Summary of Key Points
After nearly a year of inactivity, Zong Fuli’s KELLYONE brand has launched a new low-priced product called “Guoren Bobo” fruit juice soda. However, the launch was exceptionally low-key, with no press conferences, endorsements, or marketing investments. Behind this decision lies a series of setbacks for Hongsheng Group: their attempt to break away from the Wahaha trademark and create a new brand, “Waxiao Zong,” failed due to resistance from distributors and damage to the supply chain. KELLYONE experienced a brief surge in popularity nine years ago thanks to celebrity endorsements but has since seen a steady decline. Now, the company is forced to rely on low-priced products to maintain its presence in the market. Distributors are reluctant to promote these new products due to pressure from inventory accumulation and deposit requirements, and several key executives have resigned, leaving Hongsheng in an even more awkward position than before.
Detailed Analysis
#### 1. The “Quiet” Launch of the New Product: Not Low-Key, but Lack of Confidence
The launch of Guoren Bobo was completely silent—no press conferences, no endorsements, and no advertising on platforms like REDnote or TikTok. Why? Previously, KELLYONE invested heavily in high-profile endorsements (with actors Wang Yibo and Chen Kun) and music festival promotions, but these efforts were short-lived. In 2021, sales soared by 70 times when Wang Yibo endorsed the brand, but this was due to fan support rather than product quality. Now, Hongsheng lacks both the funds to continue such marketing efforts and the confidence that the new product will be successful. They are simply trying to distribute it quietly in convenience stores in Jiangsu, Zhejiang, and Shanghai, fearing another failure that would damage their reputation.
#### 2. KELLYONE’s Nine-Year Journey: From “Star-Powered” to “Ignored”
KELLYONE has proven that relying solely on celebrity endorsements is not enough to build a strong brand. In 2021, monthly sales increased by 70,000 units with Wang Yibo’s endorsement, but consumers remembered the actor, not the product itself. Once the fans’ enthusiasm faded, sales plummeted. The problem lies in the fact that the brand failed to convert celebrity attention into genuine consumer recognition. The new product, Guoren Bobo, lacks unique selling points (either in taste or packaging), making it difficult to attract regular customers.
#### 3. The Waxiao Zong Fiasco
In 2025, Zong Fuli resigned from all her positions at Wahaha and tried to launch a new brand, “Waxiao Zong,” but distributors were uninterested. They rely on well-established products like Wahaha’s calcium milk and purified water for their profits and were unwilling to invest in a brand with no established reputation. Only a few regions (mainly Shanghai and Jiangsu) met the deposit requirements. Forty-one days later, Hongsheng gave up and decided to continue using the Wahaha brand. This attempt came at a high cost: suppliers hesitated to stock large quantities, raw material prices rose, capacity expansion projects were delayed, and payment collection slowed down, causing significant damage to the supply chain and distribution channels.
#### 4. Distributors: Too Busy with Old Products to Focus on New Ones
Distributors have no interest in Hongsheng’s new products. Wahaha’s sales decreased by 20% this year, leaving them with excess inventory to clear. Additionally, Hongsheng implemented a strict policy requiring additional deposits if sales fell (for example, a 1.5-fold increase for any shortfall). With already tight finances, distributors have no spare resources to promote an unknown product like Guoren Bobo.
#### 5. The “Hongsheng Group Produced” Label
The new products are labeled with “Hongsheng Group Produced,” but this is more for internal use than for consumers. It serves as a signal to distributors and regulators that Hongsheng can still produce its own products (previously, it mainly manufactured for Wahaha) and that the company is still operational. After various setbacks, including the failure of Waxiao Zong and employee disputes, Zong Fuli needs to demonstrate her ability to continue operating with a truly sold product.
Conclusion
Whether Guoren Bobo succeeds or not is less important than the fact that after nine years of experimentation—first with KELLYONE, then Waxiao Zong, and now this low-priced product—Hongsheng’s resources (channel trust, brand reputation, and funds) are steadily depleting. This 3-yuan juice soda seems more like a last-ditch effort to stay afloat than a strategic breakthrough.
(The entire analysis is presented in plain language, avoiding technical jargon and using everyday examples to explain complex business concepts, making it accessible to non-financial readers.)