Interview with Zong Qinghou, Chairperson of Wahaha Group： Work hard and prosper
Zong Qinghou: Nearly 200 proposals for 15 years of re-election to the National People’s Congress
CCTV News:Zong Qinghou, a deputy to the National People’s Congress and chairperson and general manager of Hangzhou Wahaha Group, has been re-elected as a deputy to the National People’s Congress for three terms since 2003. 2017 is his fifteenth year in office. In the past 15 years, he has submitted nearly 200 proposals and suggestions to the 10th, 11th and 12th National People’s Congress, about 260,000 words, with an average of 13 pieces per year. The content involves politics, economy, people’s livelihood, agriculture, rural areas, laws and regulations, real estate and other aspects.
Reporter:First, why write this suggestion from so many angles? Also, what time do you have to write this suggestion?
Zong Qinghou:It should be said that I have more than 80 bases across the country, located in various provinces across the country. Second, I often do market research and have extensive contact with all walks of life. Because I am also an ordinary person, people sometimes tell me, so I know more about all aspects.
Reporter:For example, in your proposal this year, I saw one. Governments at all levels need to improve their execution and deepen reform. Let’s take this as an example. Is this your own feeling, or is it a common feeling after you have run your project, or after communicating with more people?
Zong Qinghou:This is my own feeling, and of course I have also come into contact with other people. Because many of the policies of the Party Central Committee and the State Council, whether they are reform measures or not, are undoubtedly very wise and correct, and they are indeed aimed at making our country’s economic development better. Sometimes it is true that many of the policies of the central government are very good, but when it comes to the bottom, there will be no interest. For example, I have not been mentioning it to young people, because the housing prices are too expensive now, and they cannot afford to buy houses, so they cannot live and work in peace and contentment. Later, the State Council issued a document that could give some young people rent subsidies, but I don’t think local governments have implemented it.
Reporter:You think it’s necessary to write.
Zong Qinghou:The executive power of governments at all levels requires that employees at the bottom of enterprises also improve their executive power. The same is true for enterprises and governments, and the government also needs to improve its executive power.
Reporter:For example, the words you used just now, the original intention of this country is good, but there are some local governments that do not implement them effectively. Although these words are objective, are you afraid that saying them will offend people?
Zong Qinghou:It should be said that I am a business owner, operating according to the law and paying taxes, and I have no braids to be caught, so I am not afraid of what others will do. Since you are the representative of the people, you should say what the people want to say.
National People’s Congress deputies must be brave, outspoken, and kind
In Mr. Zong’s view, as a delegate to the National People’s Congress, one must be bold, outspoken and kind. The principle is to "dare to speak the truth and reflect the truth." This year, he submitted 14 various proposals to the National People’s Congress.
Reporter:For example, this year, I read your suggestions, one of which is about checking the use of administrative fees by governments at all levels. Why?
Zong Qinghou:It is often said that corporate taxes and fees are relatively heavy. Some leaders say that you often say that taxes and fees are heavy, and how much fees are charged? No one is clear. Later, I asked my finance department to go through our charges, so at that time, there were more than 500 charges. In 2016, it was reduced a little, by 200 items, but there were still more than 300 items. The Ministry of Finance later sent people to all my branches to check the accounts. After checking, he said that more than 100 inspection fees were combined into one item, so it became more than 200 items. He may be under a lot of pressure, but he doesn’t need that much pressure. The Ministry of Finance doesn’t ask you to collect the fees. Every department has no money to use, so they send a notice to collect it. But what is the use of this money? It should be said that there is no budget report. And I found that there is also a phenomenon that temporary workers are hired in many departments. Your money is allocated by the finance department.
In March 2003, Zong Qinghou attended the first session of the 10th National People’s Congress for the first time as a delegate. At that time, as a new delegate, he put forward six suggestions, which only covered his own industry. Later, the scope of his proposals and suggestions became more and more extensive. Economic development, national economy and people’s livelihood are his key areas of concern.
Reporter:For example, you once said that the most important thing for an entrepreneur is to do a good job in their business, which is their greatest responsibility and their greatest contribution to society.
