Will Zhong Shanshan listen to Zhou Hongyi's advice?

11/28 2024 361

Written by: Dou Wenxue

Edited by: Ziye

Zhong Shanshan is "killing it".

Recently, Zhong Shanshan, the founder of Nongfu Spring, made a series of "full-force" responses to public opinion since this year during an event appearance.

He not only called on Zhang Yiming, the founder of ByteDance, to apologize to him but also "blasted" Pinduoduo. Regarding the view on live streaming sales, he also made astonishing remarks, saying that he looked down on entrepreneurs engaging in live streaming sales and that he would never do it himself.

He even expressed "disdain" for his company's own purified water products, stating that Nongfu Spring only produces one specification, one SKU, and will be very restrained. He also reminded consumers, "You can temporarily buy one or two bottles when you are thirsty, but long-term consumption is definitely problematic."

Image source: Nongfu Spring's official Weibo

These remarks have stirred up a wave of controversy.

The incident originated from some online discussions about Zhong Shanshan and Nongfu Spring that emerged after the passing of Zong Qinghou, the founder of Wahaha, at the end of February this year, which had a huge impact on Zhong Shanshan and Nongfu Spring.

However, with Zhong Shanshan's latest series of highly targeted remarks, he and Nongfu Spring have once again been thrust into the spotlight.

Since many entrepreneurs can be matched with these remarks, coupled with Zhong Shanshan's many contradictory statements, it seems more like a "venting session" by Zhong Shanshan, with more controversy arising than support.

Today, Nongfu Spring re-released a rumor debunking statement previously issued on May 20, clarifying twenty rumors such as "Zhong Shanshan is a Wahaha dealer and engaged in product diversion, Zhong Shanshan was fired by Wahaha," "Zhong Shanshan founded Nongfu Spring to retaliate against Wahaha," and "Nongfu Spring's bottle material is inferior and materials are skimped on."

Nongfu Spring hopes that the platform will take the initiative to stop the spread of rumors, echoing Zhong Shanshan's recent statements.

The entrepreneurs called out by Zhong Shanshan have not yet responded, but Zhou Hongyi, the founder of 360 Group, has successively updated three videos responding to some of Zhong Shanshan's remarks.

He first acknowledged some of Zhong Shanshan's viewpoints and then explained them based on his own understanding. He also made suggestions to Zhong Shanshan, hoping that he could also build a personal IP, establish his own fan base, and gain a voice in the internet.

However, it is likely difficult for Zhong Shanshan, who has always been adept at "developing through struggle," to easily change his style.

1. Are sharp and high-profile statements suitable for entrepreneurs of this era?

Zhong Shanshan's response seems to carry a momentum of "tearing into" a circle of entrepreneurs.

First, the clearest statement was directed at Zhang Yiming, the founder of ByteDance.

Zhong Shanshan believes that the public opinion uproar in March this year was due to someone exploiting algorithms. Algorithms are not thought up by ordinary people but by knowledgeable and educated individuals. Those who constantly scold Zhong Shanshan online are victims just like him.

He called on Toutiao and Douyin not to use the so-called safe harbor principle to prevaricate on the spread of rumors and out-of-context reports. Instead, they should immediately delete relevant comments and images and stop infringing upon a Chinese citizen.

He also hopes to receive an apology, stating, "I personally hope that Mr. Zhang Yiming, Douyin, Toutiao, and other media and self-media that have caused harm will sincerely apologize to me. I am waiting for your apologies."

Zhong Shanshan directed his criticism at algorithms. However, objectively speaking, in the current creative era, algorithms allow more creators to be seen. From the perspective of information acquisition, algorithms also help break the information cocoon and make more information visible.

Therefore, online discussions about Zhong Shanshan's anger have presented many different voices. In fact, Zhong Shanshan's own statements this time have also been fermented on platforms like Douyin and transmitted to more people through algorithms. Perhaps Zhang Yiming has also seen them, but so far, he has not responded.

In addition, Zhong Shanshan also expressed his views on live streaming sales, and some entrepreneurs who have engaged in live streaming sales also "got hit."

Zhong Shanshan stated that he looked down on entrepreneurs engaging in live streaming sales and that he would never do it himself. Those entrepreneurs who get involved in live streaming sales are plain and flat, while Nongfu Spring is vertical and rooted.

Even Nongfu Spring itself could not escape the boss's "criticism."

Previously, to address the impact of public opinion on the sales of red-bottled Nongfu Spring, the company introduced green-bottled purified water. However, Zhong Shanshan stated that the decision to introduce green-bottled water was made in a fit of anger and that he still did not want people to drink it. He said he just wanted to tell everyone that red-bottled water (natural water) is worth the price, while green-bottled water is not.

