China Food

Zhong’s 40 thoughts explain why he can become the richest man in China?

Zhong summarized his business experience: “if a small enterprise wants to develop and grow, the type of operation must be unique and profiteering”. This pursuit of “category uniqueness” is also reflected in his product logic: to make a product, you must carry a category before you can be considered a real success.
Not long ago, the chairman of Forbes, who was the richest man in the world with a net worth of US $46.67 billion, was released.
Many people may wonder how a water seller can surpass a group of entrepreneurs engaged in Internet and emerging industries and become the richest man?
In fact, Zhong holds two wealth passwords.
The first is packaged drinking water, which comes from nongnongshan spring, his listed company.
Nongnongshan spring, founded in 1997, mainly produces packaged drinking water. In 2000, nongnongshan spring created the category of “natural water” in China, claiming to stop the “pure water” produced in the industry and only produce “natural water”. Soon, nongnongshan spring developed into the leader of the domestic packaged water market. From 2012 to 2020, nongnongshan spring maintained the first market share of packaged drinking water in China for nine consecutive years. In addition, the market share of nongnongshan spring in tea drinks, functional drinks and fruit juice drinks has also been among the top three in the domestic market for a long time.
Compared with other kinds of drinks, packaged drinking water seems ordinary, but it is a profitable business. Among soft drinks, the gross profit margin of packaged drinking water is the highest, and it is just needed, and the growth prospect is the best. After comparing the financial reports of beverage enterprises in the first half of 2021, some media found that the gross profit margin of nongnongshanquan was as high as 60%, second only to 73.26% of China’s flying crane.
In 2021, the total revenue of nongnongshan spring reached 29.696 billion yuan, and the net profit reached 7.162 billion yuan, an increase of 35.7% year-on-year. Among them, packaged drinking water is the largest business, with a revenue of 17 billion yuan.
As of April 2022, the share price of nongnongshan spring has doubled since its listing, with a market value of more than HK $470 billion.
The second is the vaccine, mainly from Wantai biology, a listed company controlled by the company.
Wantai biology is a company engaged in the R & D and production of biological diagnostic reagents and vaccines. It is also the first manufacturer of HPV (cervical cancer) vaccine in China. In 2001, Zhong Fuying acquired 95% of the shares of Wantai biology and became the actual controller. In 2021, Wantai biology launched bivalent HPV vaccine, with sales of more than 3 billion yuan and gross profit margin of 92%. Today, in the bivalent HPV vaccine market, Wantai biology has a market share of more than 85%, occupying an absolute advantage. In addition to the bivalent HPV vaccine, Wantai biology has also arranged the nine valent HPV vaccine and obtained the clinical approval in 2017. At present, its R & D progress has entered the phase III clinical trial and is expected to be approved for listing by the end of 2024 or early 2025.
At present, the number of female population aged 9-45 in China is about 381 million, while the penetration rate of HPV vaccination among school-age women is only about 7%, and the market gap is huge. Under such a market background, since its listing in 2020, the share price of Wantai biology has soared from the issue price of 8.75 yuan / share to 274.7 yuan / share on April 9, 2022, up 31 times, with a market value of 166.8 billion yuan.
Although the business relationship between packaged drinking water and vaccines is small, they all belong to health-related production business, and health has always been Zhong’s entrepreneurial direction. His earliest company (1993) was Yangshengtang, which was engaged in selling health products such as fish and turtle pills. Now it has more than 100 companies, covering food and beverage, biological vaccine, health products, cosmetics and other fields.
In the past 30 years, Zhong summarized his business experience, “if a small enterprise wants to develop and grow, the type it operates must be unique and profiteering”.
From this perspective, packaged drinking water and vaccines are in line with his wealth logic: nongnongshan spring is equivalent to selling “tea eggs”, with high-frequency rigid demand, low cost and high profit; Wantai biology is equivalent to building an “atomic bomb”. In the early stage, it needs high investment to carry out technology research and development, but once the vaccine is listed, it can make huge profits and make no loss.
This pursuit of “category uniqueness” is also reflected in his product logic: to make a product, you must carry a category before you can be considered a real success.
