From 2017 to the present, from last year’s “price increase” and storm to today’s “price war”, LED screen companies have undergone an earth-shaking change. For the LED display industry, 2017 is destined to be an extraordinary one. In 2009, the entire Shenzhen LED industry shuffled rapidly, and many display companies were struggling step by step.

Looking at the historical footprint, it is not difficult to find that the price war did not just arise this year. In recent years, due to the continuous changes in competition in the domestic LED industry, companies have triggered frequent Price wars, although price reductions are a common countermeasure under market competition, the large number of LED display companies and their products are uneven. After price reductions became popular, they became irresistible, and even triggered a series of industries. problem.

The spread of price wars has not only greatly affected the profits of enterprises, but also added to the high-cost living environment in Shenzhen. Most enterprises are experiencing the dilemma of "increasing revenue but not profit". Costs force companies to flee, which is by no means an exception. As early as 2011, there was already a move for LED companies to move out of Shenzhen. Since then, relocation incidents have occurred one after another. At the beginning of this year, the Jiangxi government put forward a plan to build an LED industry base in Jiangxi and introduced a series of attractive support policies, attracting many LED companies to settle in.

As far as the LED display industry is concerned, the ongoing "price war" is not without all harms and benefits. After all, the price war will cause the reorganization of LED companies. "Survival of the fittest" can ultimately purify part of the market environment. However, if you want to gain a foothold in the fiercely competitive market and seek long-term development, relying on the "price war" will not work. . However, in the long run, the ongoing "price war" will only overdraft the future of various screen companies. If an enterprise wants to solve the problem fundamentally and increase its competitive bargaining chip, it is recommended to start with the following aspects:

　　1, to ensure a clear product structure, implement a strategy of high-end products earning high gross profit margins, and low-end products engaging in a "price war" strategy. Through this "layered" tactic, a certain profit margin is maintained, so that the company is not easily dragged down by the "price war".

　　2, strive for more "hidden" profits, so that the company can achieve diversified profits. Business operations can be more flexible, starting from the overall layout, realizing a multi-industry, multi-channel, and diversified business model, increasing "hidden" returns, and diversifying business risks.

　　3, improve product quality, improve product details, so as to improve product bargaining power and increase profit margins.

　　4, pay attention to brand building, and release brand charm as much as possible in product trademarks, shape design, outer packaging, etc., and then cooperate with product quality and service to give the brand real meaning and increase the brand's premium ability.

　　5, optimize the industrial chain internally. Sort out the production process of products, reward and implement suggestions that employees can improve product quality or work efficiency, so as to reduce production and operation costs.

Huang Qingfeng, the chairman of Lianchengfa, also has his own unique insights on avoiding the "price war". Here is written and shared with industry professionals: For small and medium-sized LED screen companies, the most thorough, effective, but also the most difficult way is to improve Innovative ability, concentrated research and development of competitive products, and achievements in the field of high and new technology, can withdraw from the fierce competition of homogenized products, complete the transformation of the enterprise, and make the enterprise in a superior position.