way advertising messages are constantly changing. HBRC: the current prevalence of social media, Wahaha consider whether use microblogging to expand the brand influence? Zong: Wahaha think it is a low-key point better. Weibo comments as a channel is quite important and useful, I think there should be a platform to let people express their views, but do not mess, so now some micro-blog content is not credible. And the more big business, the more people like to find you trouble, including the media, they will make the point from beginning to attract attention. Therefore, for the microblogging marketing, relevant departments are still studying, and not specifically to do it. HBRC: Marketing channels have always been seen as a competitive advantage is one of Wahaha, how do you see? Zong: marketing again strong, the product itself is not good, not sell. Business success depends not only marketing, but the overall strength. World-class technology and equipment, marketing system, staff, family and culture constitute the core competitiveness of Wahaha. HBRC: Wahaha marketing channels have been maintained the original model, or to make adjustments? Zong: former four passages, now converted to three channels, we extend down. Dealer following previous Wahaha is the second installment, the second installment following is small wholesalers, then to the hands of consumers. Now I do Wholesaler this layer directly, eliminating the second installment. (Via Harvard Business Review) [Welcome Search \u0026 ldquo in the micro channel; txws_txws \u0026 rdquo; attention to our official micro-channel, 6 a day to miss the wonderful article. ]