---
title: "After Being Scammed in Its Listing Attempt, Why Wahaha Chose This as Its Next Move"
description: "Zong Fuli, daughter of Wahaha's founder, has faced public ridicule over her failed attempts to take the company public and launch high-end products. However, these moves reflect Wahaha's need for change, and its recent focus on selenium-rich water may be a strategic step to revitalize the brand and enter the high-end water market."
author: "老纳"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2017-07-24"
language: "en"
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---

# After Being Scammed in Its Listing Attempt, Why Wahaha Chose This as Its Next Move

> Zong Fuli, daughter of Wahaha's founder, has faced public ridicule over her failed attempts to take the company public and launch high-end products. However, these moves reflect Wahaha's need for change, and its recent focus on selenium-rich water may be a strategic step to revitalize the brand and enter the high-end water market.

What you care about is what you lack.

**Zong Fuli Under Public Scrutiny**
In recent days, Zong Fuli has become the target of public ridicule. She probably isn't surprised, given that as Zong Qinghou's daughter, every word and action is scrutinized under a magnifying glass.

Moreover, over the years, the "Miss Zong" persona has been one of independence, assertiveness, and courage—under her father's wing, yet with different ideas from the boss. Rumors have circulated that Zong Fuli, uncomfortable with Chinese interpersonal dynamics, wanted to move Wahaha's headquarters abroad. Zong Qinghou wanted her to study international trade, but she was more interested in fashion design, leading to the establishment of Wahaha's WAOW Plaza, which eventually closed.

Old Zong has always adhered to the principle that Wahaha should not go public. However, Zong Fuli sought a backdoor listing in Hong Kong, only to be scammed by the "China Candy" shell company. Although Wahaha suffered no substantial losses, it further fueled doubts about Miss Zong's capabilities.

Especially recently, Zong Fuli planned to launch a high-end beverage, a fruit and vegetable juice named after herself, KellyOne, priced around 48 yuan. This gave the industry a sense of narcissism and arrogance.

In reality, these actions are not merely displays of willfulness but reflect her pursuit of change based on Wahaha's current situation and existing problems. Often, she cannot act under Zong Qinghou's identity, as his every move has too significant an impact on society. Using her role as a "rebellious rich second generation" is more appropriate.

First, Wahaha has long suffered from being too large to manage effectively, with personal connections outweighing institutional management. Many relatives of government officials or employees have nearly crushed the company. Any institutional change, if initiated by Zong Qinghou, would alter the foundation, causing the group to move in uncertainty, especially as the FMCG winter was approaching.

Second, WAOW Plaza was established in 2012 when the FMCG sector was still experiencing false prosperity, but a crisis was looming, though outsiders didn't feel the pain. Wahaha needed diversified development and new projects, hence WAOW Plaza. However, the decline of physical department stores was even faster than that of FMCG.

Third, regarding listing, Old Zong's principle was not to go public to avoid losing control. But times have changed; Wahaha is no longer as glorious as before and needs money. Yet, after the battle with Danone, investment firms perceive Wahaha as having too many uncontrollable factors. International giants dare not and do not want to get involved. Wahaha needs to go public more than ever, and a backdoor listing is undoubtedly the fastest way. After all, Xiangpiaopiao took four years and three attempts to successfully IPO, while Liuge Henan still has no news. Similarly, after SF Express's backdoor listing, Wang Wei dared to compete with Ma Yun. Backdoor listing is the best option with low risk and quick results. Even if it fails, Wahaha wouldn't suffer much.

Finally, brand aging and being synonymous with children's drinks are other issues. Wahaha needs a new image and new brand packaging, especially in the juice era. It needs a KellyOne to represent its breakthrough direction—moving toward high-end brands to shed old problems. It's just that this step is a bit fast, and many people haven't adapted yet.

So whether you call Miss Zong willful or a failure, for Wahaha, they need someone with her personality. Trying may lead to failure, but not trying means death.

**Investigating Selenium Water**
Zong Fuli pointed out Wahaha's shortcomings. In recent years, Wahaha has tried to develop high-end products, but overall results have been unsatisfactory; each product was fleeting, and the only consistently growing segment has been high-end bottled water.

Wahaha has also made efforts in high-end water. It launched oxygen-rich water at a relatively affordable price, but it didn't perform well. After that failure, Wahaha's bottled water efforts have been minor. It launched Crystal Diamond Water, which allows consumers to write their names on the packaging—another case of turning grassroots creative drafts into actual packaging. But consumers still care about the direct experience water provides, not these trivial innovations.

