The 22nd anniversary of the Wahaha Group was diversified entrepreneurial development process

In 1987, the predecessor of Wahaha, known as the distribution department of the Hangzhou Shangcheng District Office-run enterprise, was established. Founder Zong Qinghou, along with two retired teachers, started with a loan of 140,000 yuan and began by distributing soft drinks, ice, and stationery. They earned every penny through consignment, marking the beginning of their entrepreneurial journey. In the second year, they started processing oral liquid for others, and by the third year, they set up the Hangzhou Wahaha Nutrition Food Factory. Guided by the traditional Chinese medicine theory of "medicine and food as one," they developed the "Wahaha Children's Nutrition Oral Solution" to address the issue of children not eating well. With its effective results and the famous slogan "Drink Wahaha, meals become fragrant," the product quickly gained popularity nationwide. By 1990, just three years after its founding, Wahaha had surpassed an output value of 100 million yuan, completing its initial capital accumulation. This economic success, starting from a small primary school-level business, attracted widespread attention from both society and government authorities. In 1991, with government support, Wahaha Nutritional Products Factory, which already had over 100 employees and a deposit of more than 60 million yuan, made a bold move by acquiring an insolvent state-owned canned meat factory in Hangzhou, paying 80 million yuan for 60,000 square meters of factory space and 2,000 employees. This acquisition marked the official establishment of the Hangzhou Wahaha Group, and the company began to expand into large-scale operations. In 1994, Wahaha joined efforts in supporting the relocation of residents in the Three Gorges Reservoir area. It acquired three struggling businesses in Fuling and established the Wahaha Fuling branch, bringing mature products, technology, and markets, along with strong financial backing and brand influence. The Fuling Company quickly became one of the largest enterprises in the region and ranked among the Top 50 Industrial Enterprises in Chongqing. Since 1997, building on the success of Fuling, Wahaha expanded further into western China, establishing more than 40 subsidiaries across 26 provinces and cities, including Yichang, Hubei, Hongan, Guangyuan, Jingyu, Changsha, Tianjin, Gaobeidian, and Chaohu Lake. These branches achieved significant economic returns, with foreign branch output accounting for nearly half of the group’s total. Wahaha not only acted as a "locomotive" for local development but also helped boost real estate sales and solidified its position as China's largest and strongest beverage company, achieving mutual benefits and win-win outcomes. Wahaha’s support and poverty alleviation efforts were recognized and praised by the Central Committee of the Communist Party and the State Council. Leaders such as Jiang Zemin, Li Peng, Wu Bangguo, Wen Jiabao, and Zou Jiahua visited the company. In 1996, Wahaha invested part of its assets in joint ventures with five international companies, including Danone, one of the world’s top food and beverage firms. Through these partnerships, they introduced advanced production lines from Germany, the U.S., Italy, Japan, and Canada, accelerating their growth and strengthening their national brand. In 1998, after over a decade of growth, Wahaha felt ready to compete globally. After two years of preparation, it launched "Wahaha Very Cola," a domestic cola aimed at challenging global giants like Coca-Cola and Pepsi. Despite initial skepticism, Very Cola quickly gained traction, with annual sales exceeding 600,000 tons. It formed a tripartite competition in the market, breaking the myth of Coca-Cola’s invincibility and inspiring confidence in China’s national brands. In 2002, Wahaha continued its mission of bringing health and happiness to children. It entered the children’s clothing industry, leveraging European and American design talent, first-class equipment, and premium fabrics. By adhering to international environmental standards, it opened 800 children’s clothing stores nationwide, becoming the largest children’s apparel brand in China. This marked a significant step in Wahaha’s diversification strategy, laying a solid foundation for future expansion.

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