Introduction: In the second half of the year, a new round of price increases has begun.
edit 丨 Outdoor advertising reference
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5 Finally burned to the downstream terminal enterprises. Starting in late June, LED display suppliers Dayin Technology, Leyard , Unilumin Technology and Haijia Group have successively issued product price adjustment notices.
Many suppliers have raised prices one after another. What are the reasons? How does this affect the outdoor advertising industry? This time, the author will discuss these issues with you.
※ Written in front: The following are only some of the author's humble opinions based on industry observations. Welcome colleagues to leave messages to discuss and supplement relevant insights on LED supply chain price increases. If there are errors, please correct them!
01
halfway through 2021,
A number of LED display industry chain manufacturers announced price increases
strong51 strong51 announced on June 28th, strong 51strong China Investment Co., Ltd. Notice of price adjustment of LED modules and driver products. Signify has decided to adjust the suggested retail price of LED modules and driver product lines starting on June 29, 2021, with a recommended increase of 5-10%.
Signify price increase letter
On the evening of June 29, AICA issued an announcement on the price adjustment of the company’s products. The announcement showed that the overall raw material price adjustment was affected by the epidemic and the major international It is decided to raise prices ranging from 10-30% for different series of products from July 1st, and the price adjustment will be implemented with the signing of a new contract on July 1, 2021.
Eclat price increase letter
On June 30, LED driver chip leader Jingfeng Mingyuan issued a price adjustment letter again. The text shows that starting from July 1, 2021, All previously effective but not yet fully delivered orders and new orders are subject to the adjusted new price.
Jingfeng Mingyuan price increase letter
On June 30, Leyard issued a price increase notice, announcing that it will adjust the full range of indoor and outdoor products based on cost changes. The next day, Unilumin Technology notified the price increase on July 1, and decided to adjust the price of the display product lines of the group and implement the validity period management. The specific situation is subject to the latest product sales price and related policies announced by the company. Follow-up The price will also be adjusted in time according to market conditions.
Leyard price increase notice
Unimin Technology price increase notice
In addition, Dayin Technology and Haijia Group also announced price increases. Increase the range. The price of the full range of DANACOID brand products of Dayin Technology has been increased by 10%-20% from July 1st. On July 2nd, Haijia Group decided to increase the price of the full range of products supplied by the company by about 10%. Many LED suppliers such as Jichuang North, Hongsheng Optoelectronics, ON Semiconductor , Mulinsen Lighting, etc. have adjusted their prices to varying degrees.
According to incomplete statistics , in the first half of this year, more than ten LED suppliers have announced price increases for their products. It should be noted that since January 5, 2021 , Jingfeng Mingyuan has successively issued 6 "Price Adjustment Notification Letters". From the perspective of demand, LED applications represented by are in strong demand. Under the dual role of supply and demand,LED price hikes are intensifying.
LED display industry chain Q3 price increase situation at a glance: Aiji micro
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strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 strongspan5 Finally transmitted to the terminal
After consulting the data, the author found that the price increase of the LED display was mainly caused by the shortage of upstream chips. In fact, affected by the epidemic, the supply of LED chips has been very tight since the second half of last year. However, in the context of rising bulk commodities and relatively strong downstream demand, industry chain companies have raised product prices one after another.
In April this year, LED chip supplier Sanan Optoelectronics announced an increase in product prices by 8%~10%; driver IC suppliers such as Fuman Electronics and Ming Microelectronics have also followed up and released one after another In the price increase letter, the pressure of price increase continues to be transmitted downwards, and all links of the LED display industry chain have announced price increases.
read through the price increase letter of Leyard and Unilumin Technology and found thatBoth emphasized that the sharp rise in the prices of upstream raw materials such as semiconductor chips, PCBs, and lamp beads has led to rising LED product costs, which in turn triggered the company's price increases. It is worth noting that it has only been more than one month since Leyard announced the price increase last time. Unilumin Technology also issued two price increase notices in June and July. It can be seen that prices in all links of the LED display industry chain have increased. , The pressure is finally transmitted to the terminal manufacturers.
It is understood that the global economy is gradually recovering in the later period of the epidemic, the market demand is warming up, and the demand for LED displays has also increased. Benefit from 5G, 4K/8K ultra-high-definition display and other technological upgrades, fine pitch/fine pitch The rapid growth of the LED display market, this view has also been recognized by LED manufacturers.
