Nongfu Spring Founder Attacks Livestream Sales Model and Low-Price Platforms

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Nongfu Spring founder Zhong Shanshan

Zhong Shanshan, the billionaire founder of Nongfu Spring Co. Ltd., has criticized the livestream sales model and low-price e-commerce platforms such as Pinduoduo, arguing that they harm Chinese brands by lowering price systems and he called on the government to intervene.

Speaking on Tuesday during a visit to a navel orange factory in Jiangxi, he said: “I will never engage in livestream sales, and I distain those entrepreneurs who do so. Those businesses are flat, ours is vertical. We have roots, but they don’t.”

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Zhong Shanshan, founder of Nongfu Spring, criticizes low-price e-commerce and livestream sales, arguing they undermine Chinese brands and calls for government intervention.
He advocates against price wars, highlighting the impact on quality and profitability, while urging companies like ByteDance to act responsibly.
Other business leaders, like Ye Guofu, echo Zhong's views on the negative effects of low pricing, whereas platforms like Pinduoduo face merchant backlash over aggressive pricing policies.

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Who’s Who

Nongfu Spring Co. Ltd.: Nongfu Spring Co. Ltd., founded by billionaire Zhong Shanshan, is a prominent Chinese bottled water company. Recently, it has faced price pressure with retailers selling its products at discount prices, which Zhong criticizes as harmful to brand quality. The company has also dealt with public scrutiny, including a boycott and allegations about its founder and products. It took legal action in May against individuals spreading false rumors about the company.

Pinduoduo: Pinduoduo is a low-price e-commerce platform referred to as the "king of low prices" in the article. Merchants have increasingly protested its cross-border platform, Temu, due to aggressive pricing controls and excessive fines, leaving no profit for sellers. Critics argue that these practices harm product quality, stifle innovation, and damage Chinese brands by lowering price systems.

ByteDance Ltd.: ByteDance Ltd., founded by Zhang Yiming, operates platforms like Douyin and Toutiao in China. Zhong Shanshan, founder of Nongfu Spring, urged Zhang to use these platforms responsibly due to their influence on public opinion, emphasizing the need for corporate responsibility.

Miniso Group Holding Ltd.: Miniso Group Holding Ltd. is a consumer goods retailer whose founder and CEO, Ye Guofu, advocates for competition based on quality, innovation, and products rather than low pricing. Ye argues that excessively low prices harm consumers, businesses, and society by compromising product quality and stifling innovation.

Hangzhou Wahaha Group Co. Ltd.: Hangzhou Wahaha Group Co. Ltd. is a rival beverage company to Nongfu Spring Co. Ltd. The company's founder, Zong Qinghou, was mentioned in the article in relation to a memorial service that Zhong Shanshan attended, which sparked discussion about their long-standing competition. This rivalry led to online attacks against Zhong and a boycott of his company, Nongfu Spring.

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What Happened When

Since late 2023：: Several protests against Pinduoduo's cross-border platform Temu began, with vendors criticizing its aggressive pricing controls.

February 2024：: Zhong Shanshan attended the memorial service for Zong Qinghou, sparking renewed discussion about the competition between Nongfu Spring and Wahaha, and led to online attacks and a boycott.

May 2024：: Nongfu Spring took legal action against individuals accused of spreading false rumors about Zhong Shanshan and the company's products.

October 29, 2024：: Ye Guofu called for competition focused on quality, innovation, and products, warning against excessively low pricing.

November 19, 2024：: Zhong Shanshan criticized livestream sales and low-price e-commerce platforms during his visit to a navel orange factory in Jiangxi.

November 20, 2024：: At an event in Xinfeng, Jiangxi, Zhong urged ByteDance founder Zhang Yiming to use platforms like Douyin and Toutiao responsibly.

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