A cheap business empire starting from mobile phones

Chapter 181 Consumption downgrade
"In order to avoid being said to be an advertisement for Pin Xixi, Pin Xixi was renamed as 'Meidolian', the book is completely different from Pin Xixi"

The reason for the price drop is simple. Commodity prices are essentially determined by market supply. If the supply of commodities is large, the prices will be low, and if the supply of commodities is small, the prices will be expensive. In addition, they are also easily affected by market demand fluctuations.

The supply remains unchanged, the market demand decreases, and the sales volume of products decreases. For the production plant, there are two choices, one is to sell at a lower price, and the other is to increase the value of the product to increase the competitiveness of the product.

Douyin and Kuaishou with 2165 million users, Huixin with 20 million users, and food delivery for all people, as well as local service platforms for all people covering 960 counties, districts and cities across the country, and [-] nationwide sites that light up China's [-] million land. With all the technology accumulation and human resources of Quanmin Technology, the "Meidolian" created by Liberate low-end manufacturing capacity, with the help of the "Meidolian" platform, dumped a large number of low-priced commodities across the country, impacting the Chinese daily necessities market.

Shock yourself.

It's a bit like a hundred years ago, Western industrial countries blasted open the gates of China with ships and cannons, and then used mature industrial systems to crush the labor in China's agricultural society, forcing labor to sell cheaper than machinery before they could be sold.

This is the case with 'Meidolian'. A large number of low-priced and high-quality products have entered the public's sight. Compared with supermarkets, stores, and other online shopping stores, they found that they are more than twice as cheap. 'Medolian' products, regardless of the original price products.

For these "original price" producers, if they still want to sell, they must either choose to lower the price or promote sales, or improve the quality of their own products to widen the gap with the quality of "Medolite" products, and take a differentiated route. Medium and high-end customers, give up low-end customers.

However, the majority of 'original price' producers do not have the ability to take the route of mid-to-high-end customers, so they can only passively lower their prices and fight a price war with 'Medolian'.

And when the price of one social link drops, other links also drop, such as the price of meat.

Pork is a bulk commodity, and its price is easily affected by various factors. When the price of daily necessities decreases, the money spent on daily necessities decreases, the disposable income of the people increases, and the spending on other non-daily consumption places increases simultaneously. More people Choose to buy meat to improve living standards.

When the demand is high, the butchers are out of stock every day, and the price is lowered—somewhat abnormally, the sales volume is good, and the merchant simply chooses to lower the price to make the sales volume better.

It does not conform to the principles of economics, but the main body of the market is human, and human beings tend to fall into subjective thinking, which is prone to conflict with economics.

The simplest example is Huaxia’s real estate. Using economic principles to analyze whether Huaxia’s real estate will fall or rise in the future is a slap in the face. Countless economists have tried to use economic theory to solve China’s real estate problems. Is it useful?
The more complicated thing is that in a certain Turkish country, the mainstream economic theory believes that the more interest rates are cut, the more inflation will be. The leaders of the Turkish country believe that high interest rates lead to high inflation, so they should cut interest rates. Turkey and modern economics must die?
No, Turkey is not dead, nor is modern economics.

The impact of "Beautiful Dominance" on China's daily necessities consumer market did not cause the economic order to collapse. On the contrary, without lowering the overall economic level, it lowered prices and increased the purchasing power of the people.

However, there is a lot of criticism on the Internet about this phenomenon, thinking that low prices are harmful to the country, consumption is downgraded, and the national technology is a big sinner.

"The business model of Quanmin'Beautiful Price" is to use a large number of user demands to force merchants to lower prices, and use users to kidnap merchants, so that merchants can only sell cheaply. This situation seems to be convenient for consumers, but in fact it will only disrupt Order and the business climate have long been detrimental to consumers."

"In detail, take laundry detergent manufacturers as an example. They need to do marketing, logistics, distribute profits to dealers, and spend money on brand advertising. The price of products cannot be lowered, and they can only make a profit by selling more than 40, but' Midolian’s online price is only 10 yuan, which has a price advantage that they cannot achieve. Consumers go to buy 10 yuan products, and their 40 yuan laundry detergent cannot be sold. Isn’t this killing them? This laundry What about the laundry detergent business? This low-price dumping is hindering the rise of the laundry detergent industry. Without them, whoever engages in research and development will rely on the inferior knockoff products of 'Meidolian'? Huaxia's daily chemical industry is over!"

