A unique joint sales model was created, binding more than 3,000 first-tier distributors, 30,000 to 40,000 second-tier distributors, and Wahaha together. This extremely "closed sales" structure (where districts are demarcated between distributors with no cross-shipments allowed, and violators face severe penalties, including the revocation of distributor qualifications) has maintained a very stable pricing system within its distribution network. Additionally, Zong Qinghou's strict control over costs and the distribution system ensures that all distributors make a profit, thereby maintaining a loyal team of distributors.
Every year, tens of billions of yuan worth of beverage promotions and deliveries are completed by a single marketing center, which represents an efficient and centralized market management model. In case any link in this chain breaks, it could likely lead to a collapse. The management of distributors is also relatively strict: firstly, a deposit guarantee system is always enforced, adhering to the principle of payment before delivery; secondly, distributors are required to focus solely on Wahaha and not sell other competing brands; thirdly, severe punishments are imposed on violators who engage in unauthorized activities such as dumping prices or cross-regional shipments.