Zong Qinghou:But if you say that the policy of the whole country is not good and the development of the enterprise is not good, will the development of the country not be good? The enterprise should be the economic cell of our whole country, and all the cells are dead, so the body is also dead? So we entrepreneurs should not only do a good job in the enterprise, but also care about national affairs. When the leaders from above go to the bottom, they may not see and hear some actual situations. They tell the leaders what is good, and let the leaders see what is good. Our reform and opening up country has indeed achieved good development and made good progress, but after all, there are still problems that have not been solved. We should let the leaders know these things.
Build a beverage kingdom with 30 years, no financing or listing, because there is no shortage of money
Mr. Zong, 72, was born in Hangzhou. After graduating from high school, he worked for 15 years in Zhoushan Salt Field and Shaoxing Tea Factory in Zhejiang Province. In 1979, his mother, a primary school teacher, retired and he took over as a primary school janitor. In 1987, at the age of 42, he started his business. He then spent 30 years building a beverage empire. But in the process of enterprise development, Zong Qinghou has insisted on not financing and not going public, which is somewhat out of line with the current popular practice.
Reporter:But now many companies will immediately raise funds and go public as soon as they develop. Why don’t you do this?
Zong Qinghou:Because there is no shortage of money in itself.
Reporter:Never been short of money?
Zong Qinghou:There is no shortage of money.
Reporter:I don’t believe it.
Zong Qinghou:You don’t believe it. You see that there is never a loan now, and there is always a large amount of deposits in the bank, but you manage your money in the bank instead of lending money to the bank.
Reporter:This is when you develop to a healthy operation, can you not go?
Zong Qinghou:I developed steadily from the outset.
Reporter:Never been short of money?
Zong Qinghou:There was no over-development, no shortage of money, you think about it, we were engaged in a joint venture at that time, I sold things first to collect money, bought raw materials, I pay at the end of the month, at the end of my payment, I have already made money, so I don’t need liquidity, but this depends on reputation, you promise to pay people on time, he will rest assured that people put money with you, and I also pay him interest, which is higher than his bank loan interest, so I guarantee that I have no bad debts.
Reporter:Even for such a large enterprise, the possibility of going public and raising funds is the modern way of doing business. Are you prepared to never do it, or will you do it someday?
Zong Qinghou:If there is a big investment, I may also go public, and I may also take out a loan, but there are no big investment projects now. Why should I take out a loan when I have enough money now? I will go public again. If I go public, I must generate benefits for shareholders. Otherwise, you will be scolded by others and make up stories to deceive the people’s money. It is not easy for the people to earn money.
"You don’t have wealth, how can you enjoy it?"
In recent years, despite the surging Internet economy, Zong Qinghou has remained unmoved, single-mindedly managing his beverage kingdom and becoming a representative figure of the real economy.
Reporter:You told the reporter yourself that I sold a bottle of water and a bottle of water. But now what? We see some, he can have great wealth overnight, several nights, with a story. What do you think of such wealth?
Zong Qinghou:He came and went quickly. I think it’s better to be down-to-earth and engage in some industry, because the real economy is an economy that creates wealth. You see at the end of the Qing Dynasty, our GDP was also the largest in the world, but what was his GDP? It was silk, porcelain, tea, etc. You closed your country and lost the opportunity for the Industrial Revolution. After the foreign guns and foreign guns were built, the 38,000-nation coalition army beat you and fled, which made us go through a long period of time, a semi-feudal and semi-colonial society, and we were bullied by others.
Reporter:So what do you think this history shows?
Zong Qinghou:What it means is that you must develop the real economy and our manufacturing industry. Your manufacturing industry is advanced, and we have advanced weapons. Who would dare to beat us? So at that time, we proposed to save the country through industry. Now I think we need to be a strong industrial country. Although we have become the second largest economy through reform and opening up over the years, and we have also become an economic power and a manufacturing power, you are not a strong country. We don’t have many advanced things yet, and we don’t have many core technologies either.
Reporter:This is how you look at this from the perspective of doing business. But do you feel that the moment we live in, the society we live in seems to be…
Zong Qinghou:Too impatient.
Reporter:Everyone is more envious of the way to get rich quickly and quickly, but everyone knows that planting crops requires a process and must wait for it to mature naturally. What do you think of this kind of entrepreneurship?
