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… Although the company claimed that new signings exceeded terminations, insiders said smaller distributors are being systematically phased out.
Distributor Chen Li, who managed an eastern territory in China for more than 30 years with annual sales above RMB 10 million (USD 1.4 million), said her county was told only one distributor could remain. “The regional manager demanded RMB 5 million (USD 700,000) as a renewal deposit. The other distributor quit,” she said.
Even participation in Wahaha’s annual national distributor conference now requires more than RMB 10 million in yearly sales, a stark shift from Zong Qinghou’s inclusive tradition.
Zong also imposed strict key performance indicators on frontline managers, including visit quotas, sales growth targets, and demotions to “merchandiser” status for missed goals.
By comparison, competitors such as Coca-Cola directly manage their top 20% of outlets, while Nongfu Spring splits compensation between distributors (base salary) and the company (commissions), creating tighter oversight and better-trained sales teams.
To regain control, Wahaha has begun investing in direct infrastructure. In December 2023, it announced tenders for 100,000 smart coolers, signaling an effort to reclaim end-channel visibility.
But overhauling a 30-year-old distribution network overnight is a formidable challenge. “It’s a huge test of her execution and endurance,” one former employee said.
<h3>The perils of speed</h3>
“She moves too fast,” a former Wahaha staffer said. “She thinks she can fix everything at once. Zong Qinghou would never have shaken the foundation like this.”
Under her new sales policy, distributors and sales teams were required to post month-on-month growth. That was almost impossible, especially since early 2024 saw an emotional surge in Wahaha sales after Zong Qinghou’s death and a consumer backlash against Nongfu Spring.
“Even state-run cafeterias and government units swapped out Nongfu for Wahaha,” one entrepreneur said. “It was patriotic consumption.”
But the boom faded quickly. When sales failed to surpass last year’s record, distributors faced penalties. “Miss one month, you get a warning. Miss two, your account is closed,” said Chen Li, who ultimately lost her 30-year franchise in July.
Her inventory remains uncollected, and her regional manager was later dismissed for underperformance. Even more puzzling, her territory was reassigned to a small husband-and-wife wholesaler “with no warehouse, no trucks, no team,” she said.
Wahaha’s aggressive distributor purge has since spread nationwide. The company reportedly reduced its 6,000-strong distributor network to about 3,000. Internal data reviewed by 36Kr shows that in September, 58 distributors were terminated, 412 received warnings, and more than 250 saw sales drop by over 50%.
Sales managers have also been hit hard. “Miss one month’s target, and you’re downgraded to merchandiser pay,” said former manager Wu Ming, whose monthly income dropped from nearly RMB 20,000 (USD 2,800) to a few hundred RMB. Under Zong Qinghou, evaluations were annual, not monthly.
By midyear, labor unrest had become widespread. Roughly 6,000 employees whose contracts were moved to Hongsheng Group companies staged repeated protests at Wahaha’s headquarters in Xiaoshan. Videos obtained by 36Kr show senior executives Yan Xuefeng and Zhu Lidan trying to calm the crowds as Zong Fuli sat inside, expressionless.
The turmoil has taken a toll. According to Nielsen data, in the first half of 2025, Wahaha’s “AD” calcium milk sales in East China fell 37% year-on-year, while its bottled water market share declined from 18% to 12%.
<h3>Who built Wahaha?</h3>
Was Wahaha’s rise to a powerhouse the achievement of one person?
Under Zong Qinghou, it was a symphony of shared interests with employees, distributors, and the government all working in alignment.
At the brand’s 20th anniversary celebration in 2007, more than 5,000 employees, 3,000 distributors and suppliers, and 200 government officials attended. The city government presented Zong with a special award recognizing his contributions.
Two years later, during the Wahaha-Danone dispute, local authorities once again sided with Zong, publicly opposing what they called “foreign hostile takeovers of national brands.” Even the Ministry of Commerce intervened to mediate.
November, the time of Wahaha’s annual national distributor conference, has always been crucial. It’s when deposits are collected and new contracts are signed.
Zong Qinghou viewed it as the company’s symbolic “opening bell.” Even two months before his death in late 2023, he personally attended the event.
But this November looks far less certain.
Insiders told 36Kr that Hongsheng began urging distributors to pay deposits as early as September. Yet as of October 17, only one market had met its quota. “With July and August sales falling, a strong November is already impossible,” one source said.
A lack of renewals poses enormous risk. Hongsheng’s market division reportedly issued a notice requiring all deposits to be paid by October 28, with contracts explicitly confirming the use of the Wahaha brand and affirming that the November conference would proceed as planned.
For distributors, the message should be reassuring, but skepticism runs deep. “Too many policy swings, too much money at stake,” one said. “No one dares move first.”
Another insider said Zong had even considered halting all production in November and sending unpaid workers to confront the group, underscoring how tense the situation had become.
Now, negotiations revolve around one pragmatic question: if Hongsheng continues producing Wahaha-branded drinks, how will profits be divided?
For now, the fiery trademark dispute has been set aside. Because before anything else, Wahaha must simply survive. Only then will the rest of the battle matter.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3522581139233669">article</a> was written by Zhong Yixuan for 36Kr.

