The impact of rising prices on the industry
LED upstream industry chain PCB industry has entered the peak season one after another, and the price of PCB products is expected to go higher, which will form a strong support for LED display.The second half is also the traditional peak season of LED display industry, and the huge market demand in the downstream is about to release.In particular, the application of small spacing screen is expected to usher in a new round of LED industry.As the economy of the upstream and downstream industrial chain gradually booms, the profitability of related companies is expected to improve.
The overall price increases reflect the value of the industry, of course, not to make the display screen unaffordable.In addition to alleviate shortage of industry enterprise r&d investment, but also to the industry for a long time in the "price war" has brought a lot of positive influence to the real good products from the "low vortex" regulators-had begun to pull away, pull open price level, industry competition need to go back to the rational level, and take the initiative to rise in price is definitely a good start, more conducive to industrial development.
LED display industry is a highly integrated industry, and various parts and components in the middle need to be purchased, which enables many channel manufacturers to breed, purchase raw materials from upstream manufacturers, assemble them, and buy them from downstream manufacturers.The intermediate links become very many, very complex, but there is a specialized industry, they focus on assembly, so that downstream manufacturers free energy, get away from the tedious procurement, assembly links, better run their own enterprises.More links, procurement matters for many enterprises in the industry more important, which is worth talking about more things.
In such a wave of price increases, many companies also calculating oneself want to don't increase the price, but just when everyone is considering to don't increase the price, represented by powerful giant colour in the brewing of price cut, strange to say, the PCB maker of upstream prices notice, supposedly procurement in the upstream parts should be cost increased, how powerful giant colour and some products price action?
As is known to all, qiangjucai is an LED display enterprise that attaches great importance to developing channels. It is one of the companies that have developed the best channels in the entire LED display industry, which also makes its cooperation with upstream and downstream manufacturers become closer.The reason why I choose to reduce the price of some products at this time is that strong color has a strong ability to digest the price. Its complete supply chain has formed a saying of "strong system" in the industry. Attaching importance to supply chain management makes strong color have a strong control over the cost and gives strong color space for price selection.In the industry with the same type of enterprises because the upstream manufacturers and with the same type of enterprises product price increases passively time, strong color can have more options.
It is not only the powerful color that attaches great importance to procurement and supply chain management, but also the downstream LED display manufacturers. Abby sen, one of the few listed companies in the industry, is a company worth mentioning.Abby's purchasing department has a complete procurement system, and the number of people is more than ten with strict procurement requirements. Many companies only have four or five people in their purchasing department, some even fewer.Abelson's management of the supply chain makes the cost control of the upstream components of abeson reach a certain level.
There are many problems of procurement in the industry, and it is difficult to curb the phenomenon of shoddy goods. The increase of cost makes some enterprises sacrifice product quality even more.Many powerful upstream manufacturers will require spot trading when the downstream manufacturers come to purchase, which is itself a difficult problem for some middle and downstream enterprises with insufficient capital management in the industry. The price rise this time makes the problem worse.A failure to pay attention to procurement will have more serious consequences.