In the future, the terminal market may be difficult to have explosive growth demand, and will continue to be in a 'consolidation' stage. Screen enterprises must rely on their own product updates or application innovation to complete profit growth. LED display The era of large integration of industry has come. At the same time, there are three obvious development trends under the industrial background of this 'new normal'.
Trend 1: Segmentation of Brand Patterns
LED display The market segmentation pattern of the screen industry has already begun. Recently, there are some small and medium-sized screen enterprises that have outstanding performance in a certain segment, such as the rapid rise of the 'ice screen', which specializes in indoors. display The application of the export of Shigeo Guangxu, leading the transparent screen in the field of Oradea, and so on; In addition, several major leading screen companies in the industry to use the subsidiary to develop the segmentation category market layout is more and more clear: Liard Jin Lixiang took the lead in the high-end engineering field. The company is the Leidio of Zhouming Technology and is mainly responsible for the LED rental display and LED creative display product market. They have accumulated relatively solid brand foundation in their main subdivision areas. These all indicate a phenomenon: The brand pattern of various sub-categories in the industry is being formed, and the scale growth of strong brands is very strong.
The current industrial form is that there are a number of representative screen enterprises in various sub-categories, forming a group of representative industry brands. Some are grasping the barriers of industrial upgrading and successfully completing their own adjustments; some are choosing the right market segments. It has quickly become a well-known brand in this field, and some have successfully built the 'big car' of the leading screen enterprises, with strong backing; these screen enterprises have begun to take a big lead in terms of scale, development speed, or brand reputation, and often The brand can represent an extreme market segment. For example, when it comes to small-pitch TV, it is difficult to circumvent Liard, saying that transparent screen dance beauty can definitely think of counterfeit optoelectronics.
Therefore, the next small and medium-sized screen companies that want to make a difference must quickly obtain a favorable brand position in the subdivided categories and maximize the products. Otherwise, they will face areas that are familiar to their opponents and compete with them for homogeneity. The situation.
Trend 2: Intensified competition with the same segment product upgrade
It is worth noting that although the segmentation category has formed a strong brand, this does not mean that there is a lack of challengers. Because the same type of products in the industry, regardless of the type of hardware facilities or solutions are in multi-category and even diversified development. It is a small-pitch field, product upgrades, ultimate segmentation, and increased brand competition has become an irresistible trend.
On the one hand, with the intensification of industrial transformation and upgrading, end-users’ understanding of products and markets is becoming more and more mature, and prices are no longer the main factor in whether they think they are buying. Product performance has become the main criterion for market considerations. In the face of mid-to-high-end market, not only its quality and performance requirements, but also the individual needs are further released. This change in downstream market is also continuously stimulating the upgrade and optimization of products with small gaps between the upstream manufacturers and promoting them. Further subdivision of products, such as small-pitch advertising machines, small-pitch televisions, COB small-pitch, outdoor small-pitch, small-pitch rental, etc.
On the other hand, with the continuous improvement of the small-pitch technology, the definition of small pitches in the past two years is constantly being refreshed. Now P2.5 or below products have been used as conventional products, and the definition of small pitches in the industry has been reduced to below P2. This also marks the arrival of the watershed for the small-pitch industry, because the small pitch below P2 requires manufacturers to replace equipment to do it. This is very difficult for small and medium-sized companies with many tight capital chains and insufficient product R&D capabilities, because Only with a high level of R&D and design capability with a small gap, the requirement to replace production equipment at the same time also greatly raises the threshold for the entry of screen companies into small-pitch areas.
This means that many low-end production capacity in the small-pitch industry is likely to be eliminated. Even some manufacturers that have already replaced production equipment will face capacity pressure. How can there be insufficient capacity to support cost reduction? Subdivided product upgrades, the phenomenon of increased competition is not only in the small-pitch field, but also in the transparent screen field. The differentiated market is further subdivided. The fierce competition in accelerating product upgrades is also urging screen companies to rack their brains to become the ultimate product. Such as subdivision, this will become a major trend in the next industry.
Trend 3: Strong channels and multiple channels coexist
The channel competition in the LED display industry has never subsided, especially as the screen companies continue to expand the dealer system into major cities across the country, and even extend their reach to the county-level market. The channel market is becoming more and more popular. Time-listed screen enterprises have accelerated the layout of the channel market, and the channel market has become more lively. Liard, Zhouming, etc. Needless to say, they have strong strengths, and they have a strong brand influence when they return to the channel market. The cooperation between Bissen and Powerful Color has also made each other more competitive. In addition, in recent years, there have been some screen companies that specialize in segmentation channels. The situation of strong channels and multiple channels coexisting is becoming more and more clear.
It is worth noting that although many screen companies have become strong channels, the diversification of channels in the LED display industry is accelerating. The open policy of 'One Belt, One Road' has turned the screen enterprises to a broader overseas market. In the past few years, more and more screen enterprises have stepped out of the country to open up new channels and new markets. The strong alliance has added new ways for the screen enterprises to fully win the channel market in the region. In addition, many screen enterprises have matured or are developing. In the subdivision channels, such as Ai Biesen's hotel screen business, Huaxia Guangcai's leasing business unit, etc. In general, the diversification of industry channels is an opportunity and a challenge for powerful large enterprises. Speed up the layout of the channel, of course, for the brand screen enterprises that take the differentiated business route can also choose one or two channels for deep cultivation.
At present, from the perspective of industrial structure, China's LED display has gradually changed in recent years. The specialized division of labor in the industry is being formed: Manufacturers focusing on display production, market channel sellers, engineering installation after-sales service operators, etc. The emergence of specialized enterprises, clear division of labor, close cooperation, and the development of a win-win situation are taking shape. Specialized division of labor is conducive to doing fine, bigger, stronger, and has a positive significance for promoting the healthy development of the entire industry. At the same time, With the continuous optimization and development of the industry, the terminal products will be more diversified and refined, and the market will also be through several rounds of competition and elimination, eventually forming several leading screen enterprises, and many 'high-precision' enterprises control The overall situation, and the pattern of small and medium-sized enterprises competing for the remaining markets, will be a big leap-forward development for the entire LED display industry.