The person in charge of Unilumin Technology mentioned in a media interview that the small-pitch LED screen has reached a stage of relatively high cost performance, from the traditional government-based to the current rapid commercial application, such as Commercial complexes, naked-eye 3D, outdoor screens, etc., have gradually begun to be widely used. The relevant person in charge of Ruifeng Optoelectronics added that from the source, global production capacity has been reduced to a certain extent, but the epidemic has gradually improved, and consumer spending power has begun to gradually increase, and the peak season is about to enter. , So at present, the overall demand for LED is very high.
In fact, the price increase in the LED supply chain did not start this year. As early as 2016, LED screen companies received price increase "notices" from major LED companies in the upper and midstream. The reason for the price increase is due to the high cost of gold wire and silver bracket, the core components of LED devices.Coupled with the continuous increase in labor costs, the price increase of LED products seems imperative.
From this point of view, whether it was five years ago or now, the main reason for the successive price increases in the LED industry is the lack of raw materials. In 2021, affected by the epidemic, has insufficient production of raw materials upstream of the industrial chain However, downstream demand is still strong, leading to a shortage of supply, and price increases have become an inevitable trend.
03
LED supply chain price increase, what impact does strong?
With the continuous improvement of the market system, the scale of media resources, the integration of industrialization, and the innovation of technology and technology, outdoor LED large screens, with their wide audience and rich expressions, have become a reality. Become an important main force in outdoor advertising. At present, with the price increase in the LED supply chain, what impact will it have on the outdoor advertising industry?
First of all, supply chain materials rise,Will have a certain impact on the cost of the LED screen . The LED display is mainly composed of a display module, a power supply, a cabinet, and a cable power cord. Among them, the module has the highest cost, and the price difference between the lamp beads and chips used is also large, and the price of the screen usually accounts for the total price of the quotation. More than 70%.
So, will cause some companies that originally planned to upgrade big brands to LED screens to temporarily abandon the transformation of the media, and there is no shortage of other companies that are expanding and building screens. The phenomenon of progress occurs. The relevant media director from Quanjing Shuangbo revealed to the author that the supplier’s price increase on raw materials will have a certain impact on the company’s progress in building new screens.
From LED chip price increase to packaging, and finally to the downstream LED display, it looks like a top-down price increase movement, but from another perspective, this year Since the price increase of LED chips and packages, it is essentially related to the hotness of the display market. TrendForce research shows that the global LED display market will be affected by the epidemic in 2020, and the overall output value will only reach 5.53 billion U.S. dollars, a year-on-year decrease of 12.8%. Among them, the demand in Europe and the United States has declined the most. However, in 2021, as the rate of vaccine application in various countries increases and gradually unblocked, major commercial activities and sports events such as the European Football League and the Tokyo Olympics will also resume.The overall demand is gradually recovered. Superimposed LED display manufacturers have simultaneously increased product prices, and the market output value is expected to rise to 6.27 billion US dollars this year, an annual increase of 13.5%.
LED large screens have always occupied a pivotal position in the outdoor advertising market, and digital applications rely heavily on technology (the technology here is not a single LED display hardware, but naked-eye 3D , AR/VR and other visual communication technologies), naked-eye 3D, large and small screen interaction, VR and other technologies have enriched the communication innovation of outdoor LED media. For example, in 2020, the popularity of naked-eye 3D outdoor LED folding screens will undoubtedly bring more confidence to the re-emergence of outdoor LED displays.
partially naked eye 3D cases at home and abroad appear
course, the LED The collective price increase of enterprises in the display industry chain is different from the past. It will be a transitional movement from a price war to a quality war. As the cost of raw materials rises, it is understandable that major LED manufacturers choose to increase prices in order to ensure the quality of their products. Think about it from another angle. If the price of high-quality chips rises, LED manufacturers remain unmoved and choose other low-cost chips to replace products made by them. This is not only a deception to consumers, but also detrimental to the healthy development of the industry. Because of this, while prices are rising,Major companies pay more attention to the quality of their products.
At present, the price increase of some LED companies has become an established fact. Although companies will face certain pressure in the short term, it will help accelerate the integration of the industry in the long term. The scale effect appears, and then, the price of the entire industry will become more rational.
How long will the collective price increase of LED companies last? Will domestic related companies also usher in a second price increase? What do you think about this, please leave a message below to share your views with us!
Note: Part of the information in this article is quoted from the Semiconductor Investment Alliance (ID: gh_eb0fee55925b), small-pitch LED large screen (ID: xiaojianju_LED), if there is any infringement, please contact to delete!
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Author: Li Ang 丨 Vision: Jiang Kunjiang _span7 _span7 _spanspan _span7 _spanspan _span7 _span _span _span5 _span7
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