LED display industry: The Application of the Same Price Rise the Raw Materials
Small and medium-sized enterprises do not dare to rise up
As the downstream screen prices, in the face of upstream raw material prices tide, wait and see whether the price increase is a matter of course, recalled the end of last year, the number of enterprises in the industry looking forward to wait for the terminal to use LED display product prices news, At present, many screen enterprises have been very clear that: after a long game, now LED terminal display products want to raise prices is already a very difficult thing, especially for small and medium enterprises in terms of: The truth.
The current market environment, there is no strong brand advantage and capital strength of the small and medium-sized enterprises rely on what a firm foothold? Is undoubtedly the price, low price is their greatest advantage, and once the raw material prices rose sharply, they will further compress them Relatively meager profit margins, in this case if the initiative to give up their price advantage, rush prices, there will only be two results: one is the customer directly canceled the order, termination or delay cooperation; the other is, the customer directly to the Price competition competitors orders, cooperation. Well, these two cases will make small and medium-sized screen finished. So the more in this case, many small and medium-sized enterprises but rather not dare to "act rashly."
Brand screen enterprises will not rise
First of all, for the brand big screen enterprises, through futures and suppliers to sign long-term supply contracts, the establishment of their own raw material base to ensure their stable supply of raw materials; followed by large-screen brand of raw materials, high value-added, to resist Price and risk ability, and can rely on advanced technology, high-end manufacturing in the high-end market, to win profit protection; the final brand big screen enterprises also have a great advantage in the capital, to have sufficient capital strength to deal with this Price tide; so they do not need to rely on price increases to ease the pressure on profits. It is not the pressure to survive the big screen enterprises may take the opportunity to seize part of the small and medium-sized enterprises in the market, not only will not price, but in the terminal market to take the initiative to reduce their prices, which for small and medium-sized enterprises will certainly be a huge blow.
So in general, relying on price increases to ease the pressure on raw material prices is hopeless, the terminal screen the best way to optimize the way through the productivity to reduce costs, so only continue to learn more about the production process can be safe And for those who do not have physical productivity, such as channel operators and traders of the nature of the LED display business, this is undoubtedly a bad news - raw material prices, display enterprises to maintain the original price, which seriously squeeze the channel And traders profit margins, and even endanger survival, once the raw material prices out of control or industry to launch a new round of reshuffle, such enterprises will most likely the first to exit, so in the "disaster" before the advent of these companies need to find early To your own "sanctuary".