Sou Hu Cai Jing·2025-09-17 18:33Core Viewpoint - The article discusses the changing nature of scarcity in the market, emphasizing that scarcity is not eternal and is influenced by time, supply and demand, and substitutes. It highlights the decline in the price of Moutai liquor due to reduced demand and increased supply, suggesting that businesses must adapt to consumer trends to remain competitive [2][24]. Group 1: Definition of Scarcity - Scarcity is defined as the limitation in obtaining resources needed by people, where supply is insufficient relative to demand. It can be categorized into absolute scarcity and relative scarcity [7]. - In investment terms, scarcity refers to a situation where demand for a product remains stable or grows while supply cannot keep pace, often due to a lack of substitutes [8][9]. Group 2: Types of Scarcity - Geographic scarcity occurs when a product is unique to a specific location, such as Moutai liquor, which can only be produced in Guizhou [11]. - Technological scarcity is characterized by monopolistic advantages in technology, as seen with companies like Nvidia and Microsoft, which have maintained strong market positions due to their technological innovations [12][15]. - Non-renewable scarcity refers to resources that are limited and deplete over time, such as indium, which has a finite supply and is crucial for various technologies [21]. Group 3: Market Dynamics and Trends - The article notes that supply growth can destroy scarcity, as seen with rare earth elements, where excessive mining has led to a decrease in perceived value [22]. - The demand for cocoa has surged due to its limited supply and environmental vulnerabilities, leading to significant price increases [23]. - The decline in demand for high-end products, such as Moutai, due to anti-corruption measures and consumer downgrading, has resulted in a collapse of its scarcity and a drop in prices [24][25].