LED display industry price to value

[Source: LED Engineering's "good products LED" magazine September issue of text / Yang Lichang] China as the world's factory, any product you want to reduce production costs, global buyers naturally think in domestic procurement, this phenomenon has spread to domestic LED display industry. In the past two or three years, I have had a deep feeling about several phenomena in China.

First, from 2011 to 2012, many LED display manufacturers are listed for trading. The quickest way is to significantly reduce the price of products and reach the scale of revenues that can be listed and traded. The price war will kick off.

Second, in 2012, LED display manufacturers' general performance was generally poor, mainly due to the continuous expansion of large-scale LED display manufacturers, in an attempt to squeeze small and medium-sized manufacturers out of the market. Although the revenue has grown, the profit margin is only about 5%, which has led many domestic manufacturers to work hard, and the closed visions of Optoelectronics, Big Eye, Haobo Optoelectronics, Shenzhen Yiguang and Shifang Optoelectronics have become price wars. The victim.

Third, most of the LED display manufacturers are based on the "how much money a square meter sells or how much each light point" as a product introduction, expecting to exchange orders at low prices, in exchange for a very unstable market share. This strategy has indeed succeeded in attracting foreign buyers who want to buy low-cost LED displays to go to China to seek prices. This can be confirmed by the obvious increase of foreign buyers of Guangzhou LED Exhibition from 2012 to 2013, and the price has become the only appeal at the exhibition. .

The vigorous development of domestic LED displays has been vividly demonstrated in the international activities hosted by the country in recent years. For example: the 2008 Beijing Olympics and the 2010 Shanghai World Expo have opened the eyes of the world. Domestic LED display manufacturers have refined their technology in LED, driver IC, PCB board and cabinet design, which is enough to compete with international competitors. In addition, these manufacturers are actively participating in major global exhibitions and successfully Alliance with European and American manufacturers, but why can these valuable experiences and technologies not be successfully converted into their value, increase profit margins, and in exchange for customer loyalty to the brand?

>>>Unfinished , please refer to the September issue of Gaogong LED 's " LED Good Products" magazine.

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