"Also, the price reduction of 'Medolian' sounds good to develop the lower-level market, but in fact it is taking the lead to disrupt the business environment. It is easy to lower the price, but it is difficult to raise it. A large number of people are used to buying laundry for 40 yuan. Liquid, 'Meidolian' launched 9.9 a piece, so people who were used to buying laundry detergent for 40 yuan are no longer willing to spend 40 yuan to buy laundry detergent. How this makes the economy rise is not good for the country."

"The unreasonable price reduction of 'Medolian' is mainly due to Lin Shu, the monster of national science and technology, who is hypocritical and fake charity, but 'Medolian' will definitely oppress the merchants intentionally or unintentionally. This kind of model has overtaken Taobao and Jingdong, so it is inevitable to follow the trend and lower prices. If this is the case, the environment will be very bad. Merchants have to sell more things to earn the original money, and the wages paid to workers will not increase. If wages do not increase, prices will rise. , not to mention that no one will consume casually, and there are very few people who go out to consume and sing K, and the surrounding service industry is even worse. This is a vicious circle. China has such a large market of 14 billion people, but in the end they have to find the market, and the internal demand is not enough!"

"In short, everything has two sides. The price reduction is to make more people afford things, but at the same time it is also a deterioration of the overall environment. The driving effect on the surrounding service industry is even smaller, making it difficult for more people to make money. If it is difficult to make money, you can only continue to downgrade consumption and enter a more vicious circle, so you can’t see the convenience of the bottom and have room for the vicious circle, and you can’t lose the big because of the small.”

Dissatisfied people on the Internet believe that the whole people's "Meidolian" dumps low-priced products, impacts the original order market, and forces other social product manufacturers to follow suit. Reversing the history, consumption downgrades.

What's more, the 'Medolian' under the leadership of Lin Shu has this ability. Lin Shu is a lunatic and a monster.

Generally, companies run a platform similar to 'Meidolian', and generally follow the path of a certain treasure ten years ago. Cheap is cheap, but fake products are rampant, and the quality is so low that it cannot be used. Even if the same sales volume is large, the impact on society is very low.

However, Quanmin'Meidolian' has its own logistics system, which can reduce logistics costs to ridiculously low prices, and solve the physical basis for low-priced dumping across the country. It also has Longji AI, the world's top artificial intelligence technology, to help quality control. To ensure low prices and qualified product quality at the same time.

This is outrageous.

For two products of the same quality, "Medolite" can make a quarter of the price of others and still make a profit. If others want to compete reasonably, they can only enter the "Medolite" platform to compete with small factories on price. Also sold very low.

This wave is that Quanmin Technology has applied the national mobile phone routines to other fields, bringing about changes in all fields at once.

If things go on like this, only those small factories with strong supply chains will be left in the market. The big factories will die out, a large number of workers will lose their jobs, the national economy will decline, and the industry will lose its way to rise.

Lin Shu is the great sinner of all ages.

Under these radical remarks, those who agree with them waved their flags and shouted, and those who disagreed raised rebuttals.

"Is the consumption upgrade really suitable for us? Although I am not a 'Medolite' user and I don't engage in the 'Chop a Knife' activity, I don't think the consumption upgrade is really suitable for us, so I won't say more about it."

"The market emphasizes the survival of the fittest. Since they are eliminated by the market, it means that they are not accepted by the society. If other manufacturers close down due to the impact of 'Medolyn', I think it is time to set off firecrackers to celebrate. The backward things should be eliminated, and the last ones left in the market The most suitable high-quality products for consumers, you use the mobile phone industry as an example, I also use the mobile phone to refute, do you think 'Medolian' can impact the market share of mobile phones for all people? Can it push Apple to withdraw from the Chinese market? Impossible, there is still a market for high-quality products, and people are willing to spend more money for high-quality products, but those cost prices are only a few yuan, and they can be sold for hundreds of yuan with a trademark. I only discovered it using 'Medolian', how much IQ tax I paid before, I thank Mr. Lin for bringing a strong wind and letting some monsters show their prototypes."

"I'm poor, and 'Medolian' can bring benefits, I save a lot of money, and I support 'Medolian'."

"I quite agree with the above. Consumers are willing to pay more for high-quality products. However, in reality, these high-priced products are not worth the high price. It is a forced price upgrade to match consumption upgrades, but the quality is poor. Clearly tell consumers that what they sell is of average quality, no brand, and products that meet this price. At least they have not deceived consumers, and they get what they pay for. I don’t think this is harming the country, it’s what promotes social development—speaking in a low voice, fear of being deleted, consumption upgrades are equal to consumerism to a certain extent, tempting you to buy things you can’t afford, the name is… Forget it, no mentioned."

