Author | Chestnut
Edit | chestnut
Product | Investor Theory (Investment Theory)
Yesterday, "202 1 Hurun Global Rich List" was released.
Zhong Shanshan, the 67-year-old founder and chairman of Nongfu Spring, with a net worth of 550 billion yuan, became the first China entrepreneur in China to enter the top 10 list of the world's richest people, ranking seventh.
Compared with high-profile Ma Yun and Ma Hua Teng, Zhong Shanshan is undoubtedly a typical invisible rich man. He is so low-key that you can't even pronounce his name.
He not only founded Nongfu Spring, but also made Yangshengtang Guiling Pill, Nongfu Orchard and Mama brand beef sticks. ...
Moreover, Wan Tai Bio, which he invested in as early as 201,went public in April 2020 and won 26 daily limit shares, becoming the most daily limit new shares in 2020, with a market value as high as 1026 billion yuan.
The richest road in Zhong Shanshan is more than a bottle of Nongfu Spring.
On Investors respects every valuable cognition and hopes that these profound thoughts will be seen by more people.
From 65438 to 0954, Zhong Shanshan was born in Hangzhou, Zhejiang, and his parents were intellectuals. Zhong Shanshan's grandfather Zhong Ziyi was the first Party branch secretary of Zhuji during the Northern Expedition.
However, at that time, due to family poverty, Zhong Shanshan was forced to drop out of school in the fifth grade of primary school, during which he studied masons and became a carpenter.
According to his childhood writer Mei Zhi, when he resumed the college entrance examination in 1977, although he didn't even know the most basic algebra knowledge, he still insisted on taking the college entrance examination. I've been taking exams for two years in a row, but I fail in Sun Shan by more than 20 points every year.
After failing in the college entrance examination, Zhong Shanshan had no choice but to follow his parents' advice and went to RTVU.
At the beginning of 1988, the state officially approved the establishment of Hainan Special Economic Zone, which was followed by a wave of gold rush in Hainan. Many famous rich people on today's wealth list are gold diggers of that year. For example, Li Shufu, the boss of Geely, and Pan Shiyi, a real estate tycoon.
At that time, all three pages of Zhejiang Daily reported crazily, which made Zhong Shanshan itch. He decided to leave his job without pay, devoted himself to the gold rush and started his career as a businessman.
Zhong Shanshan's initial ideal was to set up the first private newspaper in China. But even in the newly established special economic zones, newspaper serial numbers are still off-limits for private enterprises.
Unable to run a newspaper, Zhong Shanshan focused on growing mushrooms. Mushroom cultivation became Zhong Shanshan's earliest entrepreneurial project in Hainan.
However, Hainan is very humid in the morning and evening, especially dry at noon, which is not suitable for mushroom growth. As a result, this project soon lost all the investment of Zhong Shanshan.
In that era when the per capita wage was tens of dollars, tens of thousands of dollars was not a decimal. Zhong Shanshan lost a lot of money on mushrooms, and he was at a loss.
During that time, Zhong Shanshan earned tens of thousands of dollars selling curtains today, and he will still raise shrimp in Wanquanhe tomorrow. Anyway, he didn't make any money by going back and forth.
Later, by chance, he saw the huge profits of health care products, and also forged a hatred with Zong Houqing, chairman of Wahaha.
Left: Zhong Shanshan, right: Zong Houqing
During the period of 1988, the health care products market was in full swing, and the "Sun God" who specializes in biological health care oral liquid fought against the "Wahaha" fairy who sold children's nutrient solution. It took the two companies three years to become the leader and the second child in the health care products market respectively.
Under Zong's leadership, Wahaha has developed from the distribution department of a school-run enterprise in Hang Cheng to a large enterprise with an output value of over 100 million yuan.
199 1 year, Zong acquired eat small fish, a big fish, merged Hangzhou Canned Food Factory and established Hangzhou Wahaha Group.
This year, Zhong Shanshan is the general agent of Wahaha Oral Liquid in Hainan and Guangxi.
During that time, health care products were very popular. In addition to Sun God and Wahaha, brands such as Zhu San Oral Liquid have also come out one after another. In just a few years, the turnover exceeded 8 billion yuan, higher than Lenovo, Haier and other emerging technology companies.
Health care products are an ideal way to earn money with less investment, quick return and high profit. Zhong Shanshan doesn't want to be an agent all his life. He wants to devote himself to this sport. But the biggest problem is that I didn't make any money a few years ago and didn't have the initial capital to start a business.
Coincidentally, Zhong Shanshan is in charge of Hainan and Guangdong.
At that time, because Hainan was a newly developed special economic zone, Wahaha had preferential prices for agents; On the other hand, Wahaha oral liquid is very popular in Guangdong. This made Zhong Shanshan, a native of Zhejiang, aware of this opportunity.
