Why LED Display Companies Raise Prices In The Upstream And Lower Prices In The Downstream?

Publisher: Supplier of LED Display Time: 2017-03-17 10:26 Views: 2079

The new year of 2017 is coming, and the prices of related materials in the LED display industry continue to rise as before, especially in late March. According to relevant sources in the industry, after the two sessions, the price of PCB and other raw materials will continue to rise.

 

The continuous increase in material prices of upstream companies is no longer a new thing. Just after the industry experienced price increases in the second half of last year, some industry professionals expressed their optimism about the next trend of price increases for terminal LED display products. According to past events In terms of occurrence, whether it is from the perspective of the industry or from the perspective of the majority of users, the price increase of raw materials is bound to increase the cost pressure of downstream LED display manufacturers. A reasonable price increase is undoubtedly an expression of the best way to transfer pressure. After 2017, in addition to paying attention to the news of the price increase of raw materials, we, Lianchengfa, are also paying attention to the actions of downstream display manufacturers. We originally thought that LED display companies would usher in a wave of price increases in the near future. The tide, especially in March, a screen company fired the first shot of the LED display company’s annual price increase, announcing its door series: single red, single white, single green, single blue, and colorful red. After that, many people must have been waiting for the price increase of this screen to come even more violently.

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After entering the tense March of 2017, according to reliable sources, the current display companies represented by channel wholesale have successively announced the news of price cuts, and some of them are still cutting prices more than the price, and even screens. The price cut by the company is as much as 12%! It seems that this is another tough battle to be fought. Normally, if the market is not good, and prices need to be cut to stimulate the market and grab business, either the company has to expand the market to wait for the first opportunity, but rely on price cuts to grab the market, or it is the chain reaction of the scale effect-you cut prices I can only follow. From the current industry development situation, the development of small-pitch and other technologies is so prosperous. The small-pitch, full-color LED display, rental and other markets are rising, and it is certainly not affected by the bad LED display market. of. As the current LED display technology continues to deepen, mature, improve, and the display industry integration continues to intensify, it coincides with the rising tide of raw material prices. This is indeed "a higher level" for some powerful display manufacturers. This is a good opportunity because they have more support in terms of capital, production capacity, channels, etc., allowing them to cut prices and give profits to customers while further expanding their product market, thereby creating greater market value for customers.

 

   On the other hand, the price cuts of strong downstream screen companies have also prompted more small and medium-sized screen companies to continuously optimize their own production capacity, technology, channel construction, and supply chain. As we all know, the current industry situation of Hengda who is big and Hengqiang who is strong makes many small and medium-sized LED screen companies prefer to absorb the pressure of raw material price increase by themselves, rather than easily increase the price. When the price is cut down, isn't it necessary for downstream companies to rely on their fate? If we do not carry out a comprehensive upgrade from research and development, production to sales, I am afraid that we will not be far from bankruptcy.

 

However, everything is implemented under the premise of benign price competition. The forecast of the current price reduction trend, whether it is the price increase of upstream raw materials or the price reduction of downstream screen enterprises, makes Lianchengfa feel more comfortable with this downstream The price cuts of the screen companies are caused by the fact that many LED display manufacturers are paying more and more attention to product quality and quality, and even many display manufacturers have reported product upgrades. I hope that regardless of whether the price will be upgraded again, everyone will Can keep the product quality top priority. All take the interests of the majority of users first, and better serve the people and society.