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How deep is the water in the LED display industry? More than 70% of customers are worried about quality issues!

2019-09-05 13:54

First, low-cost competition into heart disease, product homogenization is "pushing hands"

According to market research statistics, 80.65% of people chose "low price competition" in the question "What do you think is the biggest difficulty in the LED panel industry?" The “product market price chaos” is considered to be the biggest problem, and another 54.84% believe that the “product homogenization” problem is the biggest difficulty facing the industry.

表1 您认为LED屏行业目前遇到最大的困难是什么？（多选）

From the above data, it is not difficult to see that low-price competition has become a stumbling block for the development of LED screen enterprises. However, "the three feet of freezing is not a cold day", the LED display industry has expanded in the early stage, and the "traditional" that has already formed a heavy market, light quality, and neglected differential production has resulted in serious product homogeneity and market advantages of products. Reflected by price.

In recent years, LED screen enterprises have continuously expanded their production capacity to speed up the occupation of the market. However, the fact is not what people want, and the market growth rate has eased, resulting in a serious backlog of many enterprises. At the same time, the product is highly homogenized, forcing the industry to cut prices to compete for market share and reduce inventory. In order to maintain market share, most other companies have to sneak into the ranks of price cuts even if the profit margin is greatly reduced. In the end, the “price war” of the whole industry suddenly broke out. Not only has it further reduced the profitability of the company, but also increased its operational pressure.

In addition, the reason why end users think that the price of the LED display industry is chaotic, in addition to the price fluctuation caused by low-price competition, the user does not know much about the structure of the LED display, and does not know that even the same product, in the materials The difference in manufacturing process and product performance will also cause significant differences in product quality and price. This requires LED display manufacturers to increase product promotion, emphasizing the difference and superiority between products and other products of the same type, so that users can better understand the difference in product quality due to different cost of production.

Second, quality replaces the price, becoming the customer's primary purchase key

Although most manufacturers in the industry have a lot of headaches about the "price war", in fact, LED display buyers have the least price considerations. According to market research data, 77.42% of the purchasers are worried that the quality of the LED display is not good. 58.06% are tired of many brands and the prices are uneven. 51.61% are afraid of bad after-sales service. 41 .94% worry about too many suppliers, do not know how to choose. In contrast, prices have become the most “insignificant”, with only 16.13% worrying about spending more money.

Table 2 What problems have you encountered in purchasing LED screens (multiple choice)

According to the survey data, the current user sensitivity to price is significantly lower than before, and the quality, brand and after-sales are the key considerations. In fact, in recent years, LED display fires and other security problems have occurred, and even easy to bring personal safety problems, so that users are chilly. In addition, the LED display price is relatively high, and usually requires professional maintenance. In case of failure, the cost of re-purchasing is too large, so the after-sales maintenance by the manufacturer or the channel provider becomes the most economical and convenient choice for the customer. From the perspective of the buyer, it is not difficult to understand the three major factors of quality, brand and after-sales, why it has become a key point of purchase.

However, such results still have some "taunting" meaning: when the industry's LED display manufacturers are "big-selling" on the price side, while worrying about profits, customers have already changed the idea that "price determines everything." Does this mean that LED display manufacturers should refocus on the products and services themselves, in addition to focusing on price factors? Production activities at the expense of quality have seriously affected the quality of the products. In the end, "the wool is on the sheep", and only the users pay for it. What's more, the company's profit margin is compressed, which in turn will affect a series of basic services such as after-sales, so that customers have nowhere to turn for help. Undoubtedly, when the after-sales service plagued the customers, their satisfaction and trust in the company and the brand will inevitably be greatly reduced. In the long run, there is no harm to brand building.

Therefore, LED display manufacturers should re-recognize the needs of end users, focus on product quality and after-sales service, and provide users with a high quality and low price product and service according to different customer levels and needs. .

Third, the payment default is "normal", the brand is missing into trouble

In response to the question “What problems have you encountered in the project construction project?”, 83.87% of the LED screen enterprises indicated that they had encountered “the situation of Party A’s default on payment”, and 31% believed that “the terminal application was on the product”. There is no brand concept, 83.87% of people think that "manufacturer technical services are not in place."

Table 3 What problems have you encountered in the project construction project? (multiple choice)

In recent years, the problem of defaulting on payment in the LED display industry has caused widespread concern in the industry. End users are in arrears with the payment of engineering merchants, which causes the engineering company to default on the LED screen enterprise and form a “triangular debt” phenomenon. Even at the end of last year, some seemingly well-operated LED screen companies were dragged down by “triangular debts”, and the funds were not well-functioned and eventually they could only close down.

In fact, in response to this problem, some LED screen companies have already joined hands with companies such as the middle and upper reaches of the control card to restrict the display, so that the user must pay the purchase price on time, in order to obtain the unlock password from the seller to use the display. . Although this practice is full of positive energy, the effect is not obvious. On the one hand, the behavior of the Chinese people to "drill the loopholes" has formed a habit. Even if the manufacturers try to make restrictions on the technical level, the buyer still tries to break the restrictions. It is quite "one foot high and one foot high"; on the other hand, the buyer The gradual formation of the market makes the dominance of buying and selling activities in the hands of customers. They can easily reject the requirements of manufacturers and switch to other brand products, which inevitably creates hidden “threats” for manufacturers.

In addition, the brand issue is also one of the focuses. The industry generally believes that the terminal application does not have a brand concept for the product. But in fact, most LED screen companies are seriously lacking in brand building, which is one of the reasons for this phenomenon. For a long time, many companies believe that the LED display circle is small, there is no need to vigorously promote the brand, only the word-of-mouth construction can be done. However, as the scale of the LED display market continues to expand, merchants who have not touched the LED display in the past have begun to consider using such products. However, since the LED screen enterprises are still relatively conservative in promoting the brand, the brand awareness of the LED display is generally not high. . This not only limits the market expansion of excellent brands, but also causes trouble for the purchase of the business, and even further hampers the LED display industry's development of the display market.

As the integration and upgrade of the LED display industry accelerates, industry problems will inevitably be further intensified, and LED screen enterprises will face greater pressure and challenges. By then, whether it can meet market demand, occupy a certain market share or become the key to the survival of enterprises. From the survey data, if screen companies want to achieve greater development, they can no longer be lost in the fog of price, but need to work hard on product quality, after-sales service and brand building.

(Source: HC LED screen)