For more than 20 years since operating nongnongshan spring, Zhong has invested in scientific research and technology to make products. He has launched products that have maintained brand vitality for more than 10 years, such as nongnong orchard, Oriental leaves, tea π, water-soluble C100, and almost every explosive product occupies a subdivision field. Taking Oriental leaves as an example, with a variety of oxygen control technologies, the tea soup of Oriental leaves can be stored for several months without changing the original quality, and has created a new tea drinking standard of “0 sugar, 0 fat, 0 calorie, 0 essence and 0 preservative”. Therefore, Zhong is known as the rare “super product manager” in the field of consumer goods in China.
From: Inspur new business
Zhong’s success in creating products has won the continuous attention of his peers in the industry. Zong Fuli, vice chairman of Wahaha, said that the favorite beverage brand is nongnongshan spring. Luo Zhixian, general manager of uni President Group, also revealed that he has paid long-term attention to nongnongshan spring.
Zhong is a low-key person and rarely gives public interviews. He is called “lone wolf” by the media, which means that he “likes to compete, challenge the harsh environment like a wolf and dominate his own destiny”. He made no secret of his pride and conceit: “I am a loner. I don’t care what my colleagues are doing or thinking.”. He said he only worshipped two people, one was Steve Jobs of apple and the other was Ren Zhengfei of Huawei.
The ancients said that a gentleman should be cautious about his independence. People who like to be alone are often more self demanding. This paper combs Zhong’s views on enterprise management, the upgrading and transformation of traditional enterprises, the impact of the Internet on enterprises, entrepreneur responsibility and so on, so as to more intuitively show his “lone wolf” side.
about enterprise operation
1. If a small enterprise wants to develop and grow, the type of operation must be unique and profiteering, because there is no scale effect for you to accumulate slowly.
2. What we want to produce is not only tangible products, but also intangible knowledge. There must be a positive correlation between the generation speed of knowledge, the gathering speed of talents and the degree of product innovation.
3. Nongnongshan spring is an out and out traditional enterprise. A traditional enterprise is an enterprise that sustains the needs of people’s lives by reflecting on and precipitating all kinds of knowledge, processes, standards, traditions and methods in the process of making mistakes in the past ten, twenty, or even hundreds of years.
4. We believe that for all products, no one knows what kind of legal provisions are more reasonable than manufacturers and producers. Which expert in China said that there was the accumulation of knowledge of Nongfu mountain spring? If there is today (2015), I will stand up and debate with this expert anytime and anywhere. I challenge all experts.
5. The current situation in the drinking water industry is that bad money expels good money. Some interest groups use urban tap water to produce purified water. The biggest advantage is low cost.
6. Many people call products commodities. Commodities and products are two things. Products contain research results, painstaking efforts, accumulation of years, science and technology. Commodities are different. Commodities are the price and the trading relationship in shopping malls. Because if an enterprise does not express its contribution to the society through products, what should the enterprise do?
7. we (Oriental leaves) have been able to achieve five zeros long ago (0 sugar, 0 calorie, 0 fat, 0 essence and 0 preservative). Can you do it? Our problem is that the awareness of health quality is too advanced (Dongfang leaf was listed in 2011).
8. (when the 17.5 ° orange was released in 2016) in a few years, if anyone said he could make better orange juice than me, I didn’t even look at him.
9. We have to tell consumers what we are doing. We spend time studying. We seriously make every product. The product is our honor. The product carries our emotions and the product carries Mrs. Nong’s conscience.
10. I will not require scientific research projects to have clear commercial output objectives. If researchers think about business and market returns all day, the spirit of innovation will change. Explore and understand the future with innovative spirit, which is what we need to do.
11. We don’t use data to make decisions. When you see the data, it’s past tense. You’ll never catch up. If you use data to make decisions, it is only a second-class enterprise and second-class investment at most. You must have a sense of advance. Our company buys some data to prove that our investment is right. It is only used for verification. We don’t need data to make decisions.
12. I think it is normal and indisputable that the national industry supervision department lags behind the research ability of enterprises, because science and technology always develops ahead, and the research will not be modified until there are standards at a certain time.
13. Advertising itself is a long-term reflection on products. Advertising is not out of your mind. You must have your idea from the beginning of manufacturing products before you can create a good advertisement. This is why the products and advertisements of nongnongshanquan are connected. The gene has been there since the beginning of the product, and the life of the product has been in the blood. This is our culture.