Who owns Wahaha? Inside the power struggle reshaping China’s biggest beverage empire

China

… srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158061" class="wp-caption-text">A snapshot of a TransGuard demo showcased at FBOE’s booth during SWITCH 2025. Photo by KrASIA.</figcaption></figure>
Speaking with KrASIA, An said that FBOE’s inaugural participation in SWITCH through the KISED-led pavilion stemmed from its interest in the Singapore market, citing the country’s robust marine and shipping sectors. Singapore is widely recognized as the world’s leading logistics hub, according to the <a href="https://lpi.worldbank.org/international/global">World Bank’s 2023 Logistics Performance Index (LPI)</a>. The index evaluates factors such as infrastructure quality, logistics competence, and tracking and tracing capabilities. As a global leader, Singapore’s freight and logistics market continues to expand, with <a href="https://www.mordorintelligence.com/industry-reports/singapore-freight-and-logistics-market">Mordor Intelligence</a> projecting a compound annual growth rate of 6.3% between 2025–2030, expanding from about USD 24.5 billion to USD 33.3 billion by the end of the decade.
An added that FBOE received strong interest from SWITCH visitors, which will inform the company’s analysis of Singapore’s market potential as it ponders international expansion. This follows a recent exploration in Japan, where FBOE signed a memorandum of understanding with an undisclosed concrete company.
<figure id="attachment_158060" aria-describedby="caption-attachment-158060" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-158060" src="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An.jpg" alt="Photo of Sungmoon An, CEO of FBOE, during an interview on October 29 at SWITCH 2025." width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158060" class="wp-caption-text">Photo of Sungmoon An, CEO of FBOE, during an interview on October 29 at SWITCH 2025. Photo by KrASIA.</figcaption></figure>
<h3>South Korean startups deepen interest in Singapore’s market</h3>
Deeplant and FBOE are just two of 31 South Korean startups that exhibited at this year’s SWITCH as part of a program organized by KISED. The initiative was carried out in collaboration with the K-Startup Center and supporting bodies including the Busan Startup Investment Agency, Daejeon Technopark, the Pohang Technopark Foundation, and Startup KAIST.
In a memo shared with KrASIA, KISED noted that this year’s SWITCH contingent was its largest since 2022, yet it represents only a snapshot of the growing interest among South Korean startups in Singapore. Over the past five years, KISED said, more than 100 South Korean companies have entered the Singapore market. The organization attributed this trend to Singapore’s appeal as a global business hub and the mounting pressure on South Korean startups to expand overseas amid intensifying domestic competition.
The organization also highlighted South Korea’s strong R&amp;D capabilities and its track record of producing startups agile enough to identify and seize international market opportunities.
SWITCH is one of several international events that KISED supports to help startups connect with potential partners and investors.
Deeplant’s Choi spoke positively of KISED’s role: “KISED’s program is very helpful, and they are getting better,” he said. “This time, I was able to meet a lot of [investors] and have one-on-one meetups, so I think they are trying very hard to help us, support us.”
Building on its participation in SWITCH, KISED plans to further expand its activities in Southeast Asia. Ultimately, its goal is to position Singapore as a launchpad for South Korean startups entering the region while fostering mutual growth between Southeast Asia and South Korea’s innovation ecosystems.
This article was published in partnership with the <a href="https://www.kised.or.kr/_eng/">Korea Institute of Startup and Entrepreneurship Development (KISED)</a>.

