What does industry volume mean?

I have to admit that involution in the industry has become a common occurrence in real life. Under certain economic and social conditions, under the influence of fierce competition and insufficient market demand in a certain field, enterprises in the industry compete with each other, engage in vicious competition, grab market share from each other, and even engage in price wars and subsidy wars, which leads to excessive concentration of industry resources, broken industrial chain and intensified enterprise risks, and finally forms an unsustainable industry cycle.

Intra-industry involution is the result of many factors such as excessive monopoly of market share and insufficient market demand by leading enterprises. Especially in the era of digital economy, the rising speed of emerging enterprises is accelerating, the evolution speed of the industry is accelerating, and the possibility of involution in the industry is gradually increasing.

Reasons for the existence of industry volume

1. Market limitations. The source of market demand in the industry is only the enterprises in the industry, lacking broader market space, which leads to intensified competition among enterprises.

It's like there was only one large supermarket in our community before, which operated smoothly and was profitable. However, in a short period of one year, three newly opened supermarkets appeared in the community at the same time, and the normal operation of the three supermarkets, including profit, could not be supported within the fixed population of the community, so involution and price war appeared. Your price is low, I am cheaper than you, and your service is good. I can deliver goods to your door, but there is no innovation and change. I just dig endlessly in my original business, and the final result can only be to suppress my opponent with the price to see who can hold on longer and who can't hold on first.

2. Lack of policies and regulations. At present, for most domestic industries, the policies and regulations are not mature, and the cultivated industries do not even have a healthy competitive environment and fair market mechanism, which is easy to form intra-industry involution.

For example, the clean household appliances industry, which is currently in a rapid development stage, especially the emerging categories such as floor washers and cloth washers, has many difficulties in management and supervision due to the lack of relevant policies, regulations and standards.

For example, in 2020, Vanke Enterprise Co., Ltd. sued Changsha Wansen Decoration Materials Co., Ltd., which has the exclusive right to use Vanke floor trademarks, on the grounds of trademark infringement and unfair competition. Changsha Intermediate People's Court ruled in the first instance that the defendant Wansen Decoration immediately stopped trademark infringement, stopped unfair competition involved in the case, printed the newspaper to eliminate the adverse effects, and compensated the economic loss of 500,000 yuan.

In recent years, with the improvement of enterprise patent construction and the improvement of people's awareness of intellectual property protection, patent disputes in many industries have become more frequent. Especially when an industry is expanding rapidly, the problem of intellectual property rights is more prominent. Therefore, perfecting policies and regulations is the best way to make the industry more standardized and avoid involution.

3. The industry advantage is not significant enough. Some industries lack core technologies and outstanding advantages, and fierce competition among enterprises in the market leads to vicious competition represented by price wars and subsidy wars.

A simple example is the supermarket downstairs. Maybe he doesn't know how to innovate and change. He is just fighting a price war and competing with his peers. He has no obvious difference, finds out his own shortcomings and changes them, just attracts consumers with simple prices. He can highlight his own characteristics, weaken the price difference, and make his business smoother from another angle, such as more humanized services, more business projects, convenient for consumers around him, such as home delivery, providing some extra services for free, such as receiving express delivery, recharging mobile phones, and having more interaction with consumers.

4. The decline of consumer purchasing power. For mature industries, the purchasing power of consumers will gradually become a bottleneck to some extent, which will also add fuel to the fire of the industry.

How to crack the industry volume?

1. Improve industry norms. Government departments should improve the relevant industry norms, clarify the industry norms, raise the industry threshold, guide enterprises in the industry to operate according to law, and curb the development trend of the industry.

2. Strengthen the industry ecology. The government should guide high-quality enterprises to enter through policies, promote the intelligent and clustered development of macro-decision, and help enterprises build a healthy and orderly ecosystem.

3.？ Scientific and technological innovation. Enterprises should constantly improve their innovation achievements and scientific and technological level, create personalized products and services through advanced technical means and models, enhance their core competitiveness, and then reverse the trend of involution in the industry.

4. Protect consumer rights. It is necessary to establish and improve the protection mechanism for consumers, and guide enterprises in the industry to provide relevant products and services that meet the needs of consumers in accordance with market rules and ethical norms to meet the growing consumer demand.

In short, it is difficult to avoid involution in the industry now, but we can make appropriate changes and find new innovations to change the status quo of internal inspection. We can prevent and alleviate involution in the industry by improving industry norms, strengthening industry ecology, technological innovation and protecting consumers' rights and interests. Only in fair market competition can enterprises continuously improve their own strength, further expand and continuously promote the healthy development of the industry.