At present, there are more than 1.6 billion smartphone users worldwide, and this 1.6 billion is precisely the main body and core of society. Mobile Internet has truly become an integral part of people's lives and work. It has subverted the entire social life, including corporate business models. Almost everything is To be transparent, before the popularity of the mobile Internet, if the customer has a not very good customer experience, it may only be considered unlucky and nothing more, but now a microblogging customer can make the world in 2 or 3 seconds. We all know that the promise of a company, a product, or a service has not been honored. Customers get the functionality of a product, and the price is anywhere, anytime.
(1) Transparency (non-price war)
In the past decade or so, LED display screens have grown and sold in a closed environment due to their non-standard products and their engineering nature. Caused a series of problems such as chaotic product types, chaotic quality, and chaotic prices. A market of less than 30 billion houses more than 2,000 companies and the profit margin is relatively large. Orders are mainly based on the salesman's public relations capabilities and operational capabilities. However, the advent of the mobile Internet era has completely changed the closed mode of the LED display industry. Now customers need LED display, anytime, anywhere, a few seconds to find the company, products, prices, etc., everything is transparent.
1) The transparency of the company’s overall strength and the asymmetry of previous information have ensured a LED display industry with less than 30 billion RMB, and more than 2,000 companies are profitable. The customer has no access to the information provided by the LED display supplier. The main factor affecting customer decision-making is the salesperson who communicates with them, and the contract is handled in the push-pull exchange. In the era of mobile internet, the overall strength of the display company's scale, case, sales, and quality brand is completely transparent. The customer has enough information to verify and verify the real situation. At this time, the largest companies in the LED display industry will first become the targets choosed by customers.
2) The price transparency: price transparency (non-price war) into the mobile Internet era the biggest impact on the LED display industry, in a model of chaotic LED display market, the real mainstream models are only a few, outdoor Mainly P16 and P10. The main indoor room is P6, P4. Before the LED display price was not transparent, mainly because the manufacturer did not disclose the price, so it was difficult to find the quotation on the website. Now, with the expansion of the scale of some enterprises in the industry, it is possible to realize standardized mass production and open and transparent prices are possible. Once the LED display price is transparent, the sales model of the entire industry will be completely subverted.
3) Transparency of corporate reputation: A series of events such as Guo Meimei, Director of Smile, Fang Aiai, and Lei Zhengfu made us experience the tremendous social impact of information transparency in the mobile Internet era. The LED display on the Hong Kong Harbour Grand Hotel caught fire, the stage screen of the Yangzhou Stadium collapsed, and the Beijing leasing customer group returned the goods. After the incident spread throughout the entire LED display industry, the mobile Internet era undoubtedly showed the enterprise “naked” to people. before. Big companies are even on thin ice, fearing that "one name was destroyed by one name (dan)."
(II) Change
In the face of all the transparency of the Internet era, LED display industry is a few happy families. Engineering and trade are undoubtedly the catastrophe. Small and medium-sized companies are also in turmoil. Even big companies in the industry have to face the disadvantages of a serious decline in profit after price transparency. Therefore, the resistance to price transparency will become a rare “tacit understanding” in the industry within a short period of time. However, the trend of price transparency is overwhelming. Under a brand-new business model, only when companies make changes will they not die under the wheels of the drastic changes in the market.
Change not only has capital but also costs, LED display industry more than 2,000, there is no shortage of super-strong people and well-funded enterprises. However, in the face of the “all-transparent” business environment, perhaps no one company can face it. There are problems in the production scale, cost control, product quality, and engineering services of several listed companies, far from thinking about the consequences of “all transparency”.
No enterprise in the entire LED display industry likes "all transparency", but "all transparency" is inevitable. It is the evolution direction of the industry. I think every company wants to overtake the car in the corner. This is indeed the biggest change in the history of the LED display industry. The transparency of comprehensive strength and word of mouth is drawing to a close. Only the transparency of the price has just begun. The strength of passing corners is the key.
(3) Influence
In the process of gradual realization of “price transparency”, the original LED display industry sales model will be completely subverted: 1) The problem of information asymmetry is solved, and customers can more conveniently and objectively find and deal with the appropriate LED display companies.
2) The transaction costs are reduced. Customers do not have to spend a lot of time to visit several factories and conduct rounds of negotiations and prices.
3) The product configuration is unified. The supplier must design a product configuration with guaranteed quality for price transparency. The product quality is more assured.
4) It is beneficial to the LED display industry to focus on the scale development. After the price is transparent after the standard is unified, the market share of some companies will expand rapidly. Finally, a large internationally competitive enterprise will form. The LED display industry will soon be more than 2,000 The home is reduced to a few.
The process of “all transparency” is accompanied by pain. Firms with strong comprehensive strength such as price advantage and capacity advantage, well-funded management, etc. will accelerate their expansion and gradually invade the market of small and medium-sized enterprises.