In March 2024, China's beverage giant Nongfu Spring faced unprecedented challenges. The company's founder, Zhong Sui, appeared on the hot search due to a series of controversial events, and Nongfu Spring's sales also declined significantly. Experts believe that despite the current grim situation, it is expected that the sales of Nongfu Spring will gradually recover after June.
Zhong, a three-time business magnate who has become China's richest man, was pushed to the forefront because of his feud with the late beverage industry colleague Zong Qinghou. At the memorial service for Zong Qinghou, the wreath sent by Zhong was regarded as an insincere act, which sparked widespread discussion and questioning among the public. The remarks circulating on the Internet about "the farmer and the snake" and "never buy Nongfu Spring again" have seriously affected the reputation of Zhong and his company, Nongfu Spring.
According to reports, Nongfu Spring's official *** sales exceeded 90% in just five days. From a one-day sales of more than 1 million yuan on February 27 to a one-day sales of only 50,000 yuan on March 3, this change reflects a sharp decline in consumers' trust in the Nongfu Spring brand.
Among the many supermarkets in Beijing, Nongfu Spring's products stand in stark contrast to those of rival Wahaha. In a Wumart hypermarket, Wahaha's drinking mineral water shelves were quickly **, while Nongfu Spring's products were deserted.
In the face of pressure, Zhong issued a statement in an attempt to clarify the facts and respond to public doubts. He denied that he had started his business through improper means, and stressed that his first pot of gold came from the cloth business in Hainan, not Wahaha. He also mentioned that he had never received a salary in Wahaha, let alone been fired for cross-selling. Chung's response, although detailed, did not completely quell the public's skepticism.
Zhu Danpeng, a food industry analyst, said that although Nongfu Spring is currently facing difficulties, consumer sentiment will gradually calm down over time, and Nongfu Spring's sales are also expected to gradually recover after June. He pointed out that Nongfu Spring needs to adopt a more effective PR strategy to rebuild consumer trust and restore the brand image through aggressive marketing actions.
Overall, the incident between Zhong and Nongfu Spring is a case study of the relationship between an entrepreneur's personal reputation and a corporate brand. Under the influence of the public**, an entrepreneur's personal actions can have a profound impact on his or her business. For Nongfu Spring, how to restore consumer trust in the midst of this crisis will be the biggest challenge it faces.