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LED display manufacturers can only win by outsmarting

by:Toponetech     2021-06-18
What is the hottest in the LED display industry? Nothing is more exciting than the news of price cuts by screen companies. Chinese LED display manufacturers are eager to try, and the entire industry is boiling. With the coming of the off-season every year, an industry-specific price war seems to be about to take place. People in the industry know that compared to price wars simply to compete for more markets, the price behavior of many LED display manufacturers is more compelling. The current overall market pattern of the touch display industry has obviously begun to turn again: supply exceeds demand. Many LED display manufacturers and distributors are caught in inventory dilemma.   Recently, many manufacturers complained that the pressure in 2018 was too great. Every month, manufacturers are forcing dealers to stock up stocks. It’s really impossible to bite the bullet, but the price of the product is going downhill and depreciating. Even if I complete the task of getting the goods this month, I will have to work hard. LED display manufacturers will be more miserable next month. In fact, not only the distributors are uncomfortable, but the manufacturers are also under great pressure. We think deeply about the reasons for the collective price reduction of touch display manufacturers, and the pressure on the upstream raw material costs must be relieved. Involved. It is understood that after the large-scale addition of automation equipment by the screen factory last year, the packaging factory has also continued to add equipment, but in fact there is not such a large market increase. Now some packaging companies can only sell inventory at a price drop. As we all know, the biggest cost of the LED display is the lamp. If the price of the display is reduced, the price of the terminal product will also be reduced. touch display prices     plus the price increase of most of the upstream raw materials has begun to pull back. This is undoubtedly a sigh of relief for many manufacturers who were overwhelmed by the price increase of raw materials, but at the same time, it also made many manufacturers who had been stockpiled due to the pressure of price increases severely injured, and they had to really respond to the market as soon as possible. Before coming over, we can absorb these inventory pressures. Therefore, the status quo of many manufacturers is: the price is lower than the day, and they hope to produce more goods. The same inventory pressure is also passed on to many dealers, causing many dealers to dare not stock up, because if the price drops further, the value of the goods that are not sold out will depreciate. Facts have proved that the price of raw materials continues to rise, which not only makes the manufacturers who have no stocks miserable, but also makes the screen companies who stock too many stocks are very edgy. I believe everyone has also seen the problems here. In fact, the dealers are hoarding a lot of goods. Achieved a temporary impulse, but sales did not achieve real growth. The market capacity remains the same. You just overdraft the market ahead of time and transfer the manufacturer’s inventory to the distributor. If this happens in the long run, not only will it harm the interests of the distributor, this unhealthy marketing method will also hinder the development of the manufacturer. Therefore, manufacturers must also cooperate well. The next terminal promotions must not just float on the surface. In addition to continuously deepening the channels and letting the channels continue to sink, they should also get rid of the past low and peak season market operation ideas, and constantly improve the dealers. Policies help them digest inventory as quickly as possible. Only when LED display manufacturers improve their products and understand customer needs can they achieve a win-win situation in this big PK.
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