Only By Virtue Of Wisdom,Can China's LED Display Manufacturers Win

What is the most popular thing in LED display industry?Nothing is more exciting than the news that screen prices are falling.China’s LED display manufacturers are eager to try,and the whole industry is boiling.With the annual slack-business season is to come,an industry-wide price war seems to be on the way.People in the industry all know that many LED display manufacturers have something to do more than just compete for market prices.The overall market pattern of the current LED display industry has clearly started to turn again:supply exceeding demand,many LED display manufacturers and dealers are in the inventory dilemma.
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Recently,many manufacturers have complained:the pressure is too high in 2017.Every month the manufacturer forces the dealer to stock up.As there is really no way,we must go ahead!But the price of the product is going downhill and falling.Even if I finish the task of getting the goods this month,I will have to sell it as soon as possible,otherwise it will only be worse next month...

In fact,not only dealers suffer,but manufacturers also have a lot of pressure.We ponder the reason why LED display manufacturers reduce the price collectively,which is definitely related to the cost pressure of upstream raw materials.It is understood that since last year's large-scale addition of automation equipment in the screen factory,the sealing factory is also continuously adding equipment.But the reality is that there is not so much market increment,and now some packaging enterprises can only drop the inventory.As we all know,the biggest cost of LED display is the lamp,if the price of lamp falls,the screen will follow,and the end product will also follow the trend.
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Now the price of most upstream raw material has started to go back.This is undoubtedly a relief to many manufacturers who have been weighed down by raw material prices.But at the same time,many of the manufacturers that had been stockpiling have been weakened.They have to digest the inventory before the market really reacts,as the status of many manufacturers is:the price is lower every day,so they hope to sell more goods.The same inventory pressure has also been passed on to many dealers,and many dealers are afraid to stock up,because if the price declines,the unsold goods will depreciate.The fact that the raw material continue to increase prices not only makes the manufacturers miserable,but also makes the screen manufacturers miserable which stockpiled too much goods.I believe we all see the problem here,in fact,the dealers had a lot of goods to stock up,the manufacturer achieved the temporary impulse,but the sales volume did not achieve real growth.The market capacity remains unchanged,you just overdraw the market.Shift the manufacturer's inventory to the dealer,not only in the long run,will damage the dealer's interests,but also this unhealthy marketing approach will hinder the development of the manufacturers.

Therefore,manufacturers should also play a good match,the next terminal promotion must not just float on the surface.In addition to deepening the channels,so that the channels continue to sink,we should also get rid of the past“slack-season market operations"thought.We should continuously improve dealer policies and help them to digest inventory as soon as possible.Only LED screen manufacturers better improve their products and understand the customer demand,so can we achieve win-win in this big PK.

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