Cross-border development and differentiated routes have become the new normal of the LED display industry

Publisher: Supplier of LED Display Time: 2019-12-27 08:44 Views: 2294

We all know that every industry follows a certain law of development, which we call the industry life cycle theory. The life cycle of the industry mainly includes four development stages, from the immature stage, the growth stage, to the mature stage and then to the recession stage. The same is true for the LED display industry. After years of development, the LED display industry has entered a new stage of development, and we can clearly feel that the industry has entered a highly mature stage of development. During this period, the market growth rate is not high, the demand growth rate is not high, the technology is mature, the characteristics of the industry and the competition in the industry are very clear and stable, the buyer's market is formed, the profitability of the industry is declining, new products, new technologies and new application fields Development is more difficult, and barriers to entry into the industry have become higher. In the baptism of this big wave, the stronger gets stronger, and the weak gradually withdraw from the market. So where should most of the screen companies that are still drifting in this predicament go?  



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   1. The law of the jungle: the industry is becoming increasingly polarized: in the development of each industry, the law of the jungle is an eternal theme. Looking back on the course of industry development over the years, China's LED display industry has experienced a severe baptism in the industry process. A group of industry pioneers have become martyrs, a group of powerful companies have reached the top of the pyramid through the capital market, and many LED display companies are still on the verge of survival. On the one hand, the cruel game of survival of the fittest in the process of industry acceleration; on the other hand, the feast of market demand growth and the opportunity to re-"grab the seat". Enterprises and the market will continue to stage a dual world of ice and fire.

 

  According to statistics, the overall global LED display market scale has continued to grow steadily since 2015. In 2019, the global LED display market reached 5.6 billion U.S. dollars, and the global LED display market is expected to reach 9.349 billion U.S. dollars in 2022. Although the market prospects are very impressive, it also means that the LED display market is more competitive. With the overall slow growth of the market, the LED display market is becoming saturated and gradually becoming the Red Sea market. The overall LED display market is growing. limited. First-line brand companies represented by listed companies have continued to exert their strength in production lines, channels and brand building in the past, and their advantages are very obvious. However, small and medium-sized enterprises have low financing and risk resistance capabilities, serious product homogeneity, and lack of competitiveness. Under the downward trend of the macro-economy, it will be difficult for some small and medium-sized enterprises to cross this threshold. With the filtering of small and medium-sized enterprises, industry resources will be further occupied by powerful large companies. In the case of large enterprises' urgent need to expand their business, in the future, mergers and acquisitions and cross-border will become significant ways for LED display companies to expand their scale and pursue profits. It continues to happen over a long period of time and becomes the norm.

 

2. Two obstacles: slow technological innovation and imperfect industry standards: In the process of rapid rise of the industry in the past, in addition to the advantages of my country's unique complete industrial chain and low production costs, the more important industries have low technical thresholds and are popular. LED display products are easy to be imitated, and even small innovations based on imitating are not complicated. After localized innovation, localized marketing and price reductions, it is easier to compete for market share. However, with the development and growth of the domestic LED display industry, whether in terms of market or technology, other foreign-funded enterprises no longer have the meaning of learning. Domestic display enterprises can only ask for the future from technological innovation by themselves, and even fall into the development. "No man's land", there are no learning and reference objects. Therefore, the space for technological innovation and iteration in the LED display industry is getting smaller and smaller, and the probability of revolutionary products is getting smaller and smaller.

 

   At the same time, the formulation of industry standards has been put on the agenda by more and more companies, associations and other organizations. As the saying goes, the concept of "third-rate companies selling products, second-rate companies creating brands, and first-rate companies establishing standards" has slowly taken root in the industry. For a long time, price wars in the industry have caused chaos in the industry. Because there is no uniform standard, some companies have broken the bottom line step by step in order to make huge profits, selling inferior products at ultra-low prices, further muddling the price war, and expanding the price war. Disadvantages have caused product prices to drop repeatedly, hurting the healthy development of the industry. The lack of a unified industry standard is one of the important reasons that hinder the continued development of the LED display industry.

 

   3. Cross-border development and differentiated routes have become the norm in the industry: if they don’t erupt in silence, they will perish in silence. Of course, the screen companies that have struggled in the LED display industry will not easily withdraw or give up. If companies want to get better and greater development space, cross-border integration is a very good choice. Cross-border development is nothing new in the LED display industry. In addition to the cross-border education industry, the development of the cross-border sports industry is also commonplace. Things. Of course, from the LED display field to another completely unfamiliar field, the realization of a series of processes from product development to paving the way to building a reputation, the risks in it are often unexpected, and various situations may occur. This requires screen companies to have accurate judgment and the ability to deal with various situations.

 

   In addition, in addition to cross-border development, the differentiated route is still the mainstream route chosen by most screen companies. How to be unique among the "people in the crowd" and become an industry leader to attract the attention of the public has become an unstoppable "fashion trend" for LED display companies for a while. Catering to the consumer needs of end-market customers, and creating segmented and differentiated product positioning for customers from different fields and classes has become a breakthrough for many manufacturers. In fact, in the final analysis, this is also a form of customized LED display. The difference is that customized products are further standardized and subdivided, and integrated and subdivided from a more professional and industry level, which can not only improve customers Satisfaction and loyalty can also greatly improve the degree of differentiation of products and brands, and bring a series of competitive advantages to enterprises. However, differentiated product positioning requires higher requirements for screen companies’ product R&D capabilities, process manufacturing levels, after-sales service, market development strategies, and corporate management. In particular, some high-end display projects require more professionalism. Therefore, screen companies have only continuous Only by improving one's own strengths can we better catch up with the development trend and gain a firm foothold in the big wave of industry integration.

 

   In fact, no matter how mature the industry is, opportunities will always exist. Just as in the era when Microsoft system dominates the world, Apple can still rely on technology and innovation to break through. So, when the LED display is still in the mix, what reason do we have to complain about "time is not with me"? Although the current challenges exist, there is no shortage of opportunities. LED display companies can only seize the opportunities and continue to innovate. Only by improving the level of customer service can you develop and strengthen yourself!