He took advantage of his position to transport the goods he got at a low price in Hainan to Zhanjiang and other places in Guangdong for sale at a high price.
This practice, which is called "commodity smuggling" in the brand retail industry, is a very serious problem.
After the incident was exposed, Zong Houqing, chairman of Wahaha, deprived Zhong Shanshan of the general agent qualification and directly fired Zhong Shanshan.
This is the first time that he zong has been directly frozen together.
Despite the loss of Wahaha's agency, Zhong Shanshan has seen great prospects in the health care products and beverages market.
After coming out of Wahaha, what really made Zhong Shanshan famous was "Yangshengtang Guiling Pill".
Once, Zhong Shanshan and his friends ate in a restaurant. He found that almost every table guest ordered healthy soup. It turned out to be a health soup made of local specialty soft-shelled turtle in Hainan. Delicious and nutritious, it is very popular with local consumers.
Zhong Shanshan's Zhejiang businessmen's talent immediately inspired him: This restaurant makes health soup, so I want to make health pills.
1993 10, Zhong Shanshan established Hainan Yangshengtang Pharmaceutical Co., Ltd. in Haikou, and immediately hired three experts from the University of Traditional Chinese Medicine to spend eight months developing Yangshengtang Guibie Pills.
Tuyuan network
At the time of publicity, the main idea of Guibie Pill is: using natural turtle as raw material, according to traditional Chinese medicine theory, using modern ultra-low temperature freezing technology, turning the whole turtle into fine powder at MINUS 196 degrees Celsius.
Because of its unique concept, Guiling Pills were snapped up on the first day. In just one year, the turtle balls were sold from Hainan to the whole country, and Zhong Shanshan earned the first100000 yuan in his life.
Since then, Zhong Shanshan has been frantically building its own empire of health products.
There are many brands and products 10, such as Qingzui, Happy Growth and Duoer Capsule, all under the banner of health pavilion. The industries involved span four major fields: health care products, biopharmaceuticals, beverages and food. Customers from primary school students to the elderly, as long as they can walk, are within his business scope.
Product structure of health pavilion
In the 1990s when health care products flooded, Zhong Shanshan summed up a set of his own business secrets:
"If a small business wants to grow and develop, the type of operation must be unique and it must be profiteering. Because there is no scale effect for you to accumulate slowly. 」
This sentence also represents Zhong Shanshan's product design and marketing style.
In terms of time, Zhong Shanshan is definitely the first gold digger in the health care industry. Although his product advertisements are not as brainwashing as Shi Yuzhu's melatonin, they still make a lot of money.
When all the health care products companies were making big profits, Zong noticed the potential crisis.
First of all, the ingredients of health care products are not standardized, and some brands have been investigated for containing hormones that are unfavorable to children; Later, it developed into malicious competition, and enterprises joined hands with the media to expose vicious incidents to each other.
Therefore, Zong led Wahaha to turn losses into profits, completely withdrew from the health care products market, turned to the beverage market strategy, and sold Wahaha fruit milk instead.
Zhong Shanshan watched his old rival Wahaha go away and became alert.
Sure enough, in the following years, the market changed suddenly.
1998, an old man died suddenly in Changde City, Hunan Province. The media broke the news that the old man took eight bottles of Zhu San oral liquid during his illness, which was also the "Zhu San incident" that was widely rumored in the society that year.
After the three incidents, the high-level officials were furious and ordered to strictly control the health care products market. Many once-popular health care products disappeared overnight.
Fortunately, Zhong Shanshan also retreated with his old rival. It's just that Hezong stood on the same battlefield again after he stopped wading into the muddy water of health care products.
1996, Zhong Shanshan, worth tens of millions, returned to Hangzhou to establish Zhejiang Qiandao Lake Health Center Drinking Water Co., Ltd. (predecessor of Nongfu Spring).
Despite its abundant financial resources, Zhong Shanshan's prospects are not optimistic.
At that time, the drinking water market had been firmly occupied by brands such as Wahaha and Master Kong.
At that time, Wahaha's AD calcium milk dominated the market, and 1992 began to produce mineral water. It is a well-deserved market leader with annual sales exceeding 1 100 million. Robust, Master Kong and other brands are also close behind.
Nongfu Spring is even more difficult to tear a hole.
However, Zhong Shanshan's previous experience in the marketing of health care products really opened up the market space for Nongfu Spring.
"Health products are popular because people's demand for health has increased. If we can link health with a market with more consumption potential, it must be a big deal. 」
First of all, Zhong Shanshan named his product Nongfu Spring, which is grounded and gives people a sense of purity of nature.
