LED display industry: The greater the downward pressure, the more emphasis must be placed on corporate value

Looking back on 2015 in the LED display industry, the large LED screens provided by Leyard helped support the military parade celebrating the 70th anniversary of the victory of the Anti-Japanese War, witnessing China’s fruitful achievements in the military field; the Absen A1688 advertising screen was officially unveiled in Times Square, New York, USA, indicating that the technical level of China’s LED display products has reached the forefront of the world, and that the international influence of China’s LED display brands has taken another big step forward.

This year, the haze of the outdoor LED display fire in Sanmenxia has not yet dissipated. On the other side, the LED rental screen stage for Jolin Tsai's concert collapsed again; the stock market shock has left people with lingering fears, and