What is the concept of market saturation?

Market saturation refers to the ratio of the current total market sales of a product to the market potential.

Through the investigation and analysis of market share and the number of competitive shops, the market saturation can be preliminarily determined. The analysis of market saturation is related to many aspects of market development. High saturation market has high development cost and low profit; The low saturated market has low cost, but the customers are unstable. Market saturation will also affect the level and difficulty of store prices.

Therefore, in the case of high market share and high market saturation of competitors, it will increase the cost of opening a store and increase the management difficulty after opening a store.

Extended data:

Because the price base of China products is too low, even if China does not change its growth model, the future inflation factor can no longer be offset by "Made in China", not to mention the future price of China will be increased by "changing its growth model and the value of RMB". In this case, countries such as Europe and America can only prevent inflation through active defense. Even so, inflation in Europe and America may not be contained in the future.

In fact, we can attribute the excess money supply in previous years to "globalization", but when globalization develops to a certain scale, its potential disappears because of the expansion of the base, and its ability to "supernormally accommodate excess liquidity" is disappearing.

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