In recent years, the price of LED display products has not fallen as fast as expected. Enterprises have been suffering from price wars, even if listed companies have no greater advantage. Among them, the wholesale-oriented enterprises are the most burdened, enter the profit-making era, and consume the profit and space of future market development in advance. In the long run, it will inevitably affect the development of the wholesale market of LED display industry. How to ease the profit of the wholesale market?
The dilemma of the wholesale market
After a decade of development, the LED display industry has evolved from an immature market naturalization product to a certain market scale, with a number of core enterprises, and the number of products manufactured in the world ranks first in the world and gradually transitions to mature industries. The formation of the wholesale market is a necessary process and product of its development. The emergence of wholesale enterprises confirms the rapid development of the LED display industry and the broad market demand. In particular, the production and manufacture of LED display products have been divided and refined, the threshold for entry has been rapidly reduced, and simple assembly companies have begun to replicate, and the number of wholesale enterprises has continuously increased.
Shenzhen is the development representative of China's LED display industry. Not only is the concentration of enterprises high, but also the most obvious characteristics of various markets. Convenient material assembly and fast market information have enabled Shenzhen to gather sales bases of almost all major display companies, and include most of the country's display wholesalers.
The fine number LED display wholesale company, Xiamen Powerful Color is undoubtedly the largest outside the listed companies. It is reported that Powerful Giant has two production bases in Xiamen and Quanzhou, 18 automatic production lines, 35 regular production lines, more than 2,000 employees, and a plant area of ​​50,000 square meters. It is the largest enterprise in the industry.
There are no leading display wholesalers in Shenzhen, and there are more medium-sized companies and countless small businesses. Shenzhen Zhongheng Chengdian, Mingchang Optoelectronics, Huaxia Guangcai, Tianhe Optoelectronics and other wholesale manufacturers have an annual production value of more than 100 million yuan, with a monthly production capacity of about 100,000 or more. There are still a large number of manufacturers with annual sales of about 10 million yuan, mainly in the form of OEM production and simple processing and production.
Wholesale market status
In general, LED display wholesalers do not have fixed R&D personnel. Most of the products sold are based on conventional displays. Most indoor and outdoor full-color screens, from P16 to indoor P4, P3, etc., P2.5 is high density. The pitch LED display is also available wholesale, but the output is small.
In the past, single and double color LED display screens were the main business of wholesalers. With the explosive growth of full color display screens, the full color screen wholesale business quickly occupied the market, and even the single and double color door screens gradually became full color door display. For this reason, Powerful Color has also developed a new full-color door screen specifically with power supply manufacturers.
Since LED display wholesalers mainly use product prices as the main means of competition, there has been a phenomenon that the increase does not increase, or even increase, but loses. According to a self-reported wholesale company in Shenzhen, “the LED display market has been quite exaggerated in recent years. When several billion-dollar companies closed down, they were involved in an alarming amount of money in arrears with suppliers. Then the problem of lending money in the entire display industry became increasingly serious. Now when we buy lamp beads, we usually ask for cash, and other spare parts are in the form of monthly knots. Because wholesale companies are big, labor costs, expenses are a very large amount, and liquidity is not enough. The first thing that affects the supply is supply. If there is not enough supply, it can't be produced normally. It is still the enterprise that can't produce the loss normally. For example, if you buy Mulinsen's lamp beads, Mulinsen asks for cash, and can send and sell every Monday to Friday, but we donate funds. Not necessarily so good, there is no cash purchase before Friday, there may be no lights on Saturday, Sunday and Monday. This happens, it is very sad."
Therefore, the current status of LED display wholesalers is very serious, and the improvement of the capital chain is the key to test its continued survival and development.
The phenomenon of profit is outstanding
Wholesale enterprises do not have the core technical strength, and they do not occupy a favorable active position in the entire industrial chain. On the contrary, in order to obtain meager profits, they do not hesitate to fight the price war, do not seek the lowest, only seek lower, so, the era of profit advent.
Because the entry threshold is low, the LED display wholesale company seems to be able to do everyone, a little money will run in, and there is no money to dare to empty the white wolf, so the display wholesale business is everywhere. As the price of LED display products is transparent, the degree of competition is intensifying, and some display manufacturers have no long-term awareness. As long as they can receive the order, they can do it without losing money. In order to reduce the cost as much as possible, they have to ask suppliers to cut prices. At the same time, price cuts are also weakening the quality of products. LED screens without price bottom line and without quality guarantee obviously overdraw the potential and profit margin of future development. "In particular, conventional display products such as the P10, according to the current price trend, the future is almost the risk of bottoming out."
Profit is the most serious test for wholesalers. If you continue to support the company with a low-cost strategy, then it will not be long-term. Only when enterprises actively save themselves can they defeat their opponents and stay in the end.
