Hou Xiaohai: If Beer as a Consumer Product is Abandoned by the Young, There Will Be No Possibility for Development

From December 5th to 7th, the "2025 China Entrepreneur Influence Annual Conference" (formerly known as the China Enterprise Leaders Summit) was held in Beijing, themed "Emergence · Infinite—Co-Creating the New Form of Intelligent Business." Hou Xiaohai, former Chairman of the Board and Executive Director of China Resources Beer, as well as Chairman of the Financial Committee, attended and delivered a speech.

Hou Xiaohai introduced the concept of the "New World" in his speech. He recalled that in 2021, while serving as CEO of China Resources Beer, the beer industry was undergoing a significant transformation. The competitive edge of enterprises was diminishing, business growth faced mounting pressure, and existing products and services were increasingly abandoned by consumers. Achievements once taken pride in—such as China Resources Beer operating 100 factories and surpassing 10 million tons in sales—no longer seemed to align with the era's main theme.

Thus, in 2021, he began contemplating how to revitalize growth, drive transformation, and reshape a new strategic landscape for China Resources Beer. "At that time, I found a term—'New World,'" he said.

He recounted being struck by a quote: "We must not only be adept at breaking the old world but also skilled at building a new one." This revelation led him to question whether China Resources Beer was still entrenched in an outdated beer industry while failing to recognize the arrival of a new era—hence the birth of the term "Beer New World."

Over a year later, Hou expanded the concept to the "Business New World." Beyond beer, many enterprises in industries like beverages and food had entered a new era marked by significant transformations, particularly in three key areas:

First, the external environment for businesses, products, and brands has drastically changed. Companies must recognize this shift to avoid falling behind.

Second, technological advancements have accelerated rapidly. While technology drives progress for humanity, it presents a double-edged sword for businesses—offering opportunities while also posing disruptive threats. Many traditional business models risk being overtaken by new technologies.

Hou highlighted the rapid rise of artificial intelligence, citing "lights-out factories" that operate without human workers. He noted that in 2016, a China Resources Beer factory with a capacity of one million tons employed at least 500–600 people. The swift pace of technological change has profoundly impacted business operations, management, and organizational structures.

"For us, technology is more of a challenge than an opportunity," Hou reflected. "If adopted too quickly, early implementations may soon be outpaced by newer technologies, leaving late adopters at an advantage. I don’t know how to navigate this, but I know it will deeply reshape our lives, companies, and industries. The challenge lies in survival—how to embrace and harness it."

Third, the consumer demographic has shifted dramatically. Over the past decade, the core consumer base for many products has undergone a generational turnover—a major pain point for China Resources Beer in product design.

Hou explained that while individuals born in the 1960s and 1970s share 90% commonality, the overlap with those born in the 1990s drops to 70%. Today, Generation Z shares less than 50% commonality with the 1960s cohort. The current consumer base differs by over 50% from that of a decade ago—representing a truly new generation with broader perspectives, independent thinking, unique aspirations, and distinct values and consumption habits.

Hou emphasized that understanding this new consumer demographic is critical—and a significant challenge. "Sometimes failure isn’t due to one’s own shortcomings but being abandoned by consumers because of disconnection."

He also mentioned China Resources Beer's past brand slogan, "We Made for Young," underscoring its commitment to appealing to younger generations. "If a consumer product like beer is abandoned by the young," he stressed, "there will be no possibility for development."