"It's hard to understand those of you who think that your world is the world. There are differences and irreconcilable differences in this world. There is a market for 'Meidolian' low-priced products, which will have an impact on the current daily necessities market, but they cannot impact it. In the mid-to-high-end field, some people buy 'Medolite' 30 shoes, and people buy 300, 500, and 2000 shoes on the Internet, and these mid-to-high-end shoe factories will not close down because of the emergence of 'Medolite'. 'Medolite' just puts things on the table that you don't pay attention to. Before 'Medolite', 30 yuan shoes and [-] yuan laundry detergent still exist. Those who can surf the Internet will not go there. The urban-rural fringe."

It also involves some neutral opinions.

"The practice of 'Medolian' is indeed a kind of vicious competition. Low-price dumping will discourage the enthusiasm of industry practitioners. They will not make money and will not invest in the development of the industry. This is a fatal blow to Huaxia's manufacturing industry. It also leads to the concentration of the industry in only a small number of manufacturers. The high concentration of the industry means that the industry has entered the twilight period and has begun to decline. People, the impact on first- and second-tier cities is so-so, and it can’t be so absolute to say that low-price dumping completely leads to the end of the manufacturing industry. It may bring about a further division of labor in the industry, and I can’t make an absolute judgment.”

"Honestly speaking, I admire Mr. Lin's magnanimity. He is a great man who serves the country and the people. He has all the platforms in history. When they grow bigger, they will definitely tilt their heads. The reason is simple, because of the 80/20 law, when more than 20% of your income comes from 20% of the top sellers, and 20% of the top sellers only occupy 80% or less of the platform's energy, no platform will I refuse to do this, but Mr. Lin gives up 120% of the income that can be obtained with 20% of energy, and earns [-]% of the money with [-]% of energy. For the sake of a wider range of people, I am not ashamed of the malicious marketing of "Beautiful Dolian", and I have to I admire Mr. Lin, like some people who say 'I don't love money', but abandon low-end consumers only for money."

"Is consumption downgraded? There is too much noise on the Internet, and the media shouted 'China's manufacturing industry is over'. If this is the case, why didn't the government take action? The water inside is very deep. However, compared to consumption downgrades, I would rather I think this is a manifestation of the overall upgrade of China's consumption. Quanmin Technology's national mobile phone, Quanmin takeaway, Quanmin's home, and Quanmin's "Meidolian" have reduced the prices of Huaxia's electronic products, food, and daily necessities, and people can buy them with less money. More things, increased purchasing power, and the saved money can be spent in other places. As long as wages are not lowered and prices are lowered, it can actually promote the development of other industries. In the mobile phone industry, while ensuring high quality, the price of mobile phones is lowered, and smart phones are popularized in large numbers, so is the mobile phone industry over?"

"Whether the low-price dumping of 'Medolite' is a consumption upgrade or a downgrade, I think that although the competition in the low-end commodity market is fierce, the entire market still shows a clear wave of consumption upgrades. 'Medolite' did not lead to consumption downgrade, but in To help China upgrade consumption, regardless of the complexity, it is an undoubted consumption upgrade for the 'grassroots'. Without 'Meidolian', the low-level people had limited purchasing power and could not afford computers, smartphones, and color TVs. After 'Medolian', 499 computers, 399 LCD large TVs, and 199 Simmons mattresses are now affordable for them. They have improved the quality of life that they could not improve before, and their lives are more colorful. This is for sure. It is the consumption upgrade. In any case, the masses have the most say. I don’t know whether “Medolite” will destroy or benefit China’s manufacturing industry. At least there is “Medolite”. The life of migrant workers in this big city A lot of happiness."

……

Lin Shu has always ignored the Internet controversy. He only needs to do his job well and make a good product.

But for this controversy, he posted a short video on Douyin for the first time.

Sitting in the office chair in the president's office, Lin Shu crossed his fingers and leaned his elbows on the table, and said slowly: "There is no need to argue about whether Midolin is a consumption upgrade or a consumption downgrade. Midolin is a gift that allows some people to have one more choice. , they can choose a job that is close to home, does not work overtime, and pays less, spends more time with their families and relaxes themselves, so please go get married!"

"All people's home is the best place for your marriage and love!"

(End of this chapter)