LED display "price war" accelerated industry reshuffle enterprises in urgent need of transformation

Many companies say, in the LED display market economy competition, they are "forced" into the "price war" smoke, especially the small and medium-sized enterprises without the brand effect, under the dual system of strength and scale, they cannot compete with the giant positive, only by lowering the product price, constantly create products price advantage, to seek to survive in the cracks of profit. However, since ancient times, quality and low price cannot be both. The ultimate goal of enterprises is to make money. Under the premise of lower price, in order to strive for greater profit space, most enterprises choose the marketing policy of "emphasizing price, ignoring quality" and pay more attention to cost control in the production process, while abandoning product quality and innovation. Over time, the LED display industry is all the same standardized production, not only the homogenization phenomenon is becoming more and more serious, leading to a large number of inferior products into the terminal market, but also overdraw consumers' trust in the product, let customers talk about "screen" color change.

Undoubtedly, this "price war" not only intensifies the vicious competition in the industry, but also intensifies the degree of concentration in the LED display industry. In the market competition, some enterprises that do not have a thorough analysis of their own enterprise capital chain break in the process of "price war", and they can only choose to go bankrupt because of the heavy burden. Some enterprises lack independent intellectual property rights and core competitiveness, "price war" is equivalent to drinking poison to quench thirst, short term or can solve the problem, but in the long term will undoubtedly hit the enterprise's innovation consciousness and subjective initiative, accelerate the speed of industry shuffling.

As the saying goes, "time is the only criterion to test the truth". After several years of market testing, many negative effects brought by the "price war" gradually emerge. The terminal market no longer blindly pursues the low price of products, but starts to call for the return of product quality. At the same time, with the continuous maturity of the technology and market system, the demand for high-end display applications, including cinemas and security monitoring, is increasing, and more diversified and personalized production requirements are proposed to LED display manufacturers. With the growth of the market, the benign development of LED display industry is stimulated in reverse, and major enterprises begin to jump out of the "price war" of products and turn their targets to the customized high-end display field, and one after another, they are specialized in exploring the high-profit application market.