How To Break The Dilemma Of Rising Raw Material Prices?

The state puts raw materials into the market, which alleviates the tight state of the LED industry chain. The upstream raw material suppliers have more metal materials, and the hot raw materials are expected to obtain replenishment space. The downstream LED large screen manufacturers can also plan to expand production and increase profits. Compared with the previous price rise of the whole chain, this measure is undoubtedly to cool the volatile market and promote the market to return to a stable development situation. For LED screen enterprises, the national action means that the opportunity is coming. How to follow the trend in the cycle of return to stability of raw material prices depends on the strategic thinking of screen enterprises.

The price rise wave and storm came again, and the state took action to stabilize the situation

Since the previous year, the price rise tide has been repeated, gone and come again, and the LED industry has been suffering for a long time. As soon as the upstream raw materials are out of stock, the prices of the middle and lower reaches have to rise one after another in order to obtain profits and obtain living space. Therefore, the product prices of the whole industry rise step by step, and the profit space is becoming narrower and narrower. In choosing products, users not only consider the demand and sense of experience, but also price is one of the important considerations. In the face of LED display products with rising prices, users prefer products with high quality and low price when the product quality is equal. Some LED display enterprises are in a dilemma. On the one hand, due to the rise in the price of upstream raw materials, they are forced to choose to increase the price to obtain profits to maintain their business. The original customer group is deterred after seeing the rise in product prices, and the customer loss of enterprises is serious; On the other hand, the terminal shows that if the enterprise does not raise the price and continues to maintain the price of original products, the profit will be diluted, and the profit is the foundation for the enterprise to develop higher. Without the profit, it is difficult for the enterprise to maintain its daily operation, and it is difficult to be caught between the upstream end and the customer. This situation has lasted for a long time. Every time the price rise tide makes a comeback, it has brought a great blow to LED screen enterprises.

In view of this situation, the state has successively put metal materials such as copper, zinc and aluminum into the market to stabilize the market price of raw materials upstream of the industrial chain and further depressurize the LED product market. As an essential raw material in the LED industry chain, copper, zinc and aluminum are widely used in PCB boards, kits, locks and other supporting products. The release of raw materials to the upper reaches of the LED industry chain has blown a calm wind. Raw material manufacturers and suppliers hoarding goods should understand the national measures and avoid getting involved in unnecessary trouble.

The state has brought great positive influence to various industries by taking this action. On the one hand, it greatly eases the pressure of small and medium-sized enterprises in the face of rising purchasing cost and tight supply channels, and makes them have more opportunities for development and stable market operation; On the other hand, we should strengthen macro-control, and take measures when the market itself cannot adjust properly, supervise the market, crack down on a series of illegal acts such as price inflation and odd stock that disrupt the healthy development of the market, and resolutely safeguard and coordinate the balance of interests of enterprises and customers.

After the relevant departments put in copper, aluminum and zinc raw materials, the response of LED screen enterprises should be positive. With the national macro control of the market, it will not fall into the endless storm of price rise, which will help the development of LED screen enterprises to a certain extent. What should LED screen Enterprises do? First, reasonably plan the distribution of raw materials, maximize the utilization of resources according to the enterprise's own strategic planning, and master the trend adjustment of national policies; Secondly, technology is still the main driving force. Technology is the core of all enterprises. Increase technology investment, develop raw materials and save technology, and take the lead in technology; Finally, in the after-sales service management system to achieve the ultimate, only by giving users the best consumer experience can we win repeat customers.

The rising price tide has spread all over the world, and the export is transferred to domestic sales or the profit growth point of Chengping enterprises

With the action of relevant national departments, the difficult development of LED screen enterprises has been alleviated. With the continuous improvement of China's vaccination rate, the epidemic situation also tends to be stable, and all aspects of production are carried out in an orderly manner. The global LED screen production capacity is concentrated in China, and the demand of domestic LED industry is growing. The tide of rising prices of raw materials has spread all over the world. In addition, the repeated epidemic in foreign countries has reduced the scale of foreign market demand. Some screen enterprises focusing on foreign markets have exported to domestic sales. Foreign LED production capacity is reduced by the epidemic, which is a great development opportunity for domestic terminal display enterprises.

It is understood that in addition to the year-on-year growth of overseas revenue, the domestic market demand continued to grow in the first half of this year. According to industry data, large LED display manufacturers began to adjust their strategic focus last year and transferred to China one after another. Although the current external environment is in an unfavorable situation, China has a large-scale domestic market, which is of far-reaching significance for forming a "new pattern of double cycle development dominated by domestic cycle and promoted by international and domestic cooperation". It is not wrong for enterprises to change their strategies and actively respond to market changes, but if some LED display enterprises engaged in foreign trade want to enter the domestic market, they should not only solve the problem of "acclimatization" of their products, but also seriously understand the change law of the domestic market. The demand for orders in the domestic market has increased, but for foreign trade enterprises accustomed to order production, inward transformation is not easy. Enterprises must re understand the needs of domestic consumers, otherwise they may lose themselves in the huge domestic demand market and become "the most familiar stranger". In the Internet era, LED screen enterprises need to put consumers and users in the center, highlight competitive advantages, stand out in many product markets, optimize after-sales service system and seize opportunities. It is not an overnight thing to realize the transformation from export to domestic sales. If LED screen enterprises want long-term development, the foreign market can not be completely abandoned. After overcoming the current survival difficulties, they can take the road of taking the domestic market cycle as the main body and the international and domestic market double cycle, so as to achieve parallel legs and make the development of enterprises move towards the future.

The price of raw materials is rising, and how to deal with it at all ends of the industrial chain is the king's way

Exploring the development path of export to domestic sales is a great opportunity for LED screen enterprises. In terms of the development environment of domestic LED industry chain, the price of raw materials is a difficult problem that has troubled the industry recently. The rising price of raw materials has brought varying degrees of impact to all ends of the industrial chain, so all ends should be active and promising in the face of this situation, and allowing its savage growth is bound to cause shock and subversive changes to the whole industry market. When the upstream raw material manufacturers and suppliers are really out of stock, leading to price increases, they need to change their thinking, vigorously invest in the updating of raw material technology, and develop more material-saving chips. Fundamentally, only when the upstream price tends to be stable, can the downstream products better meet the market demand. The upstream supply chain has a cold relationship with the end product manufacturers. The prices of raw materials in the upstream are rising uncontrollably, and the end display manufacturers have to raise prices to cope with the market situation. For the end display users, when the price rise exceeds their cost budget, they can give up purchasing. As a result, the efficiency and profit of the terminal display manufacturers will be reduced, which will lead to a reduction in the demand for raw materials. Finally, the upstream supply chain will ship less goods, which will eat its own fruit and bite itself.

In fact, the middle and lower reaches of the parts factory and the terminal display factory can also adjust their ideas. First, if the economic strength permits, the one-stop industrial line from raw materials to products is self-sufficient, there is no middleman to earn the price difference, and it is easier to trace the source of problems in product after-sales service, so as to build a high-quality industry from the upstream end to the middle and downstream end. Of course, to build such a huge industrial chain requires strong economic strength and technical support, and development can not be achieved overnight. We must do real research on the whole industry, which is a long-term layout process. Second, for some small enterprises that have just started and developed, they can find the best substitute for raw materials when they can not fully ensure the complete original raw material supply chain. They should be raw material substitutes with comparable quality and more favorable price. If there are no such substitutes in the existing market, enterprises can also reasonably plan and put into operation according to their own raw material reserves, optimize the product structure, actively seek new market areas, Nuggets segment the market, strengthen technological innovation and tap new business opportunities.