At SWITCH 2025, Singapore stands out as South Korea’s new startup gateway

Singapore

South Korea

Southeast Asia

… walls" and not be afraid "to speak up, to find your voice."
Yet Chinese women directors who have found box office success have largely hewed to centering their stories on female characters and their everyday lives rather than taking on political themes directly.
Jia Ling's 2021 debut, Hi, Mom, is a prime example. A comedic fantasy about a young woman who travels two decades back in time to befriend her mother as a peer, the film took in RMB 5.42 billion (USD 758.8 million) at the box office, setting a global record for a movie directed by a solo female that stood until the arrival of <a title="" href="https://asia.nikkei.com/business/media-entertainment/in-china-barbie-moves-women-to-tears-triggers-men-to-walk-out" target="_blank" rel="noopener">Greta Gerwig's Barbie</a> in 2023.
The touching but funny Send Me to the Clouds, which stars Yao Chen, was more provocative, depicting Yao's character exploring her sexuality after being diagnosed with ovarian cancer.
"The audience for that film was about 50-50 male-female, but I was asked by men why the men in the film are imperfect," said Yao on the sidelines of the Shanghai festival.
"They're not the characters that they had become used to watching on Chinese big screens: perfect men, in films about the greatness of men, about manhood," she said. "In a lot of the films you see now, there is no longer that sort of infallible male character, and that reflects the market's needs."
Last year's Her Story also pushed the envelope, argued Esther Li, co-founder of the new Hong Kong-based production house Mirage Films.
"I can now see in Chinese films a lot of topics regarding feminism, independent women [and] maybe women's struggles," she said at the Busan International Film Festival in September.
"These kinds of topics are being explored more, and I think maybe the women filmmakers have also been encouraged by the whole environment, not just to make films in China but to expand their horizons and look to international co-productions," Li said. "Both festivals and potential investors [have been] really more and more focusing on women's topics."
Li co-produced Whisperings of the Moon, which had its world premiere at Busan. The film, which marks the directing debut of China's Lai Yuqing, is set in Phnom Penh, features a local cast and follows the on-and-off relationship of a female actor and a married woman.
"It's always going to be hard to get a film made—that is the nature of the business—but there are signs of hope for us all," Li said.
Speaking alongside her, Lai said, "Making films is so hard, but throughout our production I felt all the women involved, all the team, were united by the desire to tell stories about women."
Hailing from the northern port city of Tianjin, Lai acted and studied art and film in New York, Los Angeles, and Toronto before returning to Asia to try her hand at directing features.
"I know now, going forward, there will be lots of challenges to doing a second film," Lai said, "but that won't stop me from trying because I can't stop now."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/big-in-asia/chinese-women-s-market-power-brings-their-stories-to-the-big-screen">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Chinese women's market power brings their stories to the big screen

