Views: 0 Author: Site Editor Publish Time: 2021-05-16 Origin: Site
Raw materials and related supporting companies from the "upstream" have followed up the price increase. Although this has resolved their own business crisis, it is miserable for terminal LED display application companies, because LED displays belong to High-end application products are not necessities of life. Therefore, the attributes of their products determine that LED display companies cannot "do it rashly" in price. Wait and see whether the price increases or not is what should be done.
So in the face of this crisis of rising prices of raw materials, how should LED display companies respond? First of all, as far as price increases are concerned, it is easy to increase, but the follow-up impact and how to deal with it is a difficult problem. Therefore, considering the development of the entire industry, whether a company raises prices or not requires companies to judge whether the price increase is a big advantage or a big disadvantage based on their own operating conditions.
Generally speaking, in the face of this situation, small and medium-sized enterprises generally do not dare to raise prices, and brand enterprises will not rise. Because for small and medium-sized enterprises, brands and channels do not have an advantage. Only price is their biggest reliance. If prices increase rashly, there are bound to be two results. One is that the customer directly cancels the order, terminates or delays Cooperation; Second, customers directly place orders and cooperate with competitors who have not raised prices. If this continues, the survival of small and medium-sized enterprises will be a problem.
For brand companies, they have advantages in channels, brands, and capital turnover. Facing the crisis of rising prices of "upstream" products, they can ensure the stable supply of your own raw materials by signing long-term supply contracts with suppliers, establishing your own raw material base; it can also improve brand competitiveness and enhance the ability to resist price increases. In addition, it can also rely on advanced technology or high-end manufacturing processes to master the mid-to-high-end market and win profit guarantee.
Therefore, in addition to rising prices, the current more feasible way for LED display companies to resolve the crisis is to increase the added value of their products, that is on the basis of the original LED display enhancing the resolution, improving the display effect and continuously enriching the product content, which is making it more intelligent and standardized, etc.; only in this way, the LED display can be more competitive and better integrate into the market; In addition, the increased value-added LED display is also conducive to the development of emerging markets, and the vast blue ocean of emerging markets can alleviate the business crisis of enterprises.
The “price increase tide” has come, and no matter how scared you are, you cannot change the fact that the pressure brought by the price increase of raw materials., so instead of blindly complaining about the price increase, it is better to find a way to resolve the crisis. In the case of extremely fierce market competition and rising operating costs, looking for new market growth points is still a good way for display screen companies to escape the crisis.