Unless AI Can Create Labubu

This post I came across on Jike (即刻, a social platform) today was quite interesting.
I thought it over, and the logic makes sense, too. It’s especially interesting to come across it at this particular moment.

We’re actually in a market with little room for growth right now, and even in a somewhat deflationary environment. (Though no one will admit it .)

What is an efficiency model?
For example, national subsidy policies, consumer vouchers, or a 1% interest subsidy on consumer loans (coming soon).
These can all accelerate and stimulate consumption, but they’re just attempts to release a little suppressed spending potential within existing needs and scenarios.

What are new needs and new scenarios?
For example, Labubu’s sudden arrival, or AI toys and AI companion robots.
Before Labubu appeared, people may not have realized they had this need. Only after it suddenly appeared and became a huge hit did they discover that a certain emotional need had been met—that it resonated with them.
This need was created: Labubu stirred up and ignited this shared need inside people.
AI toys and companion robots are representative examples of new scenarios, and new scenarios also mean new needs.

According to him, focusing on an efficiency model in a market with little room for growth, or in a deflationary environment, is completely useless and may even backfire.
My understanding of his logic is that, when competitors carve up an existing market, competing on efficiency eventually becomes a ‘suicidal race to the bottom.’ Profits for the players along the industry chain get squeezed lower and lower; people get more and more exhausted and still can’t make money.

But returning to those measures for accelerating consumption, I wouldn’t say they’re completely useless. I think they can still bring some expansion in demand; the extent of the change is just limited.
If consumers can put off acting on a need, that suggests it isn’t essential enough or particularly pressing. The need can be set aside, waiting to be fulfilled, without any urgency.

The biggest stimulus and transformation should probably still come when a new product can spark a new need—when a new desire to consume, one people may not even have known or noticed they had, is suddenly activated.
That may be what brings enormous market change and growth.
Once the spark catches, add an efficiency model, investment, channels, and production, and it spreads like wildfire.

Later, another interesting thought occurred to me—
Looking back at this, doesn’t it resemble the situation AI application products are in right now?

Whenever people mention AI applications, they inevitably mention using AI to improve efficiency. And improving efficiency is currently the main direction of these applications.
Of course, we’re not saying AI-driven efficiency is useless. It certainly still has value. (I’d guess that only a very small number of businesses and individuals can actually feel those efficiency gains right now.)

It just suddenly gave me a new thought:
Could it be that efficiency gains aren’t useless, but that there’s a problem with the market?
In competition over an existing market, how many companies are willing to pay for greater efficiency? (This is like that postponed desire to consume mentioned above.)
And can greater efficiency change the market landscape?

If the answer is No, should the people making AI application products shift their focus away from AI-driven efficiency and look in a different direction?

AI is the biggest variable of this era and could bring the greatest growth; we’re just still using it for old scenarios and old needs.