Entertainment

Video

Creative

Content

Creator Economy

Shuai Shuai Fireworks is what happens when six young entrepreneurs from China’s northeast set out to reinvent one of the country’s oldest industries.
Founded in 2023 by six men born after 2000, the startup is led by Wu Mingyang, who grew up surrounded by fireworks. Wu’s father was a distributor in Heilongjiang.
“I’ve been tagging along with my dad to sell fireworks at retail terminals since I was a kid,” Wu recalled. Although he studied financial management in college, he chose to return to an industry that had always been part of his life.
Together with five childhood friends, Wu traveled from the northeast to Liuyang, Hunan, the capital of China’s fireworks industry, to launch their first venture. Each co-founder brought different skills, from computer science and accounting to civil engineering and sports. They divided responsibilities across management, product selection, design, and sales.
Their decision to base the company in Liuyang was natural. The city is recognized as the heart of China’s fireworks production. As the saying goes, “For Chinese fireworks, look to Hunan. For Hunan fireworks, look to Liuyang.”
According to official data, Liuyang is home to 431 fireworks and firecracker manufacturers. In 2024, the city’s fireworks industry recorded an output value of RMB 50.22 billion (USD 7 billion), accounting for about 60% of China’s domestic market.
As a young startup, Shuai Shuai Fireworks adopted a contract manufacturing model to lower costs and ensure production safety. Even without its own factory, the company achieved annual sales exceeding RMB 10 million (USD 1.4 million) in its first year. Wu said its sales network now spans multiple provinces, with Shandong and Liaoning emerging as top-performing markets.
While Liuyang’s fireworks sector remains vast, Wu noted that many local producers are small and compete mainly on price, leaving little room for profit. To stand out in a crowded, commoditized market, Shuai Shuai Fireworks chose to innovate through design.
The company now offers more than 100 SKUs featuring both traditional and modern designs. Its flagship line integrates landmark architecture and cultural symbols from major Chinese cities into its packaging.
Wu cited a few examples: the “Beijing” edition uses red and gold to evoke tradition and prosperity; the “Harbin” edition features icy white tones; and the “Shanghai” edition glows with blues and purples.
Such creative packaging has drawn attention from distributors and manufacturers at provincial trade fairs. “When we arrived in Liuyang in 2023, most packaging was bright red or purple with slogans,” Wu said. “We decided to introduce cartoon-style and artificial intelligence-generated designs to elevate the perceived quality. Since fireworks are emotional purchases, better packaging naturally leads to higher prices and stronger margins.”
The team also sought to solve the industry’s longstanding “blind box problem.” Buyers traditionally had to guess what fireworks would look like from the images on the box. Shuai Shuai Fireworks added QR codes to its packaging, allowing customers to scan and view a video of the actual display.
Addressing concerns over fireworks bans in some cities, Wu said the company mainly targets lower-tier and rural markets, where demand remains strong. “People in small towns and villages still prefer real fireworks,” he said. “Electronic ones just don’t feel festive enough.”
Liuyang’s fireworks are sold not only across China but also around the world. The city is the world’s largest fireworks manufacturing and export hub, home to more than 400 production companies that generate over RMB 50 billion (USD 7 billion) in annual output. It accounts for nearly 60% of China’s fireworks exports, firmly establishing its position at the center of the global pyrotechnics industry.
Wu said Shuai Shuai Fireworks has already obtained the necessary certifications for overseas sales. “Barring any surprises, international markets will definitely be part of our future plans,” he added.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3517393577516169">article</a> was written by Zhong Yixuan for 36Kr.

Six Gen Z founders are reinventing China’s century-old fireworks trade

Consumer Economy

… with diversification.
At the end of 2024, Wancheng launched Laiyoupin, a community-focused discount supermarket. Then, in January, it expanded its Haoxianglai business beyond snacks into daily essentials like personal care, fresh produce, and frozen goods. By March, its new-format stores debuted, featuring in-house bakeries and fresh fruit counters. Wancheng’s prospectus states that Laiyoupin will focus on building private-label brands, targeting premium SKUs and margin improvement.
Busy Ming responded in February with its own private-label strategy, introducing its own value-focused products and high-quality goods. A new store format soon unfolded, featuring household goods, stationery, and ready-to-eat foods, positioning itself as a one-stop discount supermarket.
Industry consultancy Frost &amp; Sullivan estimates that by 2029, China’s bulk snack market could reach RMB 5 trillion (USD 700 billion). As retailers add fresh foods, household products, and even tobacco sales, they may encroach on the territory of 7-Eleven and FamilyMart.
Interestingly, Japan’s convenience stores are facing similar disruption, as low-cost drugstores and mini markets simultaneously grapple with inflationary pressures. China’s bulk snack retailers may eventually evolve into small-format, community-based supermarkets.
However, history offers cautionary tales. Over the past two decades, companies such as Yonghui Superstores, China Resources, and Hema (known internationally as Freshippo) all struggled with the high costs of fresh food logistics and urban rents when experimenting with community-based retail.
Still, one thing is clear: China’s booming bulk snack market has become a testing ground for the next generation of retail chains. As economies of scale and low prices lose their edge, success may hinge on returning to fundamentals: understanding consumer needs, strengthening supply chains, improving product development, and enhancing operational efficiency.
The lesson comes poignantly from Pangdonglai, a traditional supermarket that is redefining service quality.
As of September, Busy Ming’s store count had surpassed 20,000, while Wancheng reported coverage across 29 provinces. Yet as store density rises, average per-store revenue is starting to fall. The industry’s growth ceiling, and its moment of reckoning, may arrive sooner than expected.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3521251300105090">article</a> was written by Xie Yunzi for 36Kr.

