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To Grasp True Demand, We Must First Recognize the Profound Shifts in the Market

Oct 01-2025   



*This article is based on a keynote speech by Liang Ning—host of the “30 Lectures on  Growth Thinking” from Dedao APP and author of True Needs.

 

Shift 1: Unprecedented Market Scale and Iteration Speed

We are now in 2025, and a quarter of this century has already passed. Examples such as the movie Nezha widening the box office gap with other films and DeepSeek quickly topping the download charts in 140 countries on the Apple App Store shortly after its launch both demonstrate the power of market scale today. Currently, China stands as the world’s largest and most robust single market: over 900 million people live in urban areas, and there are 1.1 billion internet users. We share a unified language and currency, abide by consistent market rules, and have a collective capacity for emotional resonance. When combined with the reach of social media, popular products like DeepSeek can instantly connect with massive user bases.

A similar era-defining shift is unfolding in the new energy vehicle (NEV) sector. In 2024, over 1,700 car models were available for sale in the Chinese market, with total sales volume hitting 20 million units—half of which were NEVs. Moreover, the 10 million NEV users represent not just market growth, but a clear trend: many consumers are abandoning products from the previous (combustion-engine) generation.

In an era where everyone is connected, products that deliver exceptional experiences gain market recognition rapidly. Like DeepSeek, Nezha offers an outstanding experience and value—and this means they truly meet users’ core needs.

 

Shift 2: From "Physical Dividends" to "Intellectual Dividends"

To become an entrepreneur or enterprise that thrives in this era, one must align with national trends and directions. Currently, China’s competitive edge has shifted from "physical dividends" to "intellectual dividends." In the early days, China’s advantages lay in its vast land, abundant resources, large population, low-cost labor, and relatively underdeveloped awareness of intellectual property protection and environmental pollution. Back then, countless enterprises grew into large-scale players by relying on mass-produced low-end supplies.

Later, China built the world’s largest and most comprehensive supply chain system, boasting extremely high efficiency in supply chain collaboration. This was followed by the rise of cross-border e-commerce: leveraging internet operation capabilities, supply chain efficiency, and global e-commerce/social media platforms, Chinese businesses expanded their reach worldwide.

Today, we have entered the era of human-AI coexistence. Artificial intelligence is no longer just an independent industry; it serves as the foundational support for many sectors—even qualifying as "infrastructure." Since the human-AI coexistence era has only just begun (for a few months), we can infer that the world will undergo dramatic changes over the next 20 years.

 

Shift 3: From Oversupply to "Scarcity as King"

We have gone through phases of rapid urbanization and internet penetration. However, as noted earlier, today’s young people have more diverse spiritual and social needs. From a product perspective, the old business model is no longer sustainable. I categorize product value into three types: functional value, emotional value, and asset value. Emotional value is subjective, while functional value is objective—with clear standards and parameter descriptions. This objectivity means products focused solely on functional value are easily replicated.

We all understand the importance of scarcity to product value; in fact, scarcity can be considered the first principle of business. In my view, scarcity hinges on three key factors:

High-quality supply: Nezha is a high-quality provider of emotional value, while DeepSeek is a high-quality provider of functional value.

Capacity to mobilize and organize consumption.

Brand value: A brand has two core values: first, priority in choices under equal conditions; second, the ability to command a premium.

 

Shift 4: "Meeting User Needs and Gaining Their Liking" Is No Longer Sufficient

The relationship between a brand and its users can be further divided into four levels: need, liking, identification, and belonging. “Need” is the most rigid relationship, corresponding to objective functional value. “Liking” is an open-ended emotion, representing a preference but not requiring loyalty—loyalty only begins with “identification”. “Identification” means sharing commonalities (while also having distinct traits), which is a hallmark of “circle consumption”. Notably, need, liking, and identification all revolve around the individual. “Belonging”, by contrast, transcends the individual—it is broader and more significant.

People can forgo what they “need” and acquire it later when conditions allow; what they “like” may not be essential. Among these four relationship levels, “belonging” is the deepest. The most painful scenario for a brand is having users who only “need” its product, but neither “like” it nor feel any sense of “identification” or “belonging”.

The future will see deeper human-AI coexistence, bringing more new changes and possibilities. We believe the Chinese market will continue to evolve—with new players replacing old ones and diverse entities thriving together—but this depends on having a new generation of entrepreneurs who can recognize trends and create or identify true user demand.