14. I hope any enterprise or entrepreneur can accumulate knowledge first. If you find that your accumulated knowledge is a problem that mankind has not solved yet, I believe you can succeed. Human creation starts from a point and gradually becomes a circle, because many people continue to draw on it and become a circle. To break a circle, you must draw an ellipse on the circle. When you draw an ellipse, it is innovation. Human progress is such a process of continuous innovation. The cost and resistance of innovation is itself. Innovation requires two things: money and time. There is no time to accumulate classics.
15. The competitor of nongnongshan spring has always been an international brand. What we want to compete is the competition in the field of water research. Whether there is an additional brand on the shelf is competition. Such competition is not called competition for nongnongshan spring.
16. Real estate people came in to make water. How’s it going? Any industry needs the accumulation of knowledge. If money alone can enter a new industry and transform, that’s nonsense. With money alone, banks can rule all industries. Throwing money is foolishness.

about the upgrading and transformation of traditional enterprises

17. Our traditional enterprises cannot compete with others in the fast lane. We should compete with our own personality and uniqueness in the slow lane.
18. Now, from the division of labor to the division of knowledge, the proportion of knowledge owned by a single individual and a single enterprise in the total amount of human knowledge base is becoming smaller and smaller. It is very necessary for traditional enterprises to prepare new knowledge systems. It is not the only difficult thing for enterprises to upgrade, but it is also the traditional way to upgrade.
19. Traditional enterprises should take big data and artificial intelligence as a tool to accelerate their knowledge process, strengthen their knowledge strength, and explore unique new knowledge that belongs to you and is unknown to others in their respective fields. Let knowledge become your real core competitiveness.
20. Most traditional enterprises are small-scale and heavily taxed. They are the lowest end enterprises in society. In China’s current (2017) market environment, traditional enterprises have not been treated fairly by the government in the market competition of the law of the jungle, and have been ruthlessly squeezed by financial enterprises, real estate enterprises and Internet e-commerce enterprises for a long time. Traditional enterprises and high-tech Internet enterprises have been in an unfair competitive environment for a long time. In the environment of public opinion, traditional enterprises are like silent lambs.
21. The first step in upgrading is the upgrading of ideas. Upgrading is an internal concept evolution. The concept evolution needs new compound knowledge to support. Different products and brands have different ways of upgrading, but one is the same, that is, the concept upgrading. The way out for traditional enterprises lies in their own learning ability. The Internet is just a tool.
22. The lack of brand power is a common problem of domestic products, and upgrading is imminent. Domestic brands have only met people’s physical needs for a long time, and have not evolved the brand to the level of story and emotion.
23. Over the past decade, most “smart” entrepreneurs have entered the real estate field because of their fast money and low risk. Those who silently study products and develop technology are “stupid” and “poor”. To be honest, real estate is a game of power and capital. It has no technical value. Building a one kilometer high building is not as meaningful as making a toilet cover.
24. Compared with transformation, China’s most urgent task is to upgrade. The upgrading of technology, management, brand, production and logistics is the core link. The slogan of mass entrepreneurship and innovation echoes the need for upgrading. Unfortunately, we rush into the Internet field to start a gambling business.
about the Internet, big data and artificial intelligence
25. The Internet is a tool that all enterprises have the right to use, not thinking. Internet thinking is something that doesn’t exist at all. Thinking is a kind of ability that is unique to human beings and coexists with life.
26. Traditional enterprises should learn to make their own voice. They should not let the big players on the Internet control the direction of public opinion. Your brand is your voice and your history is your best story.
27. Traditional enterprises should straighten out their mentality. The Internet can be used, but can not be controlled. We are the cornerstone of all development. We should firmly grasp the right to speak and the initiative.
28. traditional enterprises should be sober. Just selling their products on Taobao or does not mean your Internet +. The Internet + of traditional enterprises is their own Internet. How to use the Internet to improve efficiency, improve technology and stimulate innovation is the focus of enterprises to explore for a long time.
