“Crisis” and “opportunities” coexist in 2015, and the LED industry is facing an inflection point with “two major events”

For the Chinese, we have caught up with the best of times. When all the dividends from the last round of reform and opening up were released, everything that should be taken away was taken away. And a new era is coming! With "Internet +" as a tool and mass entrepreneurship as a form, a new economic structure is being shaped! And people with new knowledge, new concepts, and new thinking will officially enter the stage of history! The LED display industry also needs to adapt to the development of current events, learn new knowledge, absorb new ideas, and use thinking to open up a broader market! This year will be a critical year for industry competition.

First of all, China has joined the World Trade Organization (WTO) in 2001. At that time, China should integrate with the world and open its door to the world. However, our country’s national conditions were not suitable at that time, and computers were not widely available. Chinese leaders We applied to the WTO for a 15-year protection period and used these 15 years to adjust China's economic structure. The 15-year protection period will be in July of this year (2015 AD). The protection period has expired and the country must be opened. This is an iron fact and there is no doubt about it.

Perhaps many LED people have not realized the significance and impact of this matter. They will ask, does the opening of the country have anything to do with us? In fact, it can even be related to the survival of every Chinese person. Of course, it cannot be used for the LED industry because after the country opens, at least two things will happen:

The first thing is to allow foreign-funded enterprises to enter all industries in China, including finance, securities, transportation, steel plants, etc. controlled by our country. Foreign investment is allowed to enter. In the future, the state will not be allowed to participate in bidding projects, only individual consortiums are allowed to participate; With abundant capital and advanced technology, under such a situation, my country's LED display market will be further divided, which will bring greater challenges to my country's LED display companies. If my country's LED display companies do not pay attention to building their own strength, they will be washed away by such a torrent. Of course, this is also an opportunity for my country's LED display companies, because under such pressure, LED display companies can only continue to innovate and develop, improve their own technical level, and win the initiative in the market.

The second thing is more related to our survival. The customs tariff reduction or exemption may be zero. That is to say, starting from July this year (2015 AD), all imported and exported goods will be exempted from customs tariffs.

Because our country’s customs tariffs were very high in the past, all imported goods will be subject to customs tariffs, with the lowest being 100% and the highest being 420%, which means that goods worth 100 yuan enter China. Starting from July this year, products from all over the world will gradually enter China, and LED display products will be no exception.

Not only that, all imported and exported goods also have agency fees, that is, the fees of agents, such as first-level agents and second-level agents, before they can enter the hands of dealers. Dealers plus their own store fees, labor costs, decoration fees, and finally a markup fee, so its price is very, very high, and ordinary people generally cannot afford it.

Starting from July this year, goods from all over the world will gradually enter China, exempt from all fees, listed on the Chinese market at very low prices, and will directly enter the families of ordinary people. It will have a great impact on all industries in China!

First of all, for LED display companies, the customs tariff reduction or exemption may be zero. Then foreign LED display products entering the Chinese market will be sold at a lower price than currently. With its own brand awareness, this will bring a change to my country's LED display market. In the second major shock, companies without technical strength will fall into endless price wars or even perish. How to avoid being eliminated in the competition, innovative and high-quality products are the key to support. In addition, my country's LED display companies also need to pay more attention to brand building and create a world-renowned LED display brand.