From December 5 to 7, the "2025 China Entrepreneur Influence Annual Conference" (formerly known as the China Business Leaders Summit) was held in Beijing, themed "Emergence · Infinite—Co-Creating New Forms of Intelligent Business." Hou Xiaohai, former Chairman of the Board and Executive Director of
What are the multiple challenges we face today? Hou Xiaohai identified three key challenges:
First, fragmentation—the biggest challenge in the new era. Demand, consumer groups, products, services, scenarios, and experiences are all becoming increasingly fragmented. Even within the same industry, companies are diverging significantly. He noted that while the past business world was "unified," today's market requires diversification. "A single flagship product used to dominate the market, but now, alongside mainstream products, niche and personalized offerings are essential to capture scattered demand," he explained. "For example, the beer market now includes craft brews, tea-infused and fruit-flavored varieties, as well as different packaging sizes—something unimaginable just a few years ago."
Second, the restructuring of traditional business foundations in the new cycle. Hou pointed out that conventional distribution channels no longer suffice. "Even with excellent in-store displays and service, consumers now prefer ordering online via instant retail platforms, reshaping the entire supply chain." Additionally, while the top five beer companies hold over 90% of the market share, craft breweries and imported brands are disrupting this stability.
Third, internal competition (or "involution"). Hou emphasized that this stems not only from supply-demand imbalances but also from an obsession with scaling up. "The era of sheer growth is over—now, companies must focus on quality, brand strength, and sustainable business models," he said. Price wars and subsidies harm industries without resolving imbalances, worsening instability.
Despite these challenges, Hou highlighted new opportunities:
1. **Iteration**: Continuous improvement driven by technology, quality, and digital intelligence. 2. **Digital Intelligence**: "Over the next five years, digital transformation will be pivotal for the revival and growth of Chinese enterprises, especially consumer goods companies." 3. **Fragmentation Strategies**: Catering to personalized demand. 4. **New Management Philosophies**: - **Coexistence in Supply Chains**: Moving beyond competition to collaboration across industries and value chains. Examples include partnerships with retailers like Pang Donglai and Hema. - **'Three Refinements' Management**: Lean, streamlined, and meticulous operations to navigate tighter budgets. 5. **Green Development**: Treating sustainability as a competitive edge that reshapes production and enhances brand value.
Hou concluded that embracing these opportunities is essential for thriving in the evolving business landscape.
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