Raw materials continue to soar, what is the future trend of the LED display industry?

09 Apr.,2021

In the blink of an eye, the first quarter of 2021 has passed, and the material gains have not been eased. On the contrary, emergencies such as "Taiwan's giant ship stranded on the Suez Canal" and "U.S. starting machines to print US dollars" have further triggered a large number of raw material price increases.

 

In the blink of an eye, the first quarter of 2021 has passed, and the material gains have not been eased. On the contrary, emergencies such as "Taiwan's giant ship stranded on the Suez Canal" and "U.S. starting machines to print US dollars" have further triggered a large number of raw material price increases. It is understood that the price of raw materials including chips, PCBs, etc. has continued to rise sharply recently and the supply is tight, which has brought more challenges to the operation of LED screen enterprises.


At the same time, everyone in the market is busy looting and hoarding goods, waiting for the first round of the peak season market to detonate, looking forward to this round of hoarding, which can "make money" in the market in the next few months. ; On the other hand, market consumption is still sluggish and weak, especially in many offline dealer channels, consumer demand has not fully recovered, but it is strange that everyone is not in a hurry about this situation, and seems to be waiting and looking forward to receiving The down market broke out.

Raw materials continue to soar, what is the future trend of the LED display industry?

This phenomenon, on the one hand, is that everyone is generally aware that this round of raw material rise cycle has not ended, and it will definitely not end in the short term, so they have always maintained a high degree of confidence and investment; second, everyone is concerned about the next Micro/Mini LED Expected market consumption such as new products, cultural tourism industry, market segments, etc. is full of expectations. After all, after experiencing last year's consumption depression, the rebound in demand and the demand for replacement have inspired LED screen companies to hide their fighting spirit for months and months. enthusiasm. In addition, the current increase in differentiated products and applications also brings the possibility of LED display premiums.


All along, in order to cope with the soaring price of raw materials, LED screen companies on the one hand resolve cost pressures by optimizing the material supply side, on the other hand they improve the degree of production mechanization, increase efficiency and reduce costs. The search for a "differentiated premium element" has become a strategic means for screen companies to regain pricing power, such as the large conference large-screen market that was on fire during the epidemic.


Raw materials continue to soar, what is the future trend of the LED display industry?


By adding functional differences such as intelligence, storage, integration, etc., it has become a magic weapon for LED screen companies to overtake in corners. At present, applications in scenarios including smart transparent screens, smart creative commercial displays, smart landscape lighting, etc., are better able to meet the individual and differentiated needs of the market than traditional LED display products. At present, more and more LED screen companies are exploring differentiation through design, brand, sub-category, engineering retailing, rejuvenation, and technology, which brings more possibilities to their product premiums.

China's LED display manufacturing industry used to have economies of scale, relying on quantity to win, but after entering the new era, LED display companies need to think more about how to enhance the value of their products and win with quality in order to occupy a dominant position in the changing market environment.


Raw materials continue to soar, what is the future trend of the LED display industry?