Image source: Nongfu Spring's official Weibo

Zhong Shanshan's remarks have indeed tapped into the flow of traffic, sparking widespread attention and discussion. Many netizens have begun to "match" the entrepreneurs opposed by Zhong Shanshan, with Dong Mingzhu, Yu Minhong, and Lei Jun becoming key "suspects."

Overall, the controversy caused by these remarks is enormous. The key lies in the many contradictory contents when Zhong Shanshan attacked other entrepreneurs, and some of his statements are inconsistent with the strategies already implemented by Nongfu Spring.

For example, Zhong Shanshan opposed some platforms lowering the price system, but Nongfu Spring has not hesitated to engage in price wars.

When introducing green-bottled water, Nongfu Spring proactively triggered a price war, and major water brands followed suit, collectively entering the "1 yuan era" of bottled water.

According to ECNS reports, at a large supermarket chain in Guangzhou, multiple specifications of Nongfu Spring's drinking water products were on sale at discounted prices. For example, the price of 1.5-liter red-bottled natural water was reduced to 2.9 yuan per bottle, the price of 550ml*12 bottles of red-bottled natural water was reduced to 12.9 yuan, and the price of 535ml*6 bottles of Changbaishan mineral water was reduced to 10.9 yuan.

The source of the price war may be Nongfu Spring's attempt to regain market share.

Recently, according to Huxiu reports, due to the poor performance of beverage products in the first half of the year, Zhong Shanshan once internally required the packaged water department to issue a "military order" and initiate a round of strategic adjustments. He instructed the department that if it could not regain lost market share with red and green bottles, "the entire department would be dismissed."

However, in a recent interview, Zhong Shanshan denied ever issuing a "military order."

All actions taken by Nongfu Spring are striving to regain market share. Even live streaming sales, which Zhong Shanshan "blasted," is actually a key channel for Nongfu Spring's sales.

On the Douyin platform, where Zhong Shanshan made his remarks, there are official flagship store live streams for Nongfu Spring's natural water, "Send Water to Your Doorstep (Invincible Little Tomato)," and "Nongfu Spring Official Send Water to Your Doorstep" live streams. The homepage of the official flagship store's live streaming account also states, "Live streams are held irregularly from 8 am to 12 pm every day."

In fact, Zhong Shanshan's true-to-life remarks this time have somewhat of a "hurt the enemy but also hurt oneself" meaning, and their effect may not fully meet expectations. In the current public opinion environment, this high-profile and sharp approach has indeed attracted a lot of traffic but also drawn more fire.

2. Must entrepreneurs understand traffic? Zhou Hongyi offers advice

After the incident escalated, a circle of entrepreneurs called out by Zhong Shanshan did not respond, but Zhou Hongyi, the founder of the 360 Group, offered some viewpoints.

On November 21, 22, and 24, Zhou Hongyi posted three videos on his personal Weibo account, first mentioning the topic of "entrepreneurs criticizing live streaming sales" in a speech and then commenting on statements such as "Zhong Shanshan looks down on live streaming sales" and "Zhong Shanshan blasts internet platforms."

Zhou Hongyi mentioned that entrepreneurs do not necessarily need to create a personal IP but must understand traffic and at least know how to use short videos and live streams to continue their market and public relations work.

Image source: Zhou Hongyi's Weibo

In the video on November 22, Zhou Hongyi further responded to the issue of entrepreneurs engaging in live streaming sales.

He said he felt relieved after watching Zhong Shanshan's interview because he did not engage in live streaming sales and agreed with Zhong Shanshan's statement.

Zhou Hongyi said, "I strongly oppose entrepreneurs engaging in live streaming sales and not competing with ordinary people for a living. However, most entrepreneurs who build personal IPs are not actually selling products or only promoting their own products. Does this count as selling?"

Subsequently, Zhou Hongyi used Lei Jun, the founder of Xiaomi, as an example, believing that using the internet to promote one's own products is the right approach. He said that doing one's utmost to make one's products popular is an unshirkable responsibility for entrepreneurs.

This response first affirmed Zhong Shanshan's viewpoint and then distinguished entrepreneurs who promote their own products from those who compete with ordinary people for a living.

He believes that promotion is necessary. "If Lei Jun did not have 30 million fans, Xiaomi cars would not be the sales champion. We should learn from Musk. If he did not have so many fans and still tweeted every day, Tesla would not have achieved today's glory."

In Zhou Hongyi's view, the times are constantly changing, and entrepreneurs cannot be complacent; otherwise, they will cause their enterprises to fall behind or even be eliminated. Now that so many people in China watch short videos, it also poses new requirements for corporate communication methods.

In fact, the reason for Zhong Shanshan's latest blast is still because he believed he was subjected to "online bullying" before. Zhou Hongyi believes that at that time, Nongfu Spring's public relations department was basically dysfunctional. Many people were voicing their opinions, but it was unclear where the enemy was, and Nongfu Spring did not know how to convey its voice.

