How LED display companies welcome 2016

2015 is an extraordinary year for everyone. In this year, we have experienced together, commemorating the victory of the Anti-Japanese War and coping with the ups and downs of the stock market; we have witnessed together that the two sides of the Taiwan Strait have turned a new page and the end of the one-child policy; we have together felt the hardships of Tu Youyou’s exploration and the sorrow of the Tianjin Port accident; we have cheered together, the deepening of the anti-corruption struggle and the acceleration of military reform; we have together looked forward to the approaching of the Beijing Winter Olympics and the arrival of the "13th Five-Year Plan".

Returning to the LED display industry, in 2015, Leyard acquired Jinlixiang and Lifeng for 890 million, sounding the clarion call for mergers and acquisitions in the LED industry; Radian's star product "Black Onyx" (High Density LED display screen) won the German IF Gold Award in one fell swoop, once again stirring the nerves of the entire international industrial product design community; Absen's star product A1688 advertising screen officially debuted at No. 1500 Broadway, Times Square, New York, USA, with unlimited glory. We should see that these hard-won achievements of LED display companies have been hard-won amid the sluggish global economic recovery and increasing downward pressure on the domestic economy. Aim high and keep high. How should LED display companies welcome 2016?

Strengthening brand building to help enterprises “go global”

In recent years, the LED display industry has developed very rapidly and has become the second largest segment in the LED industry after LED lighting. According to statistics, in 2014, the global LED display (including display screens and other backlight products) market size reached US$9.6 billion. According to predictions, the global market demand for LED displays will continue to grow rapidly in the coming period, with an average annual growth rate of more than 20% in the next five years. It is expected that by 2020, the global LED display market will reach US$30 billion. At the same time, on the supply side of the global LED display market, China is the most important manufacturing base. In 2014, the export volume of LED displays (including displays and other backlight products) in Guangdong Province alone reached 14.433 billion yuan, a year-on-year increase of 30.58%.

Against the backdrop of continued growth in the global LED display market, China's display industry still has considerable room for development in the future. The market has broad prospects, but how should companies proceed?

According to relevant data, in 2014, China’s exports of LED displays and related backlight products to the United States, Germany, and Russia accounted for 39.4%, 36.2%, and 46.7% of the imports of such products in the above countries respectively. In terms of proportion, Chinese companies also have LED displays in the above countries. However, judging from the brand share of LED displays in these countries, there are no Chinese companies among the top ten brands. This shows that although Chinese companies sell their products to countries around the world, they seriously lack influential brand competition companies in the international market, and there are still a large number of OEM sales and OEM situations. "In today's international LED display market, it is difficult to see Chinese brands. Most Chinese LED companies are doing OEM for international brands." These words of Lin Mingfeng, chairman of Shenzhen Unilumin Technology Co., Ltd., verify the current status of Chinese LED display companies in the international market.

Brand is the soft power of an enterprise and its core competitiveness. Judging from the LED display screen groups that have closed down in recent years, most of the companies that have withdrawn are companies whose products lack features and brand characteristics are not obvious. A brand is equivalent to the business card of a company or product, and has immeasurable potential value. If a company wants to go long term, it must continue to take the road of branding, make good products, provide good services, and establish a brand so that it can become the competitiveness of the company for sustainable development.

Innovative products seek development and teamwork for the future

When the industry develops to a certain stage, once mainstream products are formed, homogeneous products will become increasingly prominent, causing the more mature conventional product market to enter "red ocean" competition, with fierce price competition, while innovative products will become new profit growth points. If we don’t advance, we will retreat. Whether it’s technology, products, markets, or business models, we need to constantly explore and innovate.

Innovative products should be based on the market. As people's living standards get higher and higher, they pay more and more attention to both product quality and living environment. In terms of product innovation, LED display companies can customize products based on the on-site installation environment to achieve the effect of integrating LED displays with buildings and landscapes, allowing technology and art and culture to complement each other, develop harmoniously, and create the best visual effects.

As the LED display industry has developed over the years, everyone in the industry will feel the intensity of market competition. Fierce market competition will inevitably force LED display companies to find new profit points. Undoubtedly, resource integration, mergers and acquisitions, grouping for warmth, etc. in the industry today have become hot words that everyone is paying attention to.

Focusing on the development direction of LED enterprises, issues such as Internet +, Made in China 2025, transformation and upgrading are all placed in front of us. Facing the market, the R&D and production of many new products cannot be accomplished by one industry or one company alone. Guan Baiyu, secretary-general of the China LED Industry and Application Alliance, hopes that in the future development strategy of the LED display industry, the integration of multiple technologies and the gathering of multiple resources should become the focus we need to consider. On this basis, companies should also carry out in-depth cooperation at the brand, marketing, channel and other levels based on resource integration to promote industrial upgrading and achieve win-win development.

The next few years will bring rapid development to the global LED display industry, and are also key years for the development and growth of domestic LED companies. In the context of rapid changes in the entire industry, a large number of companies will retreat if they do not advance. For LED display companies, they must have keen market judgment and decisive strategic execution, accelerate corporate transformation and upgrading, and win survival with a hundredfold confidence.

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