Shenzhen epidemic is under control, full color LED display application industry ushered in major benefits
The repeated epidemics interrupted the normal operation of the full color LED display industry.
The two industry exhibitions that were originally planned to be held in February of the year were forced to postpone them until April and May this year. Industry exhibitions have always been an important platform for enterprises to expand their markets. The postponements of the exhibitions last year and this year have had a great impact on the annual market expansion plans of enterprises. 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 progress of previous years. However, due to the inability to promote new technologies, manufacturers cannot continue to launch new products as planned, resulting in a prolonged production ramp cycle. In addition, manufacturers used to sign orders at the exhibition to return funds, and the postponement of the exhibition will increase the pressure on funds.
The epidemic has intensified the competitive landscape in the domestic market.
In the face of the spread of the international new crown epidemic, domestic epidemics occur sporadically, and the international situation is severe. Many export-oriented LED display companies have encountered obstacles in their international business expansion. Many full color LED display companies have turned their hopes and eyes to the country and vigorously Exploring the domestic market, these competitive companies have triggered the “catfish effect”, intensified competition in the domestic market, promoted industry integration, and accelerated the industry concentration of full color LED display industry. In the final analysis, the competition is ultimately the competition of comprehensive strengths such as brands and channels. As the LED display industry enters a new track dominated by the competition of leading enterprises in 2021, the leading enterprises are relatively in a dominant position and are even more squeezed. The living space of some small and medium-sized enterprises.
The epidemic has superimposed the price increase of raw materials and the shortage of key components, affecting the entire industry.
The spread of the epidemic has pushed up global commodity prices. The rise in raw material prices has begun to take shape since the second half of 2020. Copper, iron, aluminum, and plastics have all increased by more than 30%, and after the Spring Festival this year, they have increased by more than 10%. The growth rate of the LED display has jumped wildly, which has also caused many industries that use this as raw material to face the pressure of rising costs, and the LED display industry is also inevitable. The increase in raw materials has caused a huge impact on the manufacturers of basic components such as lamp beads, driver ICs, PCB boards, aluminum boxes, and frame kits in the upstream supply chain of LED displays. As an important part of the industry chain, cost The pressure is naturally further transmitted to LED display manufacturers, making the entire industry chain face a severe test.
This round of price increases has a particularly severe impact on Shenzhen enterprises.
As the center of the global LED display industry, Shenzhen has formed a complete industry of LED displays from raw materials, lamp beads, driver ICs, chips, packaging, application products and related supporting industries. Chains and industrial clusters applied in various subdivisions. At the same time, under the rapid development of new technologies and market demand, new industrial bases and cluster centers have been established in the surrounding areas of Shenzhen, which has promoted the LED display industry from “a center The development trend of “multiple directions” has formed the pattern of Shenzhen LED display for the whole country and Shenzhen LED display for the world. Due to the restrictions on the movement of people due to the Shenzhen epidemic, the development of the industry has been inhibited to a certain extent, and it has also cast a shadow on the development of the entire industry.
Shenzhen’s ability to quickly control the epidemic will bring major benefits to the LED display application industry. Industry is prospered by people, and the orderly flow of people can bring huge economic effects. As an important LED display application industry base in the country and even the world, the LED display application products supplied by Shenzhen cover the global full color LED display application market. The irreplaceable advantages of Shenzhen’s LED display application industry have also been fully demonstrated during the epidemic. Some merchants who urgently need to inspect or purchase can only use remote communication or contracting, which has caused many merchants to complain about the inconvenience. The unblocking of the epidemic will bring the industry’s vitality back, which will produce sustained explosive power. Many companies are eager to take back the losses lost by the epidemic.
The second half of the year will be a critical period for the development of the LED display application industry. Whether the industry can make a beautiful turnaround this year depends on the performance of Shenzhen LED display companies. “Thousands of sails passed by the side of the sunken boat, Wan Muchun in front of the diseased tree.” After experiencing the baptism of the epidemic and the crisis of rising raw material prices, Shenzhen’s LED display industry will face new challenges with a more stable posture.
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