For Wancheng and Busy Ming, Mixue’s success is both a blueprint and a cautionary tale

Retail

… another US startup, has shifted from making its own vehicles to licensing its self-driving technology, but a spokesperson said that it still sees "strong potential" for autonomous delivery applications.
Neolix is betting that China's huge size, a willingness by delivery companies to adopt new technologies and a government push to lead the <a href="/industry/ai">artificial intelligence</a> race will keep it ahead of rivals. "We will have the advantage of the data, the advantage of algorithms, that we will leverage to roll out the fleet globally," Zhao said.
This article first appeared on <a href="https://asia.nikkei.com/business/technology/tech-asia/china-races-ahead-in-robovans-even-as-autonomous-delivery-challenges-remain">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China races ahead in robovans even as autonomous delivery challenges remain

Transportation

Autonomous Vehicles

Logistics

Mobility

… outcomes.
Innovent said it remains closely aligned with Takeda on IBI363’s development roadmap: starting with monotherapy for PD-1-resistant patients, then expanding into combination therapies, and eventually targeting first-line colorectal and non-small cell lung cancers.
Still, the company’s ambitious vision depends on one uncertain factor: Phase 3 success. If the data fail to meet expectations, the upfront payment will have effectively bought a share of high development risk. Combined with weakening investor enthusiasm for BD deals, that may explain why Innovent’s share price barely moved despite the blockbuster announcement.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3521459482532739">article</a> was written by Hu Xiangyun for 36Kr.

Innovent’s tie-up with Takeda tests investor faith in China’s biotech dream

Deep Tech

Biotechnology

Japan

… understanding based on respect, trust, recognition, encouragement, and kindness. With that foundation, everything is easier to execute.
<h3>36Kr: What cultural gaps existed before?</h3>
WS: Yonghui’s culture has always been rooted in goodness and altruism, but rapid expansion diluted those values. Without cohesion, you lose consistency and efficiency.
That’s why I emphasize culture. What matters is whether every action aligns with our values. Over the past year, we’ve rebuilt that alignment, which now supports systems like the five-color card, customer service, and quality control.
Culture is the soil. Once it’s healthy, everything grows straight.
<h3>36Kr: Understanding is one thing, execution is another.</h3>
WS: True. But Yonghui’s people have strong integrity. Even when our culture weakened, they still valued goodness. Now that our cultural compass is clear again, execution has become our strength.
<h3>36Kr: At 34, you’re still young, but it looks like the job’s already giving you gray hair. Ever feel close to breaking down?</h3>
WS: Not really, but the challenges are constant. Yonghui’s issues are complex and unique, so we have to think deeply and solve them one by one.
<h3>36Kr: So, has Yonghui made it through the crisis?</h3>
WS: Yes. Everything’s moving according to plan. The large-scale store closures have ended, marking the completion of our first reform cycle. We’ve passed the danger zone. Of course, we’ll still adjust underperforming locations, but from now on, the process will be steady and dynamic.
At our peak, we were closing and transforming stores simultaneously—it was exhausting. But that phase is behind us. Going forward, we’ll focus on refinement. Over the next three to five years, Yonghui will enter a stable, confident new era.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3517188914945155">article</a> was written by Li Xiaoxia for 36Kr.

One year after Miniso’s takeover, where does Yonghui Superstores stand?

Miniso

East Asia

… for the driver’s interior handle.
In most models, this handle is not electronically controlled and opens the door directly when pulled. If trapped inside, occupants can use a window breaker to shatter the driver’s window, then pull the mechanical handle to escape.
If the door frame is only slightly deformed, a strong pull can still work, an engineer added. Mechanical handles remain the last line of safety.
Consumers can check whether a car has a mechanical handle by seeing if the handle can be pulled outward rather than just pressed or touched.
In late September, China’s Ministry of Industry and Information Technology released a draft of proposed national safety standards for automobile door handles for public comment. The draft stipulates that all vehicles must include both internal and external physical handle mechanisms. Once enacted, mechanical exterior handles will become mandatory across all models.
Still, if a crash is severe enough to deform the entire door structure, even the best design may not help. Ultimately, the foundation of safety remains simple: obey traffic laws and drive responsibly.
After years of prioritizing futuristic aesthetics and aerodynamic optimization, NEV makers appear to be refocusing on what matters most: safety. The evolution of the door handle may be just the beginning. Going forward, both automakers and consumers are likely to scrutinize every detail that affects vehicle safety.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3504331066071944">article</a> was written by Xu Caiyu for 36Kr.

Why car doors may fail to open after a crash, and how automakers can fix it

Electric Vehicles