The Cost Continues to Rise. What Corresponding Measures Should LED Screen Enterprises Take

In the face of the current irreversible rise in the price of raw materials, for many LED display terminal manufacturers, on the one hand, the price adjustment of terminal products can indeed temporarily alleviate the embarrassment in a special period, but on the other hand, the price increase countermeasures are only an expedient measure, and efficiency and cost reduction are the key. What kind of response measures should be taken is now a necessary strategic decision.

Since the second half of 2020, many upstream raw material manufacturers such as PCBs and chips have issued several rounds of notification letters of shortage and price increase, forcing many businesses and dealers to store and prepare goods in advance; However, in the first-line market, we also see that the promotion of low price reduction of various LED display products is still a normal marketing action, especially in the spring stock stage. Many manufacturers are paving the way for the performance in 2021, and the activities of price reduction and profit transfer are still very active. Therefore, end consumers do not feel much impact of price increase.

Standing at the new starting point of market competition in the LED display industry in 2021, with the continuous rise of raw material costs, various operating costs including labor and logistics continue to rise sharply, and there is no sign of turning around and going down. In fact, many LED screen enterprises and dealers are very clear that under the pressure of surging operating costs, it is urgent to improve the price of terminal products. However, for all operators, it is easy to increase the price, and how to deal with the subsequent impact is the problem. This requires screen enterprises to judge whether the price increase is good or bad in combination with their own operating conditions.

First of all, every round of price reduction and price increase in the LED display industry tests the operating ability and level of various manufacturers. Whether someone hoards goods and gambles on price increase or someone shortens positions, it is a very risky thing, which forces and squeezes the overall operating strength of the enterprise, especially fine management. In recent years, with the improvement of the employment threshold of the LED display industry, each adjustment will eliminate a group of speculators and weak.

Secondly, the price rise is an industrial self-adjustment for all walks of life, and the LED display industry is no exception. The leading screen enterprises pursue the constant strength of the strong under the oligopoly effect, and have great anti risk ability. Naturally, they are happy to see the inflection point of this round of price rise, so as to shuffle the market at the minimum cost; Of course, small and medium-sized screen enterprises with weak strength are naturally the biggest victims of rising raw material prices and operating costs. Therefore, from the perspective of the healthy development of the industry, the price increase will accelerate the reshuffle process of the industry, promote the healthy and sustainable development of the industry and return to the product value standard.

Finally, the direct cause of this round of price increase is more the result of external forced extrusion under the impact of the global supply chain and economic environment. It belongs to a typical external impact. All LED screen enterprises need to consider how to follow the trend and expand against the trend. From this point of view, for those led display manufacturers with ideas and means, they can take the opportunity to actively carry out a new round of adjustment, or it will become a good opportunity for development.

Of course, in the face of this round of continuous rise in raw material prices, all LED display manufacturers and dealers, regardless of their size and strength, can not be alone. They should not only learn to take the initiative to adapt to the trend, but also drive the overall premium of products through product structure adjustment and new sales; We also need to actively explore new tracks that expand against the trend. Because only by actively participating in various challenges and coping with various crises can we have the opportunity to reverse the trend!

The source of the article: WeChat official account: LED display channel] welcome to add attention! Please indicate the source of the article.

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