Many people haven't seen the essence of anti-involution clearly; let me give an example for better understanding.

Xiao Wang has a budget of 1000 yuan and wants to buy an air conditioner.

During involution, there are companies willing to sell it for 999 yuan, and Xiao Wang decisively buys it. Xiao Wang's need is satisfied, and the company sells the product, but selling the product doesn't necessarily mean making a profit.

When there is no involution, the company has agreed on a minimum selling price of 1299 yuan. Xiao Wang hesitates and ultimately doesn't buy it; his need remains, and the company's product doesn't sell, leading to inventory backlog.

Now everyone should see where the problem lies.

The domestic demand is very strong; Xiao Wang wants to buy an air conditioner, Xiao Li wants to buy a car, and Xiao Zhang wants to buy a villa. These are all demands; we are still a developing country, and there isn't a problem of demand fatigue.

So where is the problem? With this 1000 yuan, if Xiao Wang had a budget of 1500 yuan, he would buy the air conditioner for 999 yuan during involution, and he would still buy it for 1299 yuan when there is no involution.

Therefore, improving the budget is the key to solving the problem.

$Midea Group (SZ000333)$