Environmental protection and strict investigation of the strength of the spot exhibition

Recently, the LED display manufacturing industry has once again encountered the "iceberg". The environmental protection investigation in the second half of the year has begun again. The upstream raw materials led by PCB plates have returned to the trend of "up and down" at the beginning of the year:

Since the beginning of July, Shandong Jinbao, Jianye, Mingkang, and other companies have issued copper foil, copper clad laminates and other price increases, after raising the price of 10% CCL, at the end of July, Fujian Mulinsen Lighting, Dongcheng Hongye, Morgan Electronics, Hai A number of PCB companies in the industry, such as Le Electronics, have also announced the price increase notices for circuit boards. Recently, according to PCB suppliers in the industry, some suppliers of sheet metal raw materials are currently brewing another price hike (it is expected to increase by about 10%. Now manufacturers have raised their prices by 3%. Once they rise to 10%, PCB board manufacturers also Will collectively adjust the price again).

         Philippines MJ-P40 - Xinshibo Optoelectronics (Shenzhen)

Recalling last year: I received two or three price increase notices in a week, until I found out that the price increase was still good. Some factories directly broke the raw materials! The production was suspended before the annual leave! That is the rhythm that directly faints. Ah Q’s spiritual style is “already very good now”.

Today, I don’t talk about the “bad things” in the price of raw materials. Let’s talk about things that are even more “bad”.

Here, the suppliers have raised the price hike "big knife", and asked with a heartfelt question: Who should increase the price of LED screen enterprises?

Someone immediately thought of it. It's very simple: go up to the customer! Oh, it's really easy. Price reduction is easy to raise prices, this sentence is the most true portrayal of the current LED display industry. Let's not say whether the end customer can accept the price increase of the product, and ask the peers to answer the price increase. In a nutshell: LED display prices are "difficult".

Small and medium-sized enterprises do not dare to rise

As a downstream screen enterprise, in the face of rising prices of upstream raw materials, it is a matter of course to wait and see whether prices are rising. Looking back at the end of last year, many screen companies in the industry are eagerly awaiting the news that terminals are using LED display products to increase prices, but in the end it is empty. At present, many screen companies have been soberly aware that after a long game, it is already very difficult for LED terminal display products to raise prices, especially for small and medium-sized enterprises: The truth.

In the current market environment, small and medium-sized enterprises that do not have strong brand advantages and capital strength rely on what is firmly established? Undoubtedly, the price is low, and their low price is their biggest advantage. Once the price of raw materials rises sharply, they will further compress them. Relatively meager profit margins, in this case, if you voluntarily give up their price advantage and rashly increase prices, there will only be two results: one is that the customer cancels the order directly, terminates or delays the cooperation; the other is that the customer directly goes to The competitors of the price increase placed orders and cooperated. If you can't handle these two situations, you will let the small and medium-sized screen companies finish playing. Therefore, the more in this case, the more small and medium-sized screen enterprises are more afraid to "small move".

Brand screen enterprises will not rise

Why do you say this? First of all, for brand big screen enterprises, you can guarantee long-term supply contracts and establish your own raw material base through futures and suppliers to ensure the stable supply of raw materials. Secondly, the brand's large-screen enterprises have high added value of raw materials and resist. The ability to raise the price risk is strong. At the same time, it can control the middle and high-end market with advanced technology and high-end manufacturing, and win the profit guarantee. Finally, the brand big screen enterprise also has a great advantage in capital, and can have sufficient capital strength to deal with this time. The price surge; therefore they do not need to rely on price increases to ease the pressure on profits. However, large-screen enterprises that do not have the pressure of survival may take the opportunity to seize some of the small and medium-sized screen enterprises. Not only will they not raise prices, but they will actively lower their prices in the terminal market. This will undoubtedly be a huge blow to small and medium-sized screen enterprises.

Therefore, in general, the pressure to rely on price increases to alleviate the rise in raw material prices is awkward. The best way for terminal screen companies to reduce costs by optimizing productivity is to ensure that only by continuously learning and understanding the production process can it be safe. For enterprises without physical productivity, such as the LED display of channel dealers and traders, this is undoubtedly a bad news - the price of raw materials is rising, and the display companies have to maintain the original price, which has severely squeezed the channel. And the profit margin of traders, even endangering survival, once the price of raw materials is out of control or the industry launches a new round of reshuffle, such companies will most likely be the first to go out, so before the “disaster”, these companies need to find early Go to your own "refuge".