From last year’s “price rise tide” and storm to today’s “price war”, the LED screen enterprises have undergone a tremendous change. For the LED display industry, it is doomed to be an extraordinary year. The whole Shenzhen LED industry shuffles rapidly, and many display enterprises are struggling.
Opening the footprint of history, we can easily find that the price war did not arise this year. In recent years, due to the continuous changes of competition in the domestic LED industry, enterprises have triggered frequent price wars in order to win more profit space and increase market share. Although price reduction is a very common means of coping with the market competition, the number of LED display enterprises is huge and their products are uneven. Uneven, the trend of price reduction became popular, and then it became irremediable, even triggered a series of industry problems.
The spread of price war has not only led to a great impact on the profits of enterprises, but also a high-cost living environment in Shenzhen. Most enterprises are experiencing the predicament of “increasing income without increasing profits”. Costs force companies to flee, which is by no means an example. As early as 2011, the move of LED screen enterprises from Shenzhen has occurred, and since then relocation incidents have occurred one after another. At the beginning of this year, the Jiangxi government put forward the plan of building Jiangxi LED industrial base, and introduced a series of attractive support policies, which attracted many LED enterprises to settle in.
For the LED display industry, sustained “price war” is not harmful but not beneficial. After all, the price war will lead to the reorganization of LED enterprises, “survival of the fittest” can purify part of the market environment eventually, but it is not feasible to rely on “price war” in order to gain a firm foothold in the competitive market and seek long-term development. However, in the long run, a sustained “price war” will only overdraw the future of led screen companies.