The way out for self-help wholesale enterprises
Transforming business ideas from subtraction to addition
In order to end the era of profit, it is necessary for LED display wholesale enterprises to start from their own business ideas, and to abandon the principle of price as the only means of competition, from the principle of subtraction to the principle of addition.
The so-called subtraction principle is to reduce production costs, reduce the price of raw materials, and thus reduce the price of finished products. The principle of addition is to increase the value of products and increase the comprehensive soft power of enterprises to enhance product prices and enhance the image of the industry. The LED display wholesale market is already mixed, the quality of the products is uneven, and the low-quality and low-priced enterprises may be able to gain a certain small market share with temporary confusion, but ultimately they will not escape the eliminated outcome. Transforming business ideas is difficult for display wholesalers, and it is necessary to make up their minds. This change must not only be based on the internal quality of the company, but also change the agreement with suppliers to re-evaluate product quality and quality. Come up, with the product quality of the chips, at least in the market competition, it is also emboldened and healthy.
Integrity management to serve based on the market
Integrity is a manifestation of self-discipline and social responsibility of display wholesalers. Integrity management is both responsible for the company's employees and responsible for the industry. In the era of profit, the LED display industry lacks the spirit of integrity, product quality is not honest, and after-sales service is not honest, etc., all affect the image of the company.
To improve quality with the principle of addition, and to establish a foothold in the market with quality service, this is the two main aspects of the internal improvement of display companies. Services include tracking before the order, answering questions in the order, and after-sales maintenance after the order is completed. Generally, LED display wholesalers have a large manufacturing volume and a large number of orders. The customer groups are not only in the same industry, but also in dealers, agents, contractors, and even private owners and individuals. And the problem is more complicated and diverse. At present, according to the general market regulations, display wholesalers provide products with a one-year warranty. If they return to the factory for repair, they will not provide home repair services.
If there is not much difference in the quality of the products, then the display wholesalers will have better service and higher cost performance. In the future, if LED display wholesalers want to become bigger and stronger, they must improve their products and services to avoid one-off business.
Warm up the group to achieve supplier win-win cooperation
Within the enterprise, we can improve our comprehensive strength by changing business methods, improving product quality, and strengthening service capabilities. Enterprises can strengthen industry cooperation and try to achieve mutual benefit through bundling cooperation with suppliers and partners. In this way, it can not only alleviate the shortage of funds for LED display wholesale enterprises under the background of tight liquidity, but also help them to jointly resist risks, enhance the collective awareness of honor and commonality, and thus guarantee product quality and after-sales service.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
The dilemma of the wholesale market
After a decade of development, the LED display industry has evolved from an immature market naturalization product to a certain market scale, with a number of core enterprises, and the number of products manufactured in the world ranks first in the world and gradually transitions to mature industries. The formation of the wholesale market is a necessary process and product of its development. The emergence of wholesale enterprises confirms the rapid development of the LED display industry and the broad market demand. In particular, the production and manufacture of LED display products have been divided and refined, the threshold for entry has been rapidly reduced, and simple assembly companies have begun to replicate, and the number of wholesale enterprises has continuously increased.
Shenzhen is the development representative of China's LED display industry. Not only is the concentration of enterprises high, but also the most obvious characteristics of various markets. Convenient material assembly and fast market information have enabled Shenzhen to gather sales bases of almost all major display companies, and include most of the country's display wholesalers.
The fine number LED display wholesale company, Xiamen Powerful Color is undoubtedly the largest outside the listed companies. It is reported that Powerful Giant has two production bases in Xiamen and Quanzhou, 18 automatic production lines, 35 regular production lines, more than 2,000 employees, and a plant area of ​​50,000 square meters. It is the largest enterprise in the industry.
There are no leading display wholesalers in Shenzhen, and there are more medium-sized companies and countless small businesses. Shenzhen Zhongheng Chengdian, Mingchang Optoelectronics, Huaxia Guangcai, Tianhe Optoelectronics and other wholesale manufacturers have an annual production value of more than 100 million yuan, with a monthly production capacity of about 100,000 or more. There are still a large number of manufacturers with annual sales of about 10 million yuan, mainly in the form of OEM production and simple processing and production.
Wholesale market status
In general, LED display wholesalers do not have fixed R&D personnel. Most of the products sold are based on conventional displays. Most indoor and outdoor full-color screens, from P16 to indoor P4, P3, etc., P2.5 is high density. The pitch LED display is also available wholesale, but the output is small.
In the past, single and double color LED display screens were the main business of wholesalers. With the explosive growth of full color display screens, the full color screen wholesale business quickly occupied the market, and even the single and double color door screens gradually became full color door display. For this reason, Powerful Color has also developed a new full-color door screen specifically with power supply manufacturers.