29. The Internet has not made the world a better place. There is still a lot of chaos in taking a taxi online, there is still a problem of food safety in lunch takeout, and Taobao fake goods are still rampant in the market. The transformation and upgrading of enterprises cannot completely rely on the Internet. In a sense, the Internet strategy is a “great leap forward”. China is a super large country. How can it dominate the world by relying on one Internet?
30. The Internet is not the whole of our economic development. We take it too seriously.
31. The Internet is the product of the era, the darling of this era, and may also be the outcast of the next era. In fact, it is no different from the stone tools used by mountaintop cave people in primitive society. When this tool is handy, make good use of it, always be sensitive and wait for the next more favorable tool. In the final analysis, the so-called maintaining the original intention and craftsmanship spirit is to return to production and people, and talent is the master.
32. The Internet is always just icing on the cake for traditional enterprises. Technology is developing. When the next tool comes, you are still strong, and the Internet enterprises that were at the peak of the day may collapse in an instant.
33. Artificial intelligence and big data are not the patents of Internet enterprises. They are just the equipment, tools, intelligence and statistical means of an enterprise.
34. It is true that human beings are inferior to computers in storage and memory, but alpha dogs are a kind of complete rationality, a kind of rationality in the static rules set by human beings, but rationality is not the whole of human progress. The complexity and creativity of the human brain are unpredictable and should not force everyone to develop in one direction. The direction of human progress is unknown in most states.
35. Big data and artificial intelligence are only one of the important steps in the process of human progress. In the process of human progress, more originality comes from accidental discovery, deduces laws from accidents, and uses laws to promote world progress. Big data and artificial intelligence deduce data from data, and human wisdom lies in that human beings still play a key role in selecting, judging, storing and processing data.
about entrepreneurs and their responsibilities
36. Entrepreneurs who really sink down to study don’t want to say more. Ren Zhengfei never said it. Why didn’t he say it? It’s not that he doesn’t want to say it, because it’s often misunderstood. What you report is not what you say, because you don’t understand. It’s not that I don’t want to interview, it’s because I’m afraid of being misinterpreted. I hope to have the opportunity to light up my view to my consumers and everyone.
37. I’ve been excited too, but why didn’t I do real estate? I don’t have the habit of flattery. I don’t like dealing with people. I don’t like drinking, so I can’t do real estate.
38. I have suffered losses since the first day of making water. All our things are basically in the right direction, but there are also many mistakes, because there are always places that knowledge can’t reach and defects. Including the end of 2013, a domestic newspaper said that there were screws in the bottle of nongnongshan spring. How is it possible? Where did the last screw come from? They put it in a prank. We are full of hardships in this process.
39. If you want to take a road that others have not taken, you can’t be wronged.
40. What are the responsibilities of Chinese entrepreneurs? We should create products and tell our society, our cognition and our ideal through our products. We should calm down and study products, competition and technology conscientiously. Now people who study products are almost poor. Because of our industrial orientation, in the first decade (2005-2015), basically 90% of entrepreneurs went to real estate. Quick money makes easy money.
reference material:
[1] A shot of HPV vaccine helped him earn 455 billion, and the market
[2] Zhong Fuying, the richest man in China who sells bottles, is in the market
[3] Nongfu Shanquan, chairman of the board of directors, Zhong Huixuan: its disease is like the wind, its Xu Rulin, economic daily
[4] Zhong’s latest speech: teach the growth secret of nongnongshan spring of RMB 15 billion [2017], Qianjiang Evening News
[5] Zhong: the Internet is just a tool. How can China beat the world by relying on it alone?  
[6] Zhong Shuo said: the son must succeed by his ability, or he will be a shareholder, a figure in the food industry and a food businessman
[7] 2016 (9th) China cosmetics conference,
[8] On the first anniversary of nongnongshanquan’s listing, Zhong Huixuan returned to China’s richest man and made a new consumption wave
[9] In 2022, the Forbes billionaire list was released, and nongnong Shanquan Zhong Zhuo topped China’s richest man!
[10] “Lone wolf” Zhong Fuying, Phoenix Finance
[11] Behind the popularity of “Oriental leaves”, Zhang Hefei is the “scientific research corps” of Nongfu mountain spring
Author: Tian Shanshan; Editor: ordinary; Source: Lishi Business Review (ID: LiBusiness), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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