Image source: Nongfu Spring's official WeChat public account

"So, not understanding short videos and live streams, not being able to redefine the channels for voicing opinions, means having no voice. Not having a voice is a terrifying thing. Where users are, entrepreneurs should be there," Zhou Hongyi commented.

Regarding Zhong Shanshan, Zhou Hongyi still offered sincere advice. "I suggest that Mr. Zhong also learn the game rules of the social media and short video era, build a personal IP, and gain his own voice on the internet by having his own fans. Having a fan base to speak up for Nongfu Spring will not lead to a one-sided situation. The train of the times keeps rolling forward and will not stop to wait for us. We, the older generation of entrepreneurs, must keep up with the times and not look at new things with old eyes. We cannot fall behind ourselves."

In fact, it can be seen that in the past two years, Zhou Hongyi has indeed been exploring ways to build a personal IP, attract traffic and fans, and thereby promote his enterprise. These suggestions can be considered sincere and have attracted the attention of many people.

3. Will Zhong Shanshan change? After experiencing "online bullying" and counterattacks, will Zhong Shanshan change?

To answer this question, we must first understand what kind of person Zhong Shanshan is.

Zhong Shanshan's personality is characterized by the frankness and stubbornness of older-generation entrepreneurs.

Twenty-four years ago, Nongfu Spring initiated a "condemnation" campaign against purified water. Zhong Shanshan announced at the press conference that the company had decided to stop producing purified water.

Subsequently, Nongfu Spring continuously ran experimental advertisements detrimental to purified water for nearly three months, presenting three experimental data: a plant experiment with daffodils, an animal experiment on the survival rate of mice, and a cell experiment on red blood cells, all leading to conclusions detrimental to purified water.

Immediately afterward, Wahaha began issuing invitations to heroes and joined forces with 69 industry enterprises to form an alliance of life and death, holding a press conference to accuse Nongfu Spring, the "public enemy of the industry."

At that time, Zhong Shanshan, who "was not afraid of causing trouble," was called an industry "lone wolf," challenging the entire water industry alone.

In addition to waging a public opinion war, he also engaged in a price war with purified water factories to compete for the market, reducing the promotional price of Nongfu water to 1 yuan.

In 2007, Nongfu Spring ignited the second water war, targeting Master Kong's mineral water, making the acidity and alkalinity of water a topic of public discussion.

However, this time, since Master Kong did not publicly "accept the challenge," Nongfu Spring's public opinion war was not intense.

In 2009, Nongfu Spring was involved in the "arsenic gate" incident. Zhong Shanshan still adopted a drastic approach. Worried that the water samples might be tampered with after being taken by the industrial and commercial departments, he called that night and instructed 200 people to guard the samples and also reported the case. The incident ended with an apology from the inspection department.

Image source: Nongfu Spring's official WeChat public account

It can be seen that every time Zhong Shanshan faces questions, he responds directly and decisively.

For a long time afterward, Zhong Shanshan gradually faded from the public eye and entered a period of low profile.

Although he has been the richest man in China for three consecutive years on the Hurun China Rich List, Zhong Shanshan rarely attended public events.

According to reports from Time Weekly, Zhong Shanshan's last public appearance before 2024 can be traced back to 2020, when he first participated in the listing ceremony as the actual controller and chairman of Wantai Biological Pharmacy and then witnessed Nongfu Spring's listing in Hong Kong.

Zhong Shanshan, who has not publicly "gone to battle" for many years, may still not understand the origin of the public opinion uproar in February this year.

Neither he nor Nongfu Spring did anything wrong but were caught in a storm of public opinion with no clear opponent.

On August 10 this year, Zhong Shanshan appeared on the CCTV Finance channel's "Dialogue" program and euphemistically expressed his helplessness:

"It is impossible for everything to be resolved according to one's personal wishes. The sky is always bright, but the sun cannot shine everywhere. People like me should inherently bear more grievances than others."

"Regarding online attacks, I think let them be. That's it. I guess this time, the stigma against me online will not wash away easily. Let it be."

Screenshot of Zhong Shanshan's interview, image source: Nongfu Spring's official video account

However, obviously, Zhong Shanshan could not swallow this, and his statements this time were more direct than when he was interviewed before. Perhaps this is Zhong Shanshan's style.

On the evening of November 21, he posted a WeChat Moments status: "I offer my blood to the Emperor of China, enduring life and death for ten years beyond the body." This once again made his stance clear.

Whether Zhong Shanshan will build a personal IP and learn more about the public opinion environment of this era in the future is still unknown. But it is certain that he is still the combative Zhong Shanshan who will not easily retreat.",

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