What do you mean by real estate upstream and downstream enterprises?

1. Upstream industry originally refers to the initial industry of the whole industrial chain, including the exploitation and supply of important resources and raw materials, as well as the manufacturing and production of parts. This industry determines the development speed of other industries and has the characteristics of foundation, raw materials and strong correlation. Such as construction companies, decoration companies, advertising companies providing other services, transportation companies, etc.

2. Downstream industry refers to the industry that is at the end of the whole industrial chain, processing raw materials and parts, manufacturing finished products, and engaging in production and service. Upstream often holds some kind of resources. For example, minerals, or mastering core technologies, enter industries with high thresholds, so many investors prefer stocks in upstream industries.

Extended data:

Upstream enterprises and downstream enterprises are interdependent. Without the raw materials provided by upstream enterprises, downstream enterprises are like clever women who can't cook without rice; If there is no downstream enterprise to produce products and put them into the market, the materials of upstream enterprises will be useless. Therefore, upstream enterprises and downstream enterprises in various industries should share joys and sorrows, help each other and develop together. ?

In fact, upstream and downstream are relative concepts in the modern production industry chain, which have more detailed and wider application value than the traditional division of agriculture, heavy industry and light industry. With the development trend of economic globalization, the correlation between industry and the whole social and economic development is constantly improving, and the relationship between industry and related industries is more encrypted and inseparable. ?

Except for the production of some end consumer goods (such as some household appliances), most industries are upstream industries from one angle and downstream industries from another.

Baidu Encyclopedia-Upstream Industry

Baidu encyclopedia-downstream industry