After the failed acquisition and listing, with a wide price gap between high-end and low-end products, and a sluggish beverage market overall, Wahaha needs to find a unique water source to open the high-end water market and provide consumers with a substantive experience. That is selenium water.

Recently, Gu Xiaohong, Director of Wahaha's Foreign Economic and Trade Office, visited Enshi to inspect selenium-rich water sources and find a suitable location for development. Enshi Prefecture has nearly 70% forest coverage and is known as the "Forest Sea of Western Hubei," "Chinese Medicine Repository," "Kingdom of Tobacco," and "World Selenium Capital."

Selenium Capital: the world's largest independent selenium deposit. Compared to the Changbai Mountain water source (where over 80% of Chinese water companies have or are seeking sources), Enshi has higher greenery, richer water resources, and more convenient transportation. What Changbai Mountain lacks is that Enshi's water is rich in selenium—the world's longevity element, which helps prevent cancer and control blood sugar, making it the biggest nemesis of modern epidemics.

Additionally, the Miao ethnic group's mysterious aura adds a magical flavor to Enshi's selenium. Enshi is located in Hubei, reducing distribution costs to all parts of the country.

Natural selenium-containing water is weakly alkaline, which is already a selling point of mainstream water sources. Selenium also offers health benefits that other sources lack, such as cancer prevention and diabetes control. While people accept increasingly expensive water, they also need additional selling points beyond quenching thirst. Clearly, health appeals are stronger than sparkling waters like Perrier or VOSS. Compared to Perrier (330ml, 13.8 yuan) and VOSS (375ml, 24.8 yuan), selenium water is currently priced at 380ml for 13 yuan, offering a price advantage.

**Selenium Water Market**
Will selenium water be the next trend? In FMCG beverages, there aren't that many trends. Many trends need to be created and grasped by companies themselves. Moreover, Wahaha has shown insufficient patience in launching new products in recent years. How much patience it will have this time remains unknown.

But for the selenium water market, having a star company like Wahaha enter—especially after Zong Fuli's failed listing and Wahaha's urgent need for a star product to boost morale—is significant. At this moment, Wahaha has chosen the selenium water market, aiming to make a mark in high-end water and also give its old rival Nongfu Spring a new stimulus.

Regardless of how Wahaha's selenium water market develops, it will greatly help companies already in this market. Wahaha is a major IP with built-in traffic. Just as when Wahaha launched Kvass, Qiulin Kvass sales jumped from 300 million to 700 million yuan. Although Qiulin Kvass no longer reaches 700 million, sales are still around 400 million. That's the power of traffic.

Clearly, Qiulin Kvass distributors made a good profit during that wave. Similarly, for companies in the selenium water market, they have already prepared the market and are waiting for such a traffic star to open it up.

This is undoubtedly the biggest beneficiary for Shaanxi Selenium Valley Industrial Development Co., Ltd.'s Hanshui Selenium Valley True Selenium Water.

Although Shaanxi Selenium Valley Industrial Development Co., Ltd. is a subsidiary of Shaanxi Coal Group, with strong strength and an excellent marketing team, their promotional capabilities are far behind traditional FMCG companies like Wahaha. Wahaha's inherent traffic attributes, especially Old Zong's fame in the FMCG circle, are something Shaanxi Selenium Valley lacks.

Despite lacking traffic attributes and recognition, their Hanshui Selenium Valley True Selenium Water is undoubtedly a top-quality product.

With a 7,500-year formation history, a water source belt at 32°N latitude, the mysterious Qinling Mountains, and Taoist heritage, these elements create a story for the water source.

Since 2010, Shaanxi Selenium Valley Industrial Development Co., Ltd. has been laying out the market for Hanshui Selenium Valley True Selenium Water. They hired many FMCG professionals with extensive market experience, sharpening their strategy for seven years to establish a solid selenium water market.

In recent years, Hanshui Selenium Valley True Selenium Water has mainly sponsored various conferences, planting seeds of health and high-end in the minds of opinion leaders, and gained fame at this year's Spring Sugar and Wine Fair.

Now, with Wahaha's development of the selenium water market, Hanshui Selenium Valley True Selenium Water is truly riding the wave.

**Distribution Recruitment**
Guo Ming
Sales Director
**Email:** 30883003@qq.com
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