Real-World Cases of Escaping 'Involution': Innovation and Digital Transformation Are the Best Solutions (Part I)

Growth has already slowed across most industries in China, and 'involution' has begun. Most enterprises now face the following vicious cycle. Case One: An In-Industry Player Breaks Free — The New York Times Background: 1. Severe involution within the industry: In the New York metropolitan area alone, there were over one hundred newspapers and periodicals; 2. Advertising volume is shrinking, and ad prices are falling; 3. Fewer and fewer people are willing to read print media; 4. The internet and emerging media are encroaching upon traditional media’s turf; 5. The New York Times had exhausted all possible cost-cutting measures. At its peak, the New York Times occupied an entire building as its headquarters; during the height of involution, it occupied only one floor of that same building. Yet even then, the company remained unprofitable—continuously losing both advertisers and readers. Dozens of newspapers shut down every month, yet this did not alleviate involution. Why? Because those advertising dollars simply migrated online instead of returning to traditional print media. So how did the New York Times break free? 1. Leveraged internet advantages to extend its reach globally; 2. Adopted a new journalism model: Today, a single editor—without overtime—can accomplish what previously required ten editors; 3. Partnered with major social networks to cultivate public habits of discussing major news events online. The New York Times completely reinvented its business model—transforming from a regional newspaper into one of the world’s most influential global media outlets. It became one of the most successful traditional media companies, with over two million subscribers. Case Two: An Out-of-Industry Disruptor Breaks Free — Expedia Background: 1. Severe involution within the industry: At its peak, there was roughly one travel agency for every 1,500 adults; 2. Price had become the sole competitive dimension; 3. Almost no travel agencies achieved growth breakthroughs; each served only its local community; 4. To grow, agencies could only extend operating hours or renovate storefronts—increasing operational costs. How did Expedia break free? 1. Leveraged internet and digital technologies to convert a variable-cost business into a fixed-cost one; 2. Transformed localized, community-based travel agency services into nationwide—and ultimately global—services; 3. Created new dimensions of competition: convenience (no need to leave home), information transparency, and breadth of choice. Many customers choose Expedia for its convenience and transparency—not price competitiveness. It completely disrupted industry-wide involution: while 90% of peers declined, Expedia became consumers’ default channel for travel planning, setting new industry standards—and generating over $12 billion in annual revenue! Case Three: A Traditional Industry Player Breaks Free — Ecolab Background: 1. Severe involution within the industry: Most chemical enterprises competed solely on cost advantages to win customers; 2. The vast majority remained trapped within their original markets—geographically and product-wise; 3. Homogeneous competition was rampant: products offered by different companies were virtually indistinguishable; 4. To achieve economies of scale, most firms blindly expanded production capacity. How did Ecolab break free? 1. Deeply explored end-user needs (e.g., formulation requirements) and transformed from a raw-material supplier into a solutions provider;

From a Single Resin to a Commercial Empire: Stories of Purolite, Ecolab, and Nalco

• C100E: Arguably Purolite’s 'national-level' product—a classic strong-acid cation exchange resin primarily used for water softening. It’s ubiquitous: in household boilers, industrial pretreatment systems—you name it. Robust, reliable, and highly cost-effective. • MB400: A mixed-bed resin—the go-to solution for producing ultrapure water. Indispensable in semiconductor manufacturing and pharmaceutical production, it purifies water to near-H₂O purity. • S930Plus: A high-performance chelating resin specifically engineered to remove heavy metals. It selectively adsorbs nickel, copper, mercury, and other toxic metals from electroplating wastewater—functioning as an 'elite special forces unit' in environmental protection. • Calibri™ Series: The true premium line. Designed for chromatographic separation in biopharmaceutical applications—such as mRNA vaccine purification and insulin isolation. This is no longer just water treatment; it’s core process technology directly embedded in drug manufacturing. Observe how Purolite’s product portfolio spans the full spectrum—from everyday water softening to cutting-edge pharmaceuticals. This strategic depth laid the groundwork for its later evolution. II. Purolite the Company: From 'Small but Excellent' to 'A Target' Purolite didn’t emerge overnight. Founded in the U.S. in 1981, it later relocated its headquarters to the UK, gradually establishing a transatlantic footprint. Two pivotal moves truly propelled its leap forward: First, betting big on the Chinese market. In 1996, Purolite built a factory in Deqing, Zhejiang Province. At the time, few realized this plant would later become Asia’s largest ion-exchange resin production base—allowing Purolite to fully capitalize on China’s massive demand surge driven by industrialization and urbanization. Second, proactively pivoting upward—to the high-end. Purolite’s management demonstrated remarkable foresight: low-end water-treatment resins were inevitably heading toward a red ocean; value lay in high-margin, high-tech domains. Accordingly, Purolite deliberately scaled back its low-end business and aggressively pursued pharmaceuticals, nuclear power, and semiconductors. For instance, it developed advanced adsorption resins for pharmaceutical separation and purification early on—filling critical domestic technological gaps. This strategic shift transformed Purolite from a mere 'material supplier' into a 'core separation technology provider'—dramatically elevating its market valuation. By around 2020, Purolite had evolved into a highly profitable, niche-market leader possessing proprietary core technologies—and holding strategic leverage over future-oriented industries like biopharmaceuticals. Such a company was inevitably destined to attract attention from larger industry giants. III. The $3.7 Billion Acquisition: Ecolab’s Calculated Move In 2021, a landmark event shook the industry: Ecolab acquired Purolite for $3.7 billion in cash. Many people’s first reaction was: Who is Ecolab—and why spend so much? Briefly put: Ecolab is no newcomer—it’s a global leader in water, hygiene, and energy technologies and services. Its cleaning and disinfection solutions power five-star hotels, restaurant chains, and major hospitals worldwide. It also boasts decades of deep expertise in industrial water treatment. So why did Ecolab acquire Purolite? The logic is straightforward: 1. Acquiring the most critical missing piece of its technology puzzle. Ecolab’s historical strengths lay in 'peripheral management of water systems'—e.g., preventing scale formation in cooling water, inhibiting boiler corrosion, and controlling bacterial growth in piping.

Ecolab Inc. Reports 1Q 2026 Revenue of $4.07 Billion

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Ecolab Inc. reported Q1 2026 net sales of $4.07 billion, a 10% increase year-over-year, driven by Food & Beverage and Life Sciences sectors. Net income rose 7.4% to $436.6 million, supported by $134 million in restructuring savings.

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