Recently, the founder of Nongfu Spring, Zhong Shanshan, criticized Pinduoduo’s pricing system as a huge damage to the Chinese industry, pointing directly at the government for failing to intervene in low prices.
According to reports from Sina Technology, Interface News, and Beijing Business Daily, on November 19, Zhong Shanshan visited a navel orange industry park in Ganzhou, Jiangxi, and during a meeting discussed his views on live streaming with product sales, low-price e-commerce, and responded to various sharp issues.
Zhong Shanshan stated that Nongfu Spring has always been improving its pricing system. He emphasized that internet platforms have led to a decline in the pricing system, especially platforms like Pinduoduo, which he believes are a great harm to Chinese brands and industries. He criticized this behavior as not only driving out good money with bad but also as a negative industrial orientation. He further expressed that pricing determines industry orientation, and the government’s failure to intervene in such pricing is a dereliction of duty.
Zhong Shanshan emphasized that he would never engage in live streaming sales. He differentiated his business as vertically integrated while criticizing plain-type enterprises, mentioning, “My business is vertical, I have roots. I look down on entrepreneurs who do live streaming sales, you could create something more valuable.”
Regarding e-commerce platforms, Zhong Shanshan revealed, “I require e-commerce platforms not to charge more than 5% of sales. For this reason, even Alibaba came to see me. But I said, our main focus is on small stores, with so many couriers and delivery riders struggling in society, why should we compete with them?”
When discussing Chinese agriculture, Zhong Shanshan remarked that agriculture is a touchstone and that it is tough work. He expressed concerns about the allocation of research funds in agriculture, stating that despite Nongfu Spring’s extensive research efforts, they haven’t received a single penny.
Addressing the issue of weak consumer spending in China, Zhong Shanshan pointed out that spending or not spending is determined by the social security system. He explained, “If there is a good social security system, one is not worried about spending money because they will never go hungry.”
Zhong Shanshan also directed a message to Zhang Yiming, saying, “Today’s headlines, you control the platform and are a profit-making enterprise. You have the capability to control public opinion, so please abide by the rules of corporate civility because of this background.”
Zhong Shanshan called for algorithms to be transparent and accurately disclosed to the public. He stressed that there should be no standards that cannot be disclosed and insisted on all users being able to evaluate their significance. He urged Toutiao and Douyin not to use the so-called “safe harbor principle” to evade responsibility, particularly regarding actions that cause harm and defamation towards him. He requested the immediate removal of statements, images, and the cessation of infringement on a Chinese citizen.