In the contemporary business environment, there exists a striking differentiation in profit margins between smaller enterprises, such as small businesses and individual ventures, and larger corporations. This disparity prompts a critical examination of the underlying factors that allow smaller firms to consistently enjoy higher profit margins than their larger counterparts.

During the economic downturn, enterprises temporarily weaken the high-end product brand, and instead launch the low-end product brand to adapt to the sluggish market demand, this strategy seeks a balance between short-term economic interests and long-term brand maintenance, which has multiple important implications.

First, to achieve short-term economic benefits