Zong Fuli's resignation from Wahaha Group marks a significant turning point in the development of this renowned Chinese beverage giant. This is her second resignation since taking over the management of Wahaha in February 2024, and its background, causes, and subsequent impacts have attracted widespread attention in the industry. Basic Facts of the ResignationOfficial Confirmation and Timing: On October 10, 2025, Wahaha Group confirmed to the media that Zong Fuli had resigned from her positions as legal representative, director, and chairperson of the group on September 12 of the same year, and the resignation had been approved through the relevant procedures of the group's shareholders' meeting and board of directors. The news had already spread at the end of September, and it was not until October that it was officially verified.Successor Arrangement: It is reported that Xu Simin, the former legal director of Wahaha, has taken over as the group's general manager, while the position of chairperson remains vacant for the time being. According to enterprise information, Xu Simin has long been involved in the management of Wahaha-related enterprises and once served as the supervisor of Wahaha Group, and is regarded as a core member of the "Hongsheng system" trusted by Zong Fuli. Multiple Causes Behind the ResignationZong Fuli's resignation is not an isolated incident but the result of the superposition of multiple internal and external contradictions during her tenure.Intense Internal Struggles: Since taking over Wahaha, Zong Fuli has launched a drastic personnel reshuffle, with many veterans such as Wu Jianlin and Pan Jiajie leaving the board of directors, and a large number of members of the "Hongsheng system" (affiliated to the enterprise controlled by Zong Fuli herself) taking up key positions. This move has aroused strong dissatisfaction among old employees and some shareholders. In July 2024, she once submitted her resignation due to "doubts from shareholders about the rationality of operation and management", and later chose to stay on after negotiation. In addition, the transfer of employees' labor contracts to the Hongsheng system and the reduction of salary and bonus have triggered employee rights protection incidents, and related lawsuits are still pending.Trademark and Equity Disputes: The "Wahaha" trademark, as the core asset of the group, is restricted by the equity structure. According to the circulation document, the use of the trademark requires the unanimous consent of all shareholders. It is reported that Zong Fuli encountered obstacles in the process of using the trademark, which became one of the direct reasons for her decision to launch a new brand "Wa Xiaozong" and resign. At the same time, the inheritance dispute of Zong Qinghou's equity has not been completely resolved. In late September 2025, the Hong Kong High Court rejected Zong Fuli's appeal application, which not only distracted her energy but also weakened her authority in the company.Controversies over Reform and Operation: During her tenure, Zong Fuli promoted a series of radical reforms, including closing 18 branch factory production lines and eliminating distributors with annual sales of less than 3 million yuan. Although the official stated that this was a "normal market strategy optimization", it triggered protests from distributors and doubts about the stability of the sales system. In addition, the performance pressure is also one of the important factors. Under the fierce competition in the beverage market, Wahaha's market share has been challenged by competitors such as Nongfu Spring and Genki Forest, and Zong Fuli's reform has not achieved obvious results in a short time.Impact of Rumors and Public Opinion: Shortly before the resignation, Zong Fuli's "confidant" Yan Xuefeng was reported to be under investigation by the discipline inspection commission. Although the investigation was later lifted and Yan Xuefeng returned to work normally, rumors such as "Zong Fuli being investigated" spread widely, which had a negative impact on her personal reputation and the company's operation. Industry Speculation on the ResignationThe industry has different interpretations of Zong Fuli's resignation, mainly focusing on two strategic intentions:Focus on Building a New Brand: Many analysts believe that Zong Fuli's resignation is to "break away from the existing system and start a new business". She has registered the "Wa Xiaozong" trademark through Hongsheng Group and completed the certification of social media accounts. At the same time, Hongsheng Group is accelerating the expansion of production capacity by means of project bidding and new base approval. This means that Zong Fuli may abandon the reform within Wahaha and instead build a new brand to realize her business ideas. The advantage of this strategy is that it can get rid of the constraints of Wahaha's old system and shareholders, but the risk is that "Wa Xiaozong" needs to face the double tests of consumer recognition and channel construction. At present, some netizens have expressed their inability to accept the new brand, and dealers are also worried about the market risk of the new brand.Tactical Retreat for Strategic Advancement: Another view holds that Zong Fuli's resignation is a "tactical retreat". By temporarily stepping down from the management position of Wahaha, she can reduce the resistance to reform and avoid the risk of personal reputation being affected by internal contradictions. Once the internal situation of Wahaha stabilizes or the conditions for trademark use are met, she may return to the core management. This kind of "retreat to advance" strategy has precedents in the business world, but it requires precise control of the timing and internal and external environment. Impact on Wahaha and the IndustryUncertainty in Wahaha's Operation: With the vacancy of the chairperson's position and the instability of the management team, Wahaha may face the risk of slowing down its decision-making efficiency and unclear strategic direction. The "Hongsheng system" represented by Xu Simin may continue to promote the reform initiated by Zong Fuli, but it is still unknown whether it can gain the support of shareholders and employees. In addition, the channel reform and dealer optimization launched before may be adjusted, which will affect the stability of the terminal market.Shuffling of the Beverage Market Pattern: If Zong Fuli concentrates on operating "Wa Xiaozong", it may form a competitive relationship with Wahaha. As a new brand, "Wa Xiaozong" may rely on the resources and channel experience of the Hongsheng system to seize the market, but it will also face fierce competition from established brands such as Nongfu Spring and emerging brands such as Genki Forest. For Wahaha, the loss of the core leader may make it more conservative in product innovation and market expansion, and its market share may be further eroded by competitors.Enlightenment for Family Enterprise Inheritance: Zong Fuli's experience of "taking over and resigning twice" has become a typical case of family enterprise inheritance in China. It reflects the common problems faced by the second generation of family enterprises in the process of taking over, such as conflicts between old and new management concepts, equity disputes, and difficulties in breaking through the existing system. This incident also reminds other family enterprises to pay more attention to the construction of the successor training mechanism, equity structure optimization, and internal coordination mechanism when carrying out the inheritance of power.In general, Zong Fuli's resignation from Wahaha is not the end of the dispute, but may be the beginning of a new round of changes in the enterprise and the market. Whether "Wa Xiaozong" can become a new business card of Zong Fuli, and how Wahaha will get out of the predicament and achieve stable development, remains to be observed in the subsequent market practice.
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