economy - How to beat Coca Cola and Pepsi

Zong Qinghou, the outspoken chairman of the Wahaha group in Hangzhou, favorite guest at many conferences, made it into the publication of Wharton Business School and again explains vividly how he is conducting his business.
Wahaha is the largest producer of beverages in China and a potential threath for the world's leaders Coca Cola and Pepsi. Or not? (A tip from Danwei.)

Zong: We have lower costs than Coca-Cola, and so we have higher profit margins. The combined profits at both Coca-Cola and Pepsi are lower than ours. They have a bigger market share than we do. But our total profits are higher than theirs. We make everything ourselves. They send expatriates here to be managers. So they have very high labor costs.