Zong Qinghou:In fact, I sometimes tell young people that when I say you start a business, you don’t have to be a boss to start a business. You can’t be a boss in the country of more than 1.3 billion. In the past, it was said that 360 lines, and you were the champion. Your employment is entrepreneurship, and being a good teacher is also entrepreneurship. Being a famous host is also entrepreneurship. Being a good doctor is also entrepreneurship. It doesn’t mean that a boss is entrepreneurship. This concept needs to be changed. In addition, I think young people, it is indeed good to talk about teachers. Education, including media and public opinion, is the same. It is necessary to form a good atmosphere.
Zong Qinghou does not hide his views. On many occasions, he has spoken bluntly about the concept of industrial prosperity, and at the same time put forward his own different views on some new economic forms.
Reporter:Maybe many people think that you are an outdated role model. Because although you have been doing it for 30 years, you have worked too hard and been too tired. Maybe if more young people today don’t see you as a role model, but more Internet entrepreneurs as role models, what do you think?
Zong Qinghou:It’s impossible for everyone to make money so easily. Everyone is relaxed, and when the time comes, everyone will not be easy, and if they don’t work hard to create wealth, there will be problems later. For example, if you like Europe, with high welfare and high taxes, after such a long time, you will not create wealth. Mainly because there are more people enjoying wealth and fewer people creating wealth, then there will be problems again.
Reporter:Would you rather be someone who enjoys wealth or someone who creates it?
Zong Qinghou:First of all, I think we should create wealth, and only by creating wealth can we enjoy wealth.
Reporter:Can’t it be turned upside down?
Zong Qinghou:It cannot be reversed. You have no wealth, how can you enjoy it?
Zong Qinghou: The first thing to do in an enterprise is to be diligent, and the second is not to be mercenary
For a long time, Wahaha’s internal management mechanism has also been famous in the industry. For a long time, Wahaha Group had only one chairperson and one general manager, and Zong Qinghou himself served as the chairperson. The group did not have a deputy general manager, and the management of various fields such as production and sales was handled by various ministers. This almost difficult-to-replicate mechanism has left many people wondering how Wahaha would have developed without Zong Qinghou when Zong Qinghou would have retired from management.
Reporter:If you use a hundred years to measure an enterprise, you are firmly in control of the previous period and the first half. If you want to reach the goal of a hundred years, what should you do in the second half?
Zong Qinghou:I think I can manage it for 50 years. I think my lifespan is still relatively long, and my health is relatively good. In the next 20 years, I hope to gradually institutionalize it and do it well in all aspects. In the future, people will know how to do it. This way, this enterprise may enjoy a long life.
Reporter:We still need a system.
Zong Qinghou:System.
Reporter:Why didn’t you consider this issue earlier?
Zong Qinghou:I used to have it too. At that time, I was personally catching it, but now I want them to divide their labor and let them catch it, so that they actually know how to catch it. Therefore, I have now appointed two vice presidents, and I am also cultivating them, gradually and gradually training the management, because in the end, it is still the management who manages this. Professional managers manage enterprises, and China will definitely come to this step, but now we Chinese professional managers, this group has not yet formed, so many of us young people should go to enterprises to train as professional managers.
Entrepreneurs are the main force of economic development, so for many years, Zong Qinghou has not been far from the media spotlight. And Zong Qinghou believes that under the spotlight, entrepreneurs should pay more attention to social responsibility. For the young entrepreneurs in the current entrepreneurial wave, Zong Qinghou also has something to say.
Reporter:Do you think there are some constant entrepreneurs and some qualities that entrepreneurs should have? No matter how the times change, they should be firmly adhered to?
Zong Qinghou:Entrepreneurs first diligence is the most important. If you don’t work hard, how can you achieve success?
Reporter:Diligence comes first. What else?
Zong Qinghou:The other second is that you want to create wealth for the public, not for profit.
Reporter:From your perspective today, you can think that I am creating wealth for the general public, but for many fledgling entrepreneurs, it is not about creating wealth for themselves.
Zong Qinghou:Indeed, there is a process. At first, you strive for your own survival. After a certain degree, when your own survival is no problem, then you have to create wealth for society and make contributions to society.
Reporter:This is the only way.
Zong Qinghou:The only way to go is through a process.
Reporter:As an old entrepreneur, as a successful entrepreneur, if you give these young entrepreneurs, entrepreneurs who are just starting out, what advice would you give them from the older generation to the younger generation?
