Shenzhen's Full Unsealed, LED Display Application Industry Ushered in A Major Positive!

After the release of the letter of Shenzhen unsealed, the LED display application industry has caused a great response. From the Secretary General of the industry association to the general enterprise employees, this important good news is transmitted in the circle of friends. It can be seen that the epidemic situation has an impact on the LED display application industry in Shenzhen. Since the outbreak of last year and sporadic outbreaks in Shenzhen, Shenzhen LED display application industry has been suffering from it.

Repeated outbreaks interrupt the rhythm of normal operation of the industry.

The two trade exhibitions originally planned to be held in February this year were forced to postpone to April and may this year. Industry exhibition has always been an important platform for enterprise market development. The postponement of last year's and this year's exhibitions has a great impact on the enterprise's annual market development plan. The postponement of the exhibition will disrupt the normal production plan of manufacturers; Generally, manufacturers will put new technologies into production ahead of schedule according to the previous year's progress. However, because new technologies can not be promoted, manufacturers can not continue to launch new products as planned, resulting in extended capacity climbing cycle. In addition, manufacturers in the past will sign orders at the exhibition to collect funds, and the delay of the exhibition will increase the pressure on funds.

Epidemic intensifies competition in domestic market

In the face of international COVID-19 is still spreading, the domestic outbreak is sporadic, and the international form is grim. Many export oriented LED screen enterprises have been blocked by international business. Many LED display enterprises have turned their hopes and eyes to the domestic market and vigorously explored the domestic market. These competitive enterprises have caused the catfish effect and intensified the competition in the domestic market, promote the industry integration and accelerate the display industry concentration. In the final analysis, the competition is the competition of brands, channels and other comprehensive strength. With the competition of LED display industry in 2021, it has entered a new track dominated by the competition of head enterprises. The head enterprises are in a relatively dominant position and occupy the survival space of some small and medium-sized enterprises.

The epidemic situation, with the increase of raw material prices and the shortage of key components, affected the whole industry.

The spread of the epidemic has pushed up the global commodity prices. The price rise of raw materials has begun to take shape since the second half of 2020. Copper, iron, aluminum, plastics and so on are all rising by more than 30%. After the Spring Festival this year, they are soaring by more than 10%. This has also led many industries using this as raw materials to face the pressure of rising costs, and the LED display industry is also inevitable. The rise of raw materials has caused a huge impact on the manufacturers of lamp beads, driving IC, PCB board, aluminum box, frame kit and other basic components in the upstream supply chain of LED display. As an important part of the industrial chain, the cost pressure is naturally further transmitted to the manufacturers of LED display, making the whole industrial chain facing a severe test.

This round of price increase has a particularly severe impact on Shenzhen enterprises

As the global LED display industry center, Shenzhen has formed a complete industrial chain of LED displays from raw materials, lamp beads, driving IC, chips, packaging, application products and related supporting industries, as well as industrial clusters applied in various subdivided fields. At the same time, driven by the rapid development of new technologies and market demand, In addition, new industrial bases and cluster centers have been set up in the surrounding areas of Shenzhen, which has promoted the development trend of LED display industry from "one center and multiple directions", and has formed a pattern that Shenzhen's LED display is supplied to the whole country and Shenzhen's LED display is supplied to the whole world. Due to the restriction of the flow of people by the epidemic situation in Shenzhen, the development activity of the industry has been restrained to a certain extent, and the development of the whole industry has also been overshadowed.

Particularly positive development

Shenzhen can quickly control the epidemic situation, and bring great benefits to the LED display application industry. The industry prospers because of people, and the orderly flow of people can bring huge economic effects. As an important LED display application industry base in China and even the world, the LED display application products supplied by Shenzhen are widely distributed in the global LED display application market. The irreplaceable advantages of Shenzhen LED display application industry have also been fully reflected during the period of epidemic blockade. Some of the merchants who need to be inspected or purchased can only communicate or sign a contract remotely, which makes it very inconvenient for many customers to complain. The release of the epidemic will make the industry vitality reappear, and will produce sustained explosive power. Many enterprises will fight hard to recover the loss of the epidemic.