How can LED display small and medium-sized enterprises break the game and make profits to seize the industry development opportunities

Publisher: Supplier of LED Display Time: 2019-02-27 15:14 Views: 2002

         2018 was a year of disruption. In this year, great changes have taken place in the macroeconomic and international situation, as well as the subdivided industries. Among them, the performance of the LED display industry is particularly outstanding, the overall economy is down, the Sino-US trade war, the industrial structure changes... After a whole year, the profitability of the LED display industry, which was originally "extraordinarily profitable" and "savage growth", has been dismal, and many small and medium-sized enterprises in the industry Deep in the quagmire of the "loss tide", I can only look at my own financial statements with misery.

 


 
  As we all know, the LED display industry is a grassroots industry with low barriers to entry. More than 90% of the companies in the industry are small and medium-sized enterprises. These small and medium-sized enterprises provide half of the industry's production capacity and output value, but they are also the direct manifestations of the consequences of market changes, and they resist risks. Ability is worrying. Through the turbulent 2018, at the beginning of this year, how should small and medium-sized enterprises in the LED display industry break the game and make profits and seize the opportunity for industry development?

 

  1. Exploit strengths and avoid weaknesses to seek differentiated advantages of the enterprise: It is undeniable that the market has always been the survival of the fittest, and in the face of market crises, I believe that no one will wait to die. As the price competition among peers intensifies, the phenomenon of product homogeneity in the industry has become more common. Small and medium-sized LED display companies blindly pursue price and profit margins, and do not pay attention to technology investment and research and development, resulting in low product market competitiveness and continued corporate marketing. Going down...Under the background of overcapacity, homogenization of products, and fierce price wars, LED display small and medium-sized enterprises must know how to use their strengths and avoid weaknesses, and adjust their business directions based on market demand.

 

   1. For small and medium-sized LED display companies, the most important thing is to have a correct and sufficient understanding of the company itself, so as to find a precise position for the future development of the company. For example, in terms of technological innovation strength, although small and medium-sized enterprises cannot compete with large enterprises, small enterprises have their own flexibility, because no matter how large a company, it is impossible to have everything and everything in its products. As long as small and medium-sized enterprises give full play to their own Advantages, a certain degree of sensitivity to the market, can capture business opportunities from the market. Remember, small and medium-sized LED display companies must not blindly pursue the mainstream of the market and use their weaknesses to compete with other companies.

 

  2, LED display small and medium-sized enterprises must have forward-looking thinking, and strategize before they can survive all battles, avoid the trap of "big and complete", avoid blindly pursuing big and complete biased ideas, and accumulate strength to support products that have outstanding advantages and play a key role. Only by firmly controlling this advantageous characteristic product and cultivating one's own difference and advantage can we continuously increase our competitive advantage in the fierce market competition. In addition, small and medium-sized LED display companies can also form strategic partners with companies that can form "complementary advantages" in terms of product, channel or technological innovation capabilities, and work together for a win-win situation. After all, team battles are more competitive than single-handedly.

 


 
  2. Take the "One Belt One Road" Dongfeng to open up overseas markets: As the saying goes, "channels are king". With the domestic market becoming saturated, many small and medium-sized LED display companies have begun to worry about orders and profits. They need to continue to worry about orders and profits. To expand into new markets. At present, many small and medium-sized enterprises have set their sights on foreign markets. However, it should be noted that overseas markets cannot be blindly expanded. They must be based on their own conditions, and they must deploy operations in a targeted and purposeful manner. 

 

   Overseas markets are mainly divided into Europe, North America, the Middle East and emerging markets. For the European market, the demand for display screens from large local brands has increased significantly, while small and medium-sized brands face price competition from Chinese manufacturers and their ability to obtain orders is limited. The Southeast Asian market is also becoming more mature as the political situation continues to stabilize. Although competition in overseas markets has begun to intensify, as the “Belt and Road” construction is gradually spreading from point to point, a network of financial cooperation is being formed, and there is strong support for the internationalization of the renminbi. More importantly, many areas along the "Belt and Road" are developing countries and are in the development stage. All aspects of construction are in progress. For domestic LED display small and medium enterprises, it is undoubtedly the best for them to cut into. market.

 

3. The promulgation of national policies to facilitate the high-quality development of small and medium-sized enterprises: From the perspective of the domestic environment, my country's small and medium-sized enterprises account for more than 90% of the main market, providing more than 80% of the country’s jobs, more than 70% of invention patents, and 60 More than% of GDP, more than 50% of taxation, and the main body of foreign exchange earning through exports. Therefore, the state has also promulgated a series of policies to promote the development of small and medium-sized enterprises in the manufacturing industry.

 

For example, in the key tasks of 2019 proposed by the Central Economic Work Conference, "promoting the high-quality development of the manufacturing industry" was ranked first. Promoting the high-quality development of the manufacturing industry is an urgent need for the high-quality development of the Chinese economy and the enhancement of international competitiveness; in 1 A batch of inclusive tax reduction measures were introduced at the State Council executive meeting just held on 9th. These tax reduction policies can be traced back to January 1 this year, and the implementation period is tentatively set for 3 years. It is estimated that the burden of small and micro enterprises can be reduced by about 200 billion each year. The State Council’s leading group for promoting the development of small and medium-sized enterprises is set up in the Ministry of Industry and Information Technology. As the head of the working group, Miao Wei expressed that he would urge local governments to implement these policies in place. *The promulgation of the policy has appropriately reduced operating costs for small and medium-sized LED display companies, and helped the LED display industry to move toward a sophisticated direction.

 

   Someone said that “2018 was the worst year in the past ten years, but it is likely to be the best year in the next ten years”. We do not speculate about the difficulties and bitterness of LED display small and medium-sized enterprises this year, but we expect that after the rebirth of the nirvana, LED display small and medium-sized enterprises will have a bright future on the road of development.