Since LED display wholesalers mainly use product prices as the main means of competition, there has been a phenomenon that the increase does not increase, or even increase, but loses. According to a self-reported wholesale company in Shenzhen, “the LED display market has been quite exaggerated in recent years. When several billion-dollar companies closed down, they were involved in an alarming amount of money in arrears with suppliers. Then the problem of lending money in the entire display industry became increasingly serious. Now when we buy lamp beads, we usually ask for cash, and other spare parts are in the form of monthly knots. Because wholesale companies are big, labor costs, expenses are a very large amount, and liquidity is not enough. The first thing that affects the supply is supply. If there is not enough supply, it can't be produced normally. It is still the enterprise that can't produce the loss normally. For example, if you buy Mulinsen's lamp beads, Mulinsen asks for cash, and can send and sell every Monday to Friday, but we donate funds. Not necessarily so good, there is no cash purchase before Friday, there may be no lights on Saturday, Sunday and Monday. This happens, it is very sad."
Therefore, the current status of LED display wholesalers is very serious, and the improvement of the capital chain is the key to test its continued survival and development.
The phenomenon of profit is outstanding
Wholesale enterprises do not have the core technical strength, and they do not occupy a favorable active position in the entire industrial chain. On the contrary, in order to obtain meager profits, they do not hesitate to fight the price war, do not seek the lowest, only seek lower, so, the era of profit advent.
Because the entry threshold is low, the LED display wholesale company seems to be able to do everyone, a little money will run in, and there is no money to dare to empty the white wolf, so the display wholesale business is everywhere. As the price of LED display products is transparent, the degree of competition is intensifying, and some display manufacturers have no long-term awareness. As long as they can receive the order, they can do it without losing money. In order to reduce the cost as much as possible, they have to ask suppliers to cut prices. At the same time, price cuts are also weakening the quality of products. LED screens without price bottom line and without quality guarantee obviously overdraw the potential and profit margin of future development. "In particular, conventional display products such as the P10, according to the current price trend, the future is almost the risk of bottoming out."
Profit is the most serious test for wholesalers. If you continue to support the company with a low-cost strategy, then it will not be long-term. Only when enterprises actively save themselves can they defeat their opponents and stay in the end.
The way out for self-help wholesale enterprises
Transforming business ideas from subtraction to addition
In order to end the era of profit, it is necessary for LED display wholesale enterprises to start from their own business ideas, and to abandon the principle of price as the only means of competition, from the principle of subtraction to the principle of addition.
The so-called subtraction principle is to reduce production costs, reduce the price of raw materials, and thus reduce the price of finished products. The principle of addition is to increase the value of products and increase the comprehensive soft power of enterprises to enhance product prices and enhance the image of the industry. The LED display wholesale market is already mixed, the quality of the products is uneven, and the low-quality and low-priced enterprises may be able to gain a certain small market share with temporary confusion, but ultimately they will not escape the eliminated outcome. Transforming business ideas is difficult for display wholesalers, and it is necessary to make up their minds. This change must not only be based on the internal quality of the company, but also change the agreement with suppliers to re-evaluate product quality and quality. Come up, with the product quality of the chips, at least in the market competition, it is also emboldened and healthy.
Integrity management to serve based on the market
Integrity is a manifestation of self-discipline and social responsibility of display wholesalers. Integrity management is both responsible for the company's employees and responsible for the industry. In the era of profit, the LED display industry lacks the spirit of integrity, product quality is not honest, and after-sales service is not honest, etc., all affect the image of the company.
To improve quality with the principle of addition, and to establish a foothold in the market with quality service, this is the two main aspects of the internal improvement of display companies. Services include tracking before the order, answering questions in the order, and after-sales maintenance after the order is completed. Generally, LED display wholesalers have a large manufacturing volume and a large number of orders. The customer groups are not only in the same industry, but also in dealers, agents, contractors, and even private owners and individuals. And the problem is more complicated and diverse. At present, according to the general market regulations, display wholesalers provide products with a one-year warranty. If they return to the factory for repair, they will not provide home repair services.
If there is not much difference in the quality of the products, then the display wholesalers will have better service and higher cost performance. In the future, if LED display wholesalers want to become bigger and stronger, they must improve their products and services to avoid one-off business.
Warm up the group to achieve supplier win-win cooperation
Within the enterprise, we can improve our comprehensive strength by changing business methods, improving product quality, and strengthening service capabilities. Enterprises can strengthen industry cooperation and try to achieve mutual benefit through bundling cooperation with suppliers and partners. In this way, it can not only alleviate the shortage of funds for LED display wholesale enterprises under the background of tight liquidity, but also help them to jointly resist risks, enhance the collective awareness of honor and commonality, and thus guarantee product quality and after-sales service.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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