 

To Grasp True Demand, We Must First Recognize the Profound Shifts in the Market

Oct 01-2025   



*This article is based on a keynote speech by Liang Ning—host of the “30 Lectures on  Growth Thinking” from Dedao APP and author of True Needs.

 

Shift 1: Unprecedented Market Scale and Iteration Speed

We are now in 2025, and a quarter of this century has already passed. Examples such as the movie Nezha widening the box office gap with other films and DeepSeek quickly topping the download charts in 140 countries on the Apple App Store shortly after its launch both demonstrate the power of market scale today. Currently, China stands as the world’s largest and most robust single market: over 900 million people live in urban areas, and there are 1.1 billion internet users. We share a unified language and currency, abide by consistent market rules, and have a collective capacity for emotional resonance. When combined with the reach of social media, popular products like DeepSeek can instantly connect with massive user bases.

A similar era-defining shift is unfolding in the new energy vehicle (NEV) sector. In 2024, over 1,700 car models were available for sale in the Chinese market, with total sales volume hitting 20 million units—half of which were NEVs. Moreover, the 10 million NEV users represent not just market growth, but a clear trend: many consumers are abandoning products from the previous (combustion-engine) generation.

In an era where everyone is connected, products that deliver exceptional experiences gain market recognition rapidly. Like DeepSeek, Nezha offers an outstanding experience and value—and this means they truly meet users’ core needs.

 

Shift 2: From "Physical Dividends" to "Intellectual Dividends"

To become an entrepreneur or enterprise that thrives in this era, one must align with national trends and directions. Currently, China’s competitive edge has shifted from "physical dividends" to "intellectual dividends." In the early days, China’s advantages lay in its vast land, abundant resources, large population, low-cost labor, and relatively underdeveloped awareness of intellectual property protection and environmental pollution. Back then, countless enterprises grew into large-scale players by relying on mass-produced low-end supplies.

Later, China built the world’s largest and most comprehensive supply chain system, boasting extremely high efficiency in supply chain collaboration. This was followed by the rise of cross-border e-commerce: leveraging internet operation capabilities, supply chain efficiency, and global e-commerce/social media platforms, Chinese businesses expanded their reach worldwide.

Today, we have entered the era of human-AI coexistence. Artificial intelligence is no longer just an independent industry; it serves as the foundational support for many sectors—even qualifying as "infrastructure." Since the human-AI coexistence era has only just begun (for a few months), we can infer that the world will undergo dramatic changes over the next 20 years.

 

Shift 3: From Oversupply to "Scarcity as King"

We have gone through phases of rapid urbanization and internet penetration. However, as noted earlier, today’s young people have more diverse spiritual and social needs. From a product perspective, the old business model is no longer sustainable. I categorize product value into three types: functional value, emotional value, and asset value. Emotional value is subjective, while functional value is objective—with clear standards and parameter descriptions. This objectivity means products focused solely on functional value are easily replicated.

We all understand the importance of scarcity to product value; in fact, scarcity can be considered the first principle of business. In my view, scarcity hinges on three key factors:

High-quality supply: Nezha is a high-quality provider of emotional value, while DeepSeek is a high-quality provider of functional value.

Capacity to mobilize and organize consumption.

Brand value: A brand has two core values: first, priority in choices under equal conditions; second, the ability to command a premium.

 

Shift 4: "Meeting User Needs and Gaining Their Liking" Is No Longer Sufficient

The relationship between a brand and its users can be further divided into four levels: need, liking, identification, and belonging. “Need” is the most rigid relationship, corresponding to objective functional value. “Liking” is an open-ended emotion, representing a preference but not requiring loyalty—loyalty only begins with “identification”. “Identification” means sharing commonalities (while also having distinct traits), which is a hallmark of “circle consumption”. Notably, need, liking, and identification all revolve around the individual. “Belonging”, by contrast, transcends the individual—it is broader and more significant.

People can forgo what they “need” and acquire it later when conditions allow; what they “like” may not be essential. Among these four relationship levels, “belonging” is the deepest. The most painful scenario for a brand is having users who only “need” its product, but neither “like” it nor feel any sense of “identification” or “belonging”.

The future will see deeper human-AI coexistence, bringing more new changes and possibilities. We believe the Chinese market will continue to evolve—with new players replacing old ones and diverse entities thriving together—but this depends on having a new generation of entrepreneurs who can recognize trends and create or identify true user demand.