Secondly, in marketing, Zhong Shanshan claimed that drinking purified water for a long time was harmful to human health. Nongfu Spring, on the other hand, only produces natural water.
You know, at that time, pure water was produced by water enterprises headed by Wahaha and Robust.
This kind of market action is a direct and positive declaration of war in the eyes of peers.
This means that Hezong's second effort still ended in failure.
Although the lawsuit was lost, it didn't suffer anything, and Zong didn't take much advantage.
The brand war is on the table and everyone can see it. But in addition to marketing, there are some strategies that Nongfu Spring has been cultivating for many years.
In the production process, Nongfu Spring has a set of original logic: building a water source reservoir at the source and taking water directly from the source, which makes the upstream heavy.
In terms of channels, Nongfu Spring began to go into battle lightly, adopted a large distribution system, streamlined distribution channels at all levels, and greatly increased the gross profit margin of sales.
With the outbreak of several major events in the industry (Master Kong's "Water Source Gate" incident and Ipoh's "Water Quality Gate" incident), the market share of Nongfu Spring has gradually increased unconsciously.
In 20 18, the market share of Nongfu Spring was 28.3%, ranking first in the market for several consecutive years. Wahaha's market share is less than 7%.
Nongfu Spring has become the absolute leader of drinking water market in China.
Last September, Nongfu Spring landed on the Hong Kong Stock Exchange.
Although selling water is no longer a sexy business in the eyes of investors, Nongfu Spring still got a fundraising amount of 654.38 billion US dollars.
According to the disclosed data, Zhong Shanshan holds 65,438+07% shares of Nongfu Spring directly and 67% shares through Yangshengtang, and is the absolute controlling shareholder.
Do you think Nongfu Spring is his only gold mine? No, his other identity is the controlling shareholder of Wan Tai Bio, a biomedical company. This is another demon stock in the A-share market in the first half of 2020.
As early as 200 1, Zhong Shanshan spent 1765438+ ten thousand yuan to buy 95% equity of Wan Tai Bio.
Wan Tai Bio's main business is manufacturing in vitro diagnostic reagents and vaccines. Fortunately, in 2020, both test paper and HPV vaccine will be hot spots in the market.
As the first batch of in vitro diagnostic reagents and the only HPV vaccine enterprise approved for listing in China, the biological market value of Wan Tai soared more than 30 times in April 2020, from about 2.8 billion to nearly 90 billion.
This investment directly brought more than 80 billion yuan of wealth to Zhong Shanshan. It is no exaggeration to say that Zhong Shanshan is a top investor.
Today, there are two listed companies in Zhong Shanshan. Through the direction and nature of these two companies, we may be able to see the projection of Zhong Shanshan's personal experience and business ambition.
Zhong Shanshan once publicly stated that Nongfu Spring was not short of money, so it was not listed, but now it is crazy.
After all, although Zhong Shanshan is a super rich man, he still wants to make more money.
According to the prospectus of Nongfu Spring, the accumulated net profit of Nongfu Spring in recent three years was11900 million, but the dividend reached 103 billion yuan, from which Zhong Shanshan got a dividend return of over 9 billion yuan.
That is to say, before listing, Zhong Shanshan and his family divided up the property of Nongfu Spring for three years.
This dividend rhythm is a typical family business routine and a hobby of Zhejiang businessmen. Not many people talk.
Zhong Shanshan is familiar with business: the left hand grasps market opportunities, and the right hand never relents when dividing money. No matter how the market questioned it, the money still went into his pocket.
Looking back at Zhong Shanshan, until now, his presence in public is also very weak.
Ma Yun has never attended the Zhejiang Merchants Conference, and he didn't even show up when Wan Tai Bio rang the bell. Zong's biographies have been published one after another, but Weibo can't be found on the Internet.
The top rich man who made a fortune and was maverick proved that only by recognizing the environment, finding the right products and knowing how to market can he win the favor of consumers.
Today, despite the impact of the COVID-19 epidemic, the wealth growth in 2020 is the largest in the past decade.
In the past year, the prosperity of the stock market and the emergence of a large number of new listed companies have created eight new billionaire entrepreneurs every week.
In the past year, China's richest people have more new faces than the rest of the world combined, and far more than the United States.
In 2020, China added 256 billion-dollar entrepreneurs, becoming the first country in the world with 1 1,000 known billion-dollar entrepreneurs, with 1 1,056, exceeding the sum of the following three countries: the United States, India and Germany.
Obviously, the logic of the wealth-making movement is changing, and "being more China" is becoming the biggest certainty among uncertainties.
There is no doubt that the wealth of the rich will rise and fall with the share price of the company in their hands. Today is you, tomorrow is him.
This time, how long will the roller coaster of wealth, Nongfu Spring and Zhong Shanshan last?