Wahaha Sales Plunge After Kelly Zong Lawsuit, Distributors Fear Business Collapse: Some Consumers Boycott

July 18th – Wahaha, the Chinese beverage behemoth, finds itself navigating choppy waters after recent news of a lawsuit against Chairperson Zong Fuli by individuals described as her “half-siblings” surfaced, thrusting the company into the media spotlight.

Third-party data indicates a potential ripple effect on sales. E-commerce platform data reveals a dip in Wahaha’s daily sales, sliding from a range of 10,000-12,000 units on July 14th and 15th to a lower bracket of 5,000-7,500 units.

The situation has prompted concern amongst Wahaha distributors. One such distributor voiced apprehension, questioning their prospects for the remainder of the year: “As a Wahaha distributor, can I even survive this year?”

While some observers have linked the sales dip to perceived reputational damage to the Zong family patriarch, industry experts are urging a more pragmatic view. “As a beverage company,” one expert noted, “bottled water is simply bottled water. The quality of a bottle of water depends on the quality level of the company’s production lines, not the moral standing of the entrepreneur.” The core argument is that product quality and operational efficiency should be the primary determinants of consumer choice in this sector.

Zong Fuli, the heir apparent, has previously publicly expressed reservations about the reliance on a founder’s image for brand representation, stating that she doesn’t believe the company founder should equal your image. This perspective suggests a forward-thinking approach aimed at decoupling the brand from individual personalities, a strategy that many multinational corporations have successfully employed.

For Wahaha, the true challenge isn’t simply navigating public sentiment but rather confronting the intense competition and ever-evolving consumer preferences inherent in the beverage industry. Adapting to these market dynamics will be crucial for long-term sustainability and growth.