On February 25, Zong Qinghou, the founder of Wahaha Group, died of illness at the age of 79. His death triggered the mourning and respect of people across the country, and also triggered a beverage market.
According to ** reports, after the death of Zong Qinghou, Wahaha's official store sales increased by more than 500% in two days, of which AD calcium milk became the sales champion, with more than 1 million new fans.
Many consumers said that they bought Wahaha products to commemorate the founder of the national brand, and also to support this state-owned + employee-owned enterprise.
At the same time, Nongfu Spring has encountered unprecedented challenges.
After the death of Zong Qinghou, the founder of Nongfu Spring, Zhong Sui, issued a brief condolence speech: "Zong Lao, go all the way!" ”。
This remark sparked a strong reaction from netizens, who thought that Zhong was hypocritical, shameless, and insincere, and even provoked Zong Qinghou's widow and daughter.
Why is there such a contrast? To answer this question, we have to start from scratch between the two.
Both are leaders in China's beverage industry and the first generation of private entrepreneurs after the reform and opening up. Their competition can be traced back to the 90s of the last century, when Wahaha and Nongfu Spring were competing for market share with bottled water as their main products.
In the early 80s of the last century, Zong Qinghou resolutely resigned from public office and began his own entrepreneurial road. In the most difficult times, he once squeezed the subway and slept in the park, but he never gave up the pursuit of success.
Through unremitting efforts and keen market insight, Zong Qinghou has created a series of best-selling products such as Wahaha Red Bull and AD Calcium Milk, making Wahaha Group a leading enterprise in China's beverage industry.
Not to be outdone, Zhong is constantly looking for high-quality water sources and improving product quality, which has also won the favor of many consumers.
In 2010, Zhong Sui explored a glacier water source at an altitude of more than 5,000 meters in the ** Autonomous Region, and the water quality reached the highest international standards, which he named "Natural Oxygen Bar", and launched Nongfu Spring Natural Oxygen Bar series products, which is China's first drinking water brand with plateau glacier water as raw material.
Five years later, Zhong discovered a deep source of water in Hainan Province, rich in minerals and trace elements, which he named "Ocean Water" and launched the Nongfu Spring Ocean Water series, the first drinking water brand in China to use ocean water as a raw material.
But it's really good that peers are enemies, and that's right. The competition between the two companies is everywhere.
In 2000, Wahaha formed an alliance with six large purified water companies, including Shanghai Zhengguanghe and Robust, to jointly launch an accusation against Nongfu Spring.
As a leading figure in the pure water industry at the time, Zong Qinghou led Wahaha to file a lawsuit with the Hangzhou Municipal District Court, accusing Yangshengtang Drinking Water Company (Nongfu Spring's parent company) of unfair competition. The conflict between the two sides intensified, culminating in 8 June 2000.
On this day, Wahaha chose the West Lake State Guesthouse as the venue for the press conference during the day, while Nongfu Spring chose to hold its own press conference in the evening at the same location, forming a subtle confrontation 123.
In 2015, there was a fierce advertising competition between Wahaha and Nongfu Spring. Wahaha launched a series of advertisements comparing its products directly to Nongfu Spring and claiming that its products are purer and more nutritious.
Nongfu Spring responded strongly and launched a counterattack, accusing Wahaha's ad of false propaganda and taking it to court. This incident attracted widespread attention and became a hot topic in the beverage industry at that time.
In 2016, Nongfu Spring launched Tea as an innovative product, which quickly emerged in the market with its unique brand positioning and marketing strategy. Tea targeted the new generation, invited a number of celebrities to endorse it, paved the positive attitude with a warm narrative, instantly let the brand enter the hearts of users, instigated the hearts of fans with a bottle of drink, and verified the power of fan economy with an advertisement.
The success of tea also confirms Nongfu Spring's innovation and keen market observation, and at the same time, it has also had a certain impact on Wahaha's market share.
In the same year, Nongfu Spring filed a trademark infringement complaint against Wahaha, alleging that the packaging design of one of Wahaha's beverage products was similar to its trademark and that there was infringement.
Wahaha denied the accusation and filed a countersuit accusing Nongfu Spring of unfair competition. The lawsuit has been a long tug-of-war in court and has become a hot topic in the industry.
After the death of Zong Qinghou, Wahaha's sales skyrocketed for a while, and Nongfu Spring encountered a challenging situation.
This situation, for Wahaha, is a mixture of joy and sorrow. On the one hand, the death of Zong Qinghou made Wahaha lose a great leader, and it also made Wahaha face the problem of being the best person.
The death of Zong Qinghou gave Wahaha a sense of national feelings, and also allowed Wahaha to regain the opportunity to regain the market. It remains to be seen whether Wahaha can seize this opportunity to achieve transformation and innovation, and continue to maintain its status as a national brand.
For Nongfu Spring, this is a test of crisis and challenge.
Nongfu Spring's product quality and brand influence still have advantages that cannot be ignored, and it also has many loyal consumers. Nongfu Spring's public relations ability and sense of social responsibility have been widely questioned and criticized, which has also made Nongfu Spring face market resistance and competitive pressure.
Whether Nongfu Spring can resolve this crisis and rebuild its image and trust remains to be improved.
In this era, consumers not only pay attention to the function and value of the product, but also pay attention to the brand and value of the product. Consumers are not only buyers, but also participants, and they will express their attitudes and positions with their own choices and behaviors.
Therefore, Wahaha and Nongfu Spring should not only do a good job in their own products and services, but also do a good job in their own brand and value.
The fate of Wahaha and Nongfu Spring may be a coincidence, or it may be an inevitability. But in any case, they should learn from it, reflect on their strengths and weaknesses, adjust their strategies and directions, and meet new challenges and opportunities.
They should all keep in mind that their competitors are not only with each other, but also with other beverage companies, and even other industries and fields. They should all understand that their goal is not only to make money, but also to create value and contribute to consumers, employees, society and the country.
After Zong Qinghou died, the story of Wahaha and Nongfu Spring has not ended.
There are still many possibilities for the future of these two companies. We look forward to them continuing to move forward, continue to innovate, keep progressing, and continue to develop, and write a new chapter for China's beverage industry and China's national brand.
**10,000 Fans Incentive Plan