A demand crisis refers to a significant and sudden decline in consumer demand for goods and services within an economy or specific market. This situation can arise from various factors, including economic downturns, changes in consumer preferences, loss of consumer confidence, or external events such as natural disasters or pandemics. During a demand crisis, businesses may experience reduced sales, leading to inventory surpluses, decreased revenues, and potential layoffs or closures. The effects can ripple through the economy, impacting suppliers, employees, and the broader financial system. A demand crisis often requires strategic interventions from businesses and governments to stimulate demand, restore consumer confidence, and encourage spending, such as through fiscal policies, marketing campaigns, or product adjustments.
Market Oversaturation: The solar industry in China is grappling with a demand crisis as the market faces oversaturation due to an abundance of manufacturers engaging in fierce competition. Despite a…