Adhere to "independent innovation" Wahaha to make brilliant achievements

In 2006, it was another good year for Wahaha to fly. From January to July alone, Wahaha achieved operating income of 11.6 billion yuan, profits and taxes of 1.9 billion yuan, and profits of 1.2 billion yuan, up 28%, 34% and 34% respectively from the same period of last year. Among the top 10 beverage companies in the country, the company’s economic indicators such as beverage production, sales revenue, and profits accounted for 51%, 56%, and 75%, respectively. Independent innovation has brought three major characteristics to Wahaha's economic development this year, namely, “there are few rapid growth, few competitive situations, and rare high growth quality”.

Why Wahaha Innovation can generate such rapid growth through innovation? Zong Qinghou, chairman of the Hangzhou Wahaha Group, said that in terms of independent innovation, effective is the last word.

Centralized management Wahaha step by step

Some marketing experts are confused about Wahaha's management and management system. Wahaha's operating income is more than 10 billion yuan. There are groups of more than 70 branch companies, but they do not have positions as deputy general managers. How will the Wahaha leadership manage many branch offices? Zong Qinghou said with a smile, Wahaha did not set up a post of deputy general manager since its inception, and always maintained authoritative management. This is a lesson learned from the slow development of some state-owned enterprises.

Zong Qinghou firmly believes that doing a business is like fighting a war. If you seize opportunities, you can succeed at one stroke. If you want to quickly seize market opportunities, you must ensure that the two key management links of “decision making” and “execution” are effective and rapid, and reduce intermediate links in management. Instead of deputy general managers, the corresponding responsibilities are directly assigned to the ministers of more than a dozen departments. From the perspective of the group's development practice, it is this “centralization” that “was decided” that enabled Wahaha to seize many opportunities and achieve rapid development.

In recent years, Wahaha Group has strengthened the construction of its management system. Although the Group is still focusing on a centralized management system, the finance, procurement and sales of its subsidiaries in the country are controlled by the headquarters in Hangzhou. However, the Group is carrying out reforms such as graded authorization. In terms of management information, the Group has used the ERP and other modern information management methods and has been very successful. As far as Wahaha has consistently achieved remarkable achievements in recent years, this kind of centralizing and effective theory can withstand practical and theoretical tests.

Diversified Wahaha's “Attachment”

When Wahaha occupied the leading position in the domestic beverage industry in 2002, Wahaha had taken the initiative to start the children's wear business. There were few companies that succeeded in diversification at that time, and many marketing experts believed that diversification seemed to be a trap. Because diversified operations will cause business management to miss one another, it will damage the development space of the original advantageous products. However, Mr. Zong Qinghou firmly believes that enterprises must be large and strong, and diversification is an inevitable path. The key to success is whether the company has the strength, the ability or the opportunity to do so.

After 16 years of steady development, Wahaha had accumulated a lot of talents and accumulated sufficient funds. Zong Qing later felt that since he had the ability and strength to open up another new world in diversification, he should have the courage to try. At that time, there were few domestic children's clothing industries with strong strength, and there were no monopoly-type big brands. The children's clothing market had huge development potential; China was a big country of clothing, and many of the world's famous brands were processed in China. China is not a strong country in clothing, but the key It is the market that has no independent Chinese brands. The Wahaha leadership believes that the Wahaha brand is suitable for developing children's wear, so they decided to take a diversified first step in children's wear.

In fact, Wahaha's children's clothing is not a "forceless choice" but focuses on the "diversification strategy". Practice has proved that our diversification strategy is very effective. Now Wahaha has seized the "beat" of the children's wear market, with sales of 100 million yuan, ranking among the top ten children's wear brands in the country and becoming the leader in the children's wear market. According to Wahaha's profound understanding of the current situation of the domestic children's wear market, the Group has also adjusted the development goals for children's wear. In the future, Wahaha will basically abandon the county-level market and concentrate on market expansion in large and medium-sized cities. Through the continuous efforts of Wahaha employees, it is bound to find the most effective way of diversified development.