The Economic Situation Is Grim. Should We Lower Prices To Ensure Survival, Or Should We Stick To The Bottom Line Of Prices, Insist On High Investment And High Quality?

China's overall economic situation is actually slowing down and shrinking significantly. Except for battery reserves, the energy industry is still growing, and other industries are showing signs of weakness. More and more phenomena prove that we may have to tighten our belts to live a tighter life:

Phenomenon 1: Residents’ reserve deposits hit a new high

According to the latest first-quarter report released by the central bank, as of the end of March this year, the balance of household deposits reached 130.22 trillion, an official breakthrough of 130 trillion, an increase of 18.1% year-on-year. This shows that residents still prefer precautionary deposits and their desire for investment has decreased.This should not be a disadvantage for promoting the economy.

Phenomenon 2: Many factories began to lay off workers, cut wages, or even closed down

Because of the loss of foreign trade orders in many factories or many domestic technology companies began to optimize their teams, and a large number of employees.The hottest thing recently is Alibaba’s large-scale layoffs. This layoff started after the year-end bonus was distributed at the end of April. The overall optimization ratio is about 7%, and the compensation standard is N+1+1. In addition to Ali, NetEase Youdao, Wanda Group, 58.com and other large companies have laid off employees. Many factories in Guangdong mainly rely on exporting to the European and American markets. Due to various reasons, the factories have nothing to do, and they have laid off a large number of employees or directly closed down.

Phenomenon 3: The number of civil servants continues to increase, reaching millions

In recent years, the number of recruits for civil servants has continued to rise, and this year it hit a record high. The main reason behind it is still related to the current employment policy orientation, coupled with the three-year impact of the epidemic, the economy is sluggish, and employment is not guaranteed, and civil servant positions are the most stable type of employment options. There are stable expectations in terms of salary, life style, management system, and interpersonal environment.It has also become the job of choice for many young people.

Phenomenon 4: The real estate industry continues to slump, and more people choose to rent houses

After the epidemic, it is expected that housing prices will pick up. However, due to the economic downturn, unstable jobs, reduced income, and reduced people's desires, real estate is still a backwater. And those who have bought a house, facing long-term, high mortgages and shrinking income, have no confidence in real estate! In today's society, there are wars outside and economic depression inside, and they may be laid off anytime, anywhere, so young people choose the self-preservation mode of survival - if they have money in the bank, they will never buy a house! In addition, the cost of renting a house is low, and there is no long-term and high load burden, so more young people choose to rent a house.

Phenomenon 5: The birth rate has fallen off a cliff

Also because of economic pressure and the increase in divorce rate, as well as the influence of open values ​​on young people, more and more people choose not to marry, or marry without having children. They have abandoned the traditional idea that the older generation must pass on the family line, preferring to live a free life they pursue rather than being entangled by work, marriage, children, and money. Coupled with the pressure of the economy, they think that they can't live well, so how can they raise and educate their children well? So decisively choose not to have children or have fewer children

The above is a summary of the sluggish economy, so in this general environment, should we lower commodity prices in order to survive? Or stick to high-cost, high-quality products?

If you are a high-end product and a big brand in your industry, and already have a huge customer base and sales channels, customers must look for your brand to purchase, and products other than yours cannot be used, then you can continue to maintain high investment and high quality, And research and development and new product series have always been at the forefront of the industry. Because sales are not your concern!

If you are an ordinary product in your industry, and customers don’t buy your product, they can buy other products instead, and everyone is reducing the price to promote sales, then you must lower the price reasonably, keep old customers, and use new products and advantageous products Prices to attract new customers, improve the service quality of our team, and actively solve all doubts for customers, this is the long-term development of a company.