Zong Qinghou:I think one is to have a good mindset first.
Reporter:What is a good mindset?
Zong Qinghou:Some money is something you can earn, some things you can achieve through hard work, and some things you don’t want to start at once and never achieve.
Reporter:I don’t quite understand.
Zong Qinghou:In the process of starting a business, sometimes you can’t be too ambitious and think too well. In fact, you just need to be down-to-earth and take it step by step. When I started my business, I was helping people dropship popsicles and ice cream, and I didn’t expect to be the largest beverage company. You have to improve your goals step by step and develop step by step.
Reporter:If you start with this goal, chances are you won’t be able to achieve it.
Zong Qinghou:Maybe it’s over.
Reporter:Is this the only sentence, or is there more to these young people?
Zong Qinghou:Sure, your entrepreneurial process will encounter many difficulties. The key is that you have to persevere and go on, but you can’t help but correct it. If you feel that this path is not going to work, you have to reconsider this. How to go down the road behind, you can’t go dark one way. Second, if you encounter difficulties, you can’t be downcast and don’t want to do it, then you will never be able to do things.
"Having wealth and having others respect wealth are two different things"
As an older generation of entrepreneurs, Zong Qinghou rarely talks about various concepts that are popular at the moment. He does not have bodyguards or is surrounded by people, and he rarely has famous brands all over his body. For a long time, he lived in an ordinary residential area with little entertainment and leisure. Even if he was over 70, he often worked fifteen or six hours. When it comes to wealth, this entrepreneur who started by selling popsicles has a more calm attitude than the average person.
Zong Qinghou:When I was young, I was probably poorer than you, poorer than the average person. I lived in the countryside for fifteen years, and I didn’t have enough food or warm clothes, so I should have been created by ordinary people through hard work and entrepreneurship, but I should still develop the habit of thrift. Generally speaking, I am still wealthy, but I think this money is still social. How much can I use? I still classify myself as the life of ordinary people. You see, I don’t wear any luxury goods. I have not participated in some of their things, and I still can’t play golf or say what they want to do. I didn’t participate.
Reporter:Do you not like it from the bottom of your heart, or do you like it too but don’t have the time?
Zong Qinghou:It should be said that I don’t like it either, because I’m busy with work every day now, and I haven’t had this idea since I was a child.
Reporter:No. What sort of idea?
Zong Qinghou:There is no thought of enjoying this life either.
At the end of 2016, a photo of Zong Qinghou taking a second-class high-speed rail ride caused heated debate in the community.
Reporter:Many people think that if you don’t take the business seat, you should at least take the first-class seat, so why don’t you take it? Do you have to take this second-class seat?
Zong Qinghou:It’s not because I have to take a second-class seat, because I couldn’t buy a ticket that day, and a second-class seat is a second-class seat, and it doesn’t matter to me anyway.
Reporter:Don’t you think there is a difference between this?
Zong Qinghou:I don’t think there’s a difference. I don’t think that’s right.
Reporter:Which view is wrong?
Zong Qinghou:It doesn’t necessarily mean that rich people have to fly business class.
Reporter:What’s the money you make?
Zong Qinghou:Money only reflects your value. You have to enjoy it, and you can’t enjoy it all.
Reporter:What is enjoyment for you? What is enjoyment?
Zong Qinghou:Enjoy I feel that things are done successfully, that is, enjoy, and be happier.
Reporter:Still can’t live without work.
Zong Qinghou:That’s right.
Reporter:What about life?
Zong Qinghou:It’s nothing in life, I eat in the cafeteria. Maybe I have an iPad next to me when I eat, which is a little easier.
Reporter:What is your ideal living situation?
Zong Qinghou:Now I don’t think about any ideal or unideal living conditions. I feel that I can feel better.
Reporter:What are your standards?
Zong Qinghou:Make the people more satisfied with your business, more respect you, respect your wealth. It’s not that easy to do this.
Reporter:Having wealth and having others respect wealth are two different things.
Zong Qinghou:Yes.
Reporter:What do you think is the difference?
Zong Qinghou:If you have wealth, help others to become wealthy together, so that they will respect you. If you don’t help others with wealth, they may be jealous of you. If you help others become wealthy, he will definitely respect you.