resulting in more intense price competition

The industry is more competitive, resulting in more intense price competition. On the one hand, industry supply is rapidly growing, and companies are eager to expand their market share in the golden period after the epidemic, reducing costs to compete for more orders may be the first strategy that many companies think of; on the other hand, the demand side is lagging behind in keeping up with the pace, disrupting replenishment cycles. Therefore, the so-called poor demand in the market is actually due to the fact that everyone is scrambling for orders, and the selling price of orders mostly does not meet the original expectations. Downstream end customers are not in a hurry and have gradually transformed their mentality from buying high to buying low. The contradiction between market digestion of accumulated inventory from last year's channel and the upstream manufacturers' urgent need to achieve rapid year-on-year output growth has widened, which has brought great pressure to some enterprises with weak competitiveness and not-so-obvious cost advantages.