Traditional Culture Encyclopedia - Traditional culture - This year's epidemic is much better than last year's, but why is business harder this year than last?

This year's epidemic is much better than last year's, but why is business harder this year than last?

In 2020, the country experienced a relatively serious epidemic of new coronary pneumonia, and the development of various industries will be affected to a certain extent. 2021, the probability of the occurrence of new coronary pneumonia in the country has been greatly reduced, but people find that this year's business is even more difficult than last year.

First of all, the improvement of the epidemic will make the number of people doing business increase dramatically, which will increase the competitiveness of various industries and the difficulty of sales. Second, the likelihood of people eating out and traveling is also increasing, and with many consumers wanting to buy good quality goods at good prices, vendors at many attractions will have to win through price and quality. Finally, the market is undergoing massive change, which tends to create a psychological state of moonlighting and difficulty in doing business.

The first reason: the number of people doing business has become larger, and the pressure of competition has become greater

The epidemic last year caused many people who wanted to engage in business to cut off the idea of doing business, and now that the epidemic has been effectively controlled, those who want to do business will open stores in the shortest possible time. When there are more and more people working in a certain industry, and there are more than five or six stores of the same type on each street, this results in stores facing great competitive pressure. People are faced with more choices and this leads to more reliable development programs and goods. Those very high price goods will not be accepted by everyone, and even merchants can not earn more profit.

The second reason: merchants minimize prices and earn very low profits

There will always be too many industry changes in every industry, which will lead to the merchants in every industry to play the price advantage. For example, before the cost of a bottle of Coke price of two dollars, the merchants of the sale price of three dollars and five, which leads to merchants can earn a profit of one dollar and five. Nowadays, merchants have reduced their profits, and a bottle of Coke can only earn a profit of fifty cents, so merchants can't earn more profits, and they get the feeling that business has become harder to do. However, if the merchants do not lower their prices, it is likely to cause consumers to go to other merchants to complete their shopping.

The third reason: reforms and innovations are taking place in all industries, and wages are proportional to prices

The improvement in the quality of life of the residents is reflected in all aspects of life, and people can earn higher wages, but people also need to take into account more external factors. Although most residents can get a higher wage, but the price of each commodity also shows a very large increase. Over time, the money earned by consumers can only cover normal expenses, and they are unable to purchase other goods with a large amount of money. Merchants can't earn bigger profits, and consumers find it hard to get a better shopping experience, which ultimately leads to many people finding it hard to do business.