Raw material prices are getting higher and higher, labor and transportation costs continue to rise, and cost pressures are increasing... 2021 does not seem to be better for LED screen companies, especially those that used low prices as their competitive advantage. Small brands, seeing the terminal market gradually improve, the order volume has begun to rise, but raw materials are not available, the inventory is insufficient, and there is no way to survive. As analyzed by industry insiders: "Through this adjustment of ‘price increase’, another wave of LED screen companies with poor anti-risk capabilities will fall! And leading companies will also seize the opportunity to grab more market share..."
Order decisively and stock up reasonably!
As we all know, before and after the New Year, the sales of the LED display industry are relatively prosperous, and production is relatively prosperous. Presumably, many LED display companies want to seize the peak season and make a lot of money. However, if there was insufficient stocking a year ago, and now faced with production lag (for reasons such as untimely replenishment of raw materials), you can only guard the empty warehouse and watch the orders slip away! Therefore, I would like to remind the distributors that in special periods, ordering must be decisive, and of course, they must be reasonably stocked in accordance with their own and market conditions to reduce operating risks.
The price hike is just the beginning!
Numerous phenomena show that the current wave of price increases in raw materials is just the beginning, and subsequent price increases will inevitably drive up prices in all walks of life. In addition to the LED display industry, household appliances, smelting and other industries are facing crises such as shortage of raw materials, environmental protection and capacity reduction, a more complicated foreign trade environment, and unsalable products, which may eventually trigger a wave of closures of a large number of small and medium-sized enterprises.
Rise or not? Difficult at both ends!
The profit of the industry is getting thinner and thinner, and the price of terminal products "rise or not" is the most difficult problem for LED screen companies. Rising, I am afraid that the customers who have been found hard to find will lose, if it does not rise, the loss-making business will not last long. In the face of rising costs of raw materials, labor, processing fees and other aspects, for many LED display manufacturers and distributors, how to make up for the intermediate profit gap?
At the same time, the leading screen companies headed by Qianli Jucai have issued a "price reduction promotion" notice. From this, it is clear that China's LED display industry after March will face the challenges faced by enterprises and merchants at the operating level. There are two core pressures: First, the price of upstream raw materials continues to rise, and the resulting cost rise will show a trend of rising costs; second, a new round of position competition led by leading screen companies is about to start. What should small and medium-sized screen companies and distributors do? response?
Of course, under the crisis, the start of 2021 will also have many advantages. 5G\8K applications will accelerate, the ultra-high-definition video industry is about to take off, and Mini/Micro LED will further increase. At the same time, the industrial transformation and adjustment is accelerating. Structure, marketing strategy, promote the growth from scale to scale and quality; in general, in the process of operation and competition in the first-line market, LED display manufacturers and distributors, whether it is the increase in supply prices or price reductions, are essentially the same. It is only a means rather than an end. In the new consumer era, better facing users, focusing on needs, and exploring more diversified and diversified business methods and strategies are the key points.
Therefore, in the face of a new round of raw material price increases, LED display manufacturers and distributors can jump out of the old difficulty of "rise or not", focus on the first-line market and mainstream users as soon as possible, and explore more commercial competition methods and content.
