After the rise of led displays industry
According to reports, since July, PCB factories have issued successive price increase notices, including Omway Electronics, Jiantao Group, the industry's major PCB factories have issued price increase notices, set off a great uproar in the industry. Leading to the rising cost of LED raw materials procurement, recently downstream LED display companies have also issued price increases notice. On July 25, Liard issued a price adjustment notice, saying that due to the rising cost of raw materials upstream procurement costs, the company from now on for indoor and outdoor products on the basis of the existing price adjustment. In July 26th, Fujian Hai Jia Cai Liang optoelectronics company also issued a notice of product price adjustment. It's not clear whether other LED display companies are planning to raise prices, but Eliad's influence in the industry is believed to give many LED display companies unlimited reverie.
The impact of rising prices on Industry
LED upstream industrial chain PCB industry has entered the peak season, PCB product prices are expected to rise further, which will form a strong support for LED display. The second half is also the traditional peak season for LED display industry, and the huge market demand for downstream is about to be released. In particular, the expansion of small spacing display applications is expected to usher in a new round of LED industry explosion. With the upstream and downstream industry chain economy gradually booming, the profitability of related companies is also expected to be improved.
The overall industry price increases reflect the value of the industry at the same time, of course, is not to let everyone can not afford the display. In addition to alleviating the lack of R&D investment in the industry, but also to the industry for a long time "price war" has brought a lot of positive impact, so that the real good product from the "low price vortex" to pull away from the price level, the industry needs to return to the level of rational competition, and the initiative to raise prices is undoubtedly a good one. The beginning is more conducive to the development of the industry.
LED display industry is a highly integrated industry, in the middle of the various links of the various parts need to purchase, which makes many channel manufacturers breed, procure raw materials from upstream manufacturers, assemble them, transfer to downstream manufacturers. The middle link becomes very many, very miscellaneous, but the art industry specializes in, they focus on assembly, so that the downstream manufacturers to free up energy, from the cumbersome procurement, assembly links, better management of their own enterprises. More links, procurement matters for many enterprises in the industry is more important, which is worth mentioning more things.
In such a wave of price increases, many enterprises are also thinking about their own price increases, but when everyone is considering whether to increase prices, as represented by the powerful lottery companies are brewing a price reduction. Strange to say, the upstream PCB factories have issued price increases, according to purchased upstream parts. It should be an increase in cost. How can the powerful color and some products be reduced?
As we all know, Powerful Giant is a LED display enterprise which pays great attention to the development channel, and is one of the best developed LED display industry channels. This also makes it close to the upstream and downstream manufacturers. The reason why we choose to lower the price of some products at this time is that Powerful Collector has a strong price digestion ability, its complete supply chain has formed a "strong system" in the industry, attaching importance to supply chain management so that Powerful Collector has a strong cost control, so that Powerful Collector has a price choice space. . When the same type of enterprises in the industry are priced up passively because of the upstream manufacturers and the same type of enterprise products, powerful lottery can have more options.
Attaching importance to purchasing and supply chain management is not only a powerful colour, the downstream LED display manufacturers, the industry's few listed companies Abyson is also a worthy enterprise to talk about. Abison's procurement department has a complete procurement system, strict procurement requirements, the number of people is more than a dozen, to know that many companies procurement department generally only four or five people, some even less. Abison's management of the supply chain makes the cost control of Abison's upstream parts reach a certain level.
There are many problems in the industry procurement itself. It is difficult to curb the phenomenon of sub-prime. The increase of cost makes some enterprises sacrifice product quality. Many powerful upstream manufacturers will ask for spot transactions when downstream manufacturers come to purchase, which in itself is a procurement problem for some of the industry's undermanaged midstream and downstream enterprises, the price hike, but also make the problem worse. Paying no attention to procurement matters is bound to cause more serious consequences.