Finding Development Opportunities from "Shortcomings" Product | Track | Opportunities
Innovation can be the upgrade and replacement of existing products, or it can be opening up new tracks and fields
Not long ago, macroeconomic data for May was released, and the overall economic operation continued to recover. At the same time, industrial production still faces certain pressures, mainly due to insufficient domestic demand, a decrease in industrial product prices, and sluggish production in some industrial industries.
Insufficient demand has a profound impact on the real economy and must be highly valued. Multiple measures should be taken to strengthen demand side management, including enhancing consumption capacity, improving consumption conditions, increasing consumption scenarios, facilitating investment mechanisms, and enhancing investment willingness. It should also be recognized that demand and supply complement each other, and addressing insufficient demand also requires starting from the supply side, supporting and guiding enterprises to optimize products and services, and creating effective demand with high-quality supply.
From the perspective of supply and demand, there are roughly two reasons for insufficient demand. One is an oversupply. For example, in the past few years, industries such as steel, cement, and glass had overcapacity, far exceeding market demand. The second issue is poor supply, making it difficult to meet effective demand. For example, although some electronic products such as mobile phones and computers are constantly being updated, the performance and user experience of new products are not significantly improved, making it difficult for consumers to generate purchasing desire, resulting in a phenomenon where the consumption frequency is significantly lower than the supply iteration frequency.
Identifying problems requires targeted treatment. In response to the "oversupply", it is necessary to do a good job of "subtraction", resolve excess production capacity, and return the supply-demand relationship and market order to a reasonable level. In response to the "poor supply", it is necessary to do a good job of "addition" and seek a way out through innovation.
Innovation can be the upgrade and replacement of existing products. Currently, the new generation of technological revolution and industrial transformation are accelerating their evolution, with new technologies, processes, materials, and equipment constantly emerging. Some children's product companies have made cross-border innovations, using honeycomb aluminum materials originally used in the aerospace field to produce child safety seats for use in cars, effectively improving the safety performance of the seats. Many equipment manufacturing enterprises use new energy technology to green transform traditional equipment, reducing energy consumption and pollution, and are welcomed by customers. It can be foreseen that technology empowers thousands of industries, and production lines, equipment, and materials can be improved, continuously giving rise to new functions and products, bringing new markets and development to enterprises.
Innovation can also be opening up new tracks and fields. For many segmented fields, their market share is relatively fixed due to objective laws. In this situation, enterprises need to open up more growth points. From the perspective of entering new fields, although the frequency of smartphone replacement is gradually decreasing, the market for new products such as virtual reality, wearable devices, and smart speakers is far from saturated. Many mobile phone companies have appropriately expanded their business scope, effectively enhancing market competitiveness and risk resistance. From the perspective of expanding new markets, the rural market space for new energy vehicles is vast. With the favorable policies of new energy vehicles going to the countryside, automobile companies can launch products that are more in line with rural application scenarios and user habits, which will undoubtedly accumulate new growth momentum.
Dialectically speaking, the more industry demand is insufficient, the more enterprises can stand out through innovation. With the competition of thousands of sails in the industry, the market can emerge with vitality, thereby achieving a higher level of dynamic balance and virtuous cycle between supply and demand. In this way, the advantage of China's super large scale market will be fully utilized, the vitality of the Chinese economy will be more abundant, and the prospects for the vast number of enterprises will also be better.
