Many people haven't clearly understood the essence of anti-involution. Let me give an example that will make it clear.

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

During involution, some companies are willing to sell it for 999 yuan, and Xiao Wang decisively buys it. Xiao Wang's needs are satisfied, and the company sells its 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. Xiao Wang's need still exists, but the company's product hasn't been sold, 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, Xiao Zhang wants to buy a villa. These are all demands. We are still a developing country, and there is no problem of weak demand.

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

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

$Midea Group (SZ000333)$