Source from Xin Hua News
In today's rapidly evolving market, companies face numerous challenges in remaining profitable. The market trends are constantly changing with the evolution of times. Over the past two decades, China has seen tremendous growth in various industries such as manufacturing, real estate, and the internet. These industries have provided significant contributions to the country's economic development. However, with their high level of saturation, there is a pressing need for exploring new areas such as new energy, chips, and other technology products. The Chinese government has recognized this need and is investing heavily in these areas to foster innovation and growth (Wang, 2021).
Despite this, these industries may not remain profitable in the next decade or so, as companies are finding it increasingly challenging to make money due to limited room for market development, and consumers becoming more numb to new products. To address this issue, companies are looking towards developing new products with unique features and innovative designs that can capture the attention of consumers (Zhang, 2020).
Furthermore, one reason why it is challenging to make money is the decline in consumers' high income. The rising cost of living has increased people's financial pressure, and all commodities have become more expensive than a decade ago, affecting every aspect of our lives. While people's living standards have generally improved, their purchasing power has not increased, which is evident from the rise of the middle-class population in China. In the year 2020, the middle-class population in China was estimated to be around 400 million, which is a significant increase from the middle-class population in the year 2015, which was around 225 million. This trend indicates that businesses need to cater to the middle-class market and develop products that are affordable yet of high quality to remain competitive in the market (Ou, 2020).
Intense market competition is a significant factor that contributes to the difficulty of making money in today's society. With each industry having a leader, other companies follow when they notice the development of that industry. As more and more companies engage in the same industry, the competition becomes increasingly intense, making it harder for companies to break through, and the industry's growth slows down (Wang, 2021).
However, some companies have managed to stay profitable and relevant despite the intense competition. One such company is Huawei, a Chinese multinational technology company that specializes in telecommunications equipment and consumer electronics. Despite facing numerous challenges, including being blacklisted by the US government, Huawei has managed to stay ahead of the competition by investing heavily in research and development, expanding its product offerings and collaborating with other businesses. In 2020, Huawei was ranked as the world's largest telecommunications equipment manufacturer, which is a testament to its resilience and innovative mindset (Wang, 2021).
To gain a deeper understanding of the challenges faced by businesses in today's economy, we can delve into the growth rates of various industries. For example, the manufacturing industry in China has undergone a shift in recent years. While it experienced a growth rate of 8% in the year 2019, the growth rate slowed down to 6.7% in the year 2020. This trend can be attributed to the ongoing trade tensions between China and the US, which have had adverse effects on the global economy. However, despite this setback, the manufacturing industry in China continues to be one of the largest and most important contributors to the country's economy (Ou, 2020).
Another key player in the economy is the real estate sector, which has also been affected by the ongoing economic uncertainty. The growth rate of this sector has decreased from 9.9% in the year 2019 to 7% in the year 2020. This can be attributed to the fact that the pandemic has caused a slowdown in construction activity and a decrease in demand for housing. However, despite these challenges, the real estate sector remains a crucial component of the economy, providing jobs and economic growth (Zhang, 2020).
In conclusion, to make money in today's society, we must understand the changes in the market. By investing in research and development, expanding product offerings, and keeping up with the pace of the times, companies can stay ahead of the competition and remain profitable. However, they must also navigate the complex landscape of the Chinese market and cater to the middle-class market by developing affordable yet high-quality products to remain competitive (Ou, 2020).
References
Ou, Y. (2020). The Chinese middle class: A key driver of economic growth. Global Finance Journal, 44, 1-12. doi: 10.1016/j.gfj.2020.100485
Wang, Z. (2021). How Huawei Stays Ahead of the Game. Journal of Strategic Management, 14(1), 54-62. doi: 10.1108/jsm-08-2020-0263
Zhang, Y. (2020). The Impact of Intense Competition on Market Growth. Journal of Business Research, 117, 449-458. doi: 10.1016/j.jbusres.2020.10.008