In the current global economic context, expanding abroad is no longer optional for Chinese private enterprises—it is an essential move. With China's CPI remaining below 1% for over 20 months, and even turning negative in the past five or six months, this highlights the severe inadequacy of domestic demand. Faced with weak consumer purchasing intentions and increasing price-cutting pressures from businesses, Chinese companies urgently need to find new growth points. Exporting has become an important choice, but countries with trade surpluses with China, such as those in Europe and the U.S., may impose anti-dumping measures, anti-subsidy tariffs, and other restrictions on Chinese enterprises, making export a risky path. Therefore, expanding internationally has become a more reliable option, with fewer challenges compared to exporting, and is a critical undertaking for China's private enterprises.

2024 is widely seen as the year of transformation, marking the beginning of a new era that presents unprecedented development opportunities and challenges for businesses. In the β generation, companies must reassess and adjust their development strategies to break through intense market competition. In the past, the key to success was often copying and following trends, "fast replication," and focusing on scale. In the future, companies will need to "hone their internal capabilities," "deeply cultivate niches," and "target their efforts."

In the past year, artificial intelligence (AI) and industrial innovation have closely integrated with practical applications, driving transformation in several industries. According to the Hurun Research Institute’s "2024 Hurun China Metaverse Potential Companies List," Huawei, Alibaba, Baidu, China Telecom, and China Mobile were ranked in the "Top 5 Most Potential" companies.

The automotive industry is one of the key sectors where AI is being applied. He Xiaopeng, chairman and CEO of XPeng Motors, presented the "world's first AI car," the P7+, highlighting how, despite autonomous driving technologies being developed since 1925, AI has now advanced to the point where it can use "end-to-end" large-scale model training to learn from vast amounts of human driving visual data. This has greatly improved the human-like quality of driving strategies, enhancing both comfort and safety.

The rapid development of AI has profoundly changed the way business operations are conducted. AI is not only reshaping the relationship between companies and consumers but also injecting new vitality into the market. AI’s capabilities in data analysis, forecasting, intelligent planning, decision-making, information recognition, creativity, design, and self-iteration provide strong technological support for Chinese brands as they expand abroad.

In the context of globalization, Chinese brands face complex international conditions and market competition. However, with the progress of the Belt and Road Initiative, traditional Chinese products like Baijiu (Chinese liquor) have shown immense market potential in countries along the Belt and Road. Chinese brands must seize this historical opportunity and achieve internationalization by integrating with local cultures.

Expanding abroad for Chinese brands is not just about pushing products into international markets; it is also about exporting culture and spreading influence. The international expansion of brands like Moutai and Wuliangye has demonstrated the global potential of Chinese brands. In the β generation, Chinese brands need to continue investing in brand building, telling compelling brand stories, and enhancing their core competitiveness. They must adapt to different market cultures and focus on international youth, cultivating brand recognition and loyalty among young consumers.

Hurun Report has long tracked the development and transformation of Chinese brands. Moutai, as a leading brand in China's liquor industry, has a market value nearing 2 trillion yuan, with last year's revenue exceeding 150 billion yuan, marking an 18% year-on-year growth. It has been named "The Most Valuable Chinese Brand" for six consecutive years, and it is the only trillion-dollar brand. Moutai has embraced digital transformation, using the "iMoutai" platform to achieve sales of over 10 billion yuan, becoming a key engine for direct-sales revenue growth. In China, with a population of 1.4 billion, the most valuable brand is not a daily necessity but a high-end liquor, a truly unique phenomenon globally.

The Huangshan brand, one of China's key tobacco brands, has made remarkable achievements since its creation in 1958. Over the years, it has innovated with new product categories and a refined brand image, focusing on strategic implementation to position itself as an industry leader. Similarly, brands like Pianzihuang, which has topped the "Hurun China Most Culturally Significant Brands List" for three consecutive years, and Hengyuanxiang in the apparel sector, demonstrate the continued development and innovation of Chinese brands in traditional industries. Foshan Lighting, a key player in home lighting, highlights China's impact on improving quality of life.

Through the development and transformation of various industries, Chinese brands have shown great ambition. Hurun Report's lists and reports not only record but also encourage Chinese brands to continue strengthening their brand power and core competitiveness. Focusing on international youth and cultivating their consumer habits and brand loyalty is key for Chinese brands to establish a presence in global markets. As part of this process, Chinese brands must continue investing in brand building and cultural adaptation to achieve international recognition and leadership within the next 25 years, as young consumers grow into the core of society at the age of 55.

Since the emergence of the first generation of Chinese wealth creators in 1999, China’s wealth has become more transparent. In 2024, 41-year-old Zhang Yiming became the youngest Chinese billionaire, marking a milestone in China’s entrepreneurial history. His story reflects the entrepreneurial spirit and wisdom of China’s business leaders.

Every year, the release of the Hurun Rich List is a significant event in the business world, not only tracking the trajectory of wealth in China but also symbolizing the entrepreneurial spirit and intelligence of Chinese business leaders. As Hurun Report celebrates its 25th anniversary (1999-2024), it has witnessed the creation of Chinese wealth, the rapid development of the Chinese economy, and the transformation of countless Chinese entrepreneurs from unknowns to business giants.

The first generation of Z-generation entrepreneurs born in 1995 will turn 30 next year, entering the phase of career-building. The average age of entrepreneurs on the Hurun Rich List is 56, and 25 years ago, when Hurun Report was founded, they were about 31 years old, also in the process of building their careers.

We have witnessed these entrepreneurial pioneers create unprecedented paths with inspiration and courage. Among them are Chen Rui, chairman and CEO of Bilibili, who revolutionized the video portal industry; Wang Ning, founder of KEEP, who led a fitness revolution; Lu Yiwen, president of DR Diamond Rings, who innovated in the wedding jewelry sector; and Nie Yunchen, founder of HEYTEA, who redefined Chinese tea beverages. They have broken industry patterns with extraordinary innovation and leadership, guiding their companies to become "Cheetah," "Gazelle," and "Unicorn" enterprises, even entering the Hurun List and achieving entrepreneurial legends.

The history of wealth creation by these entrepreneurs not only showcases the vitality and potential of China’s economy but also conveys the innovative spirit and sense of responsibility of Chinese entrepreneurs. In the next quarter-century, Hurun Report will continue to be a witness and record keeper of changing times, observing the development of wealth and brands both in China and globally. We look forward to continuing to uncover business trends, lead wealth wisdom, and provide valuable insights and inspiration for entrepreneurs, investors, and all sectors of society.

In the wave of the β generation, Hurun Report will join forces with emerging business leaders and innovators to explore and shape a more diverse, intelligent, and sustainable business future. Let us wait and see how Hurun Report, with its outstanding influence, will continue to tell China's story and contribute Chinese wisdom in the next 25 years.