Since the outbreak of the epidemic in 2019, the display company has started a nightmare for three years. Chip shortages, the impact of city closures, shortage of basic workers, trade wars, and all unstable factors have spread to every angle of the economy at an extremely fast speed. LED display products are no exception. Foreign trade has shrunk sharply, the European economy has plummeted, causing demand to drop and projects to be delayed. Demand for basic goods has increased, and the demand for non-essential products has an obvious downward trend.

Under such circumstances, Chinese LED display companies began to quickly adjust their strategies, control costs, cancel inventories, ensure cash flow, stop sinosure methods, lay off employees to protect the main survive basic and there are endless ways to break the wrists of strong men. "We can no longer sell whatever we want. " Recalls an executive of a listed company.

Yes, the epidemic has exposed some companies that have no strength. There are only less than 10 main listed display companies in China, Leyard, Unilumin, Absen, Aoto, Liantronics, plus Yaham. (under Han's Group), Desay (under Desay Intelligence), QS-TECH (under CVTE), they formed a new China Display Export TOP Company circle. And other companies that have not yet been listed, such as Dicolor, Gloshine, Lightlink, Lightking, etc., have begun to collapse or have collapsed without any accident. The LED display market has an annual volume of hundreds of billions of dollars. After entering the new century, it has become a favorite industry for everyone. After 20 years of precipitation in the market structure, it is now more and more prominent. The pattern of polarization, some of which are the above the first group is dominated by municipal companies, and the other part is the peripheral supply chain dominated by small and medium-sized companies or foreign trade companies. The unstable world situation has completely turned high-quality customer resources into a bond between strong and powerful alliances, abandoned the trade attitude of price war, and finally walked out of the price-oriented market structure. Customers and the supply chain are beginning to realize that, in the current situation, it is not the price that can be determined, and the factors of quality, delivery speed, and product design are beginning to become important.

Especially the speed of delivery, which greatly enhances the competitiveness of powerful companies, because in the time of economic weakness, companies that have spare energy for product development, product preparation and product delivery on time have become the only choice for potential customers. Just like in the field of logistics, when multinational companies can not deliver, DHL and UPS can still maintain operations with strong strength and snatch the market at several times of the price. The same is true for the display market. For companies with branches, warehouses or customer channels in Europe and the United States, product stock has become very popular. Basically, the goods will be snapped up as soon as they arrive. This new model has made big companies try over again and again.

Inventory mode, not was created suddenly during the epidemic, it would be carried out when the product is selling well. However, due to the impact of the epidemic, the instability of delivery has increased, which has led to the factor of rapid delivery in order to get the project, which has become a more important factor prior to price. With the abandonment of strict epidemic control policies in European and American countries, projects during the epidemic suddenly entered the implementation stage, and many market activities and business projects recovered at once. This explosive demand growth has led to the rise of performance of major companies strongly in the first quarter,

However, as far as we know, there are not many companies in Europe and America that have inventory arrangements, mainly using the following methods for product delivery and management:

1. Own inventory.

This type of company is mainly based on several major listed companies with European branches, giving full play to their financial, technical and management advantages, and maximizing support for customers to obtain effective supply chain guarantees

2. Channel Inventory.

It mainly means that domestic suppliers place a small amount of product stock in the customer's warehouse with a very low down payment or zero down payment, and use regional business management to achieve the purpose of quickly meeting customer needs in a small amount.

3. Main material inventory.

Due to the huge financial pressure of not being able to support the finished product inventory, some companies often operate by some other means, preparing the stock cabinet or stock module separately, and then the Chinese headquarters prepares other parts to drastically reduce the cost and product weight. If the customer needs to purchase, it can be sent separately in modules or cabinets, then delivered by air as soon as possible. This requires strict requirements for product types and configurations, and is also subject to the logistics prices at that time, so it is for a well-managed company or a small volume companies, this method does not have the operability of large inventory.

In the current market, price is no longer the first requirement, because the project is there, and whoever has the goods has the final decision power. As for the price, the customer can accept it, it doesn't matter how high or low, the products and services are delivered to the customer at the first importance.

After the epidemic, many companies have continuously summed up a set of inventory management methods for mature markets. No matter whether there is still a high demand for inventory in the future, this serious of thinking has very high practical significance for us. At the same time, it suppressed the thinking of price first, quality second, and service third. For the first time, ideas of how to proceed delivery with high quality really come to a very important position.

For GO LED SERVICE, we are a service port and a technology platform. We are willing to see market recovery and demand growth. Only because the holdings and increments increase at the same time, we will have greater opportunities to provide market-oriented services. The cake is made bigger and bigger by all the companies in the industry. Upstream packaging, midstream parts manufacturing and downstream assembly are constantly being optimized and upgraded, and the fittest will be selected. We can see that soon in the future of more suitable and qualified product. At the same time, high-quality customers are also screened out, and the demand for services will also grow explosively, which is very beneficial to us. I hope this future will come sooner.