“Revenge consumption” is coming! Are LED display companies ready?

Date: 2020-04-18
Clicks: 367

What is the first thing you have to do after the epidemic? Some people say they want to eat, drink, travel... and the actual situation is exactly the same. Many restaurants have ushered in a crowd of customers as soon as they resumed business. We call this phenomenon "revenge consumption" or "compensatory consumption". In terms of image, the current economic situation is completely equivalent to a compressed spring. In the "post-epidemic era", suppressed consumer demand will be released beyond normal conditions. So, can the "retaliatory consumption" appearing in these commercial consumption fields be mapped to the level of industrial manufacturing? In response to this possible "revenge consumption", how should companies prepare?

Under the epidemic, demand is "delayed"
At present, the challenges of the epidemic to the LED industry mainly include the following aspects: First, the supply and demand balance of the upstream and downstream of the industrial chain is impaired 47.73% of LED display industry chain enterprises said that the supply of materials could not keep up. The supply is tight, and some suppliers can still supply normally, but the price has already increased to a certain extent. In the short term, all LED-related exhibitions will be postponed, the promotion of new products, new technologies, and new markets will also be postponed, and the bidding and procurement information will be delayed accordingly ... but "delay" is not "cancellation", just like commercial Like the bottom-out rebound phenomenon in consumption, the LED display industry will have a large demand for rebound after the suppression of the industrial chain, and the output value of the entire industrial chain has entered a state of rapid growth.

"Revenge consumption" will be strongly promoted
At present, the outside world agrees that China's huge volume has a greater influence on the global supply chain than in 2003, and its role on the world economic stage is also greater, which means that after the impact of the epidemic There may be a V-shaped or U-shaped rebound in the Chinese economy. For the manufacturing industry of this type of LED display, rebound and recovery is not an easy task. At present, most of the enterprises that resume work are manufacturing enterprises, agents. Many companies such as engineering companies and system integrators have not resumed work, the market procurement demand has not been released, and the terminal market is still suppressed. In addition, the construction, new retail, and entertainment industries that large engineering projects rely on are all labor-intensive and population-intensive industries. The government's approval of the resumption of the labor union is relatively delayed, and the demand for LED display-related industries will also be relatively delayed. Once all industries and industries related to LED display have fully recovered, it will also drive the LED display to start a new wave of growth.

Enterprises should prepare for the outbreak of market concentration
At present, the LED display industry is generally rational to start construction, but to a certain extent, it is rendered by the overwhelming grief and public opinion, causing a certain amount of panic. In fact, the more this time, the more rational we must be in the face of natural and man-made disasters. In the face of the current market situation, the most important thing for an enterprise is to control its cash flow and gradually resume production in a planned manner. How many production lines are opened should be combined with the market recovery and the actual situation of the enterprise itself. Do not compare or blindly comprehensively organize production. Second, we must produce in a planned manner and prepare a certain product inventory. When the market demand erupts from April to May, we can ensure the demand for centralized delivery of engineering and dealers, and ensure smooth sales. Try to grab the lost time as much as possible. At the same time, investment in research and development of new products and technologies cannot be stagnated.

No winter will not pass, no spring will not come. All in all, the epidemic situation is a double-edged sword, which is testing the national cohesion and the ability of enterprises to self-regulate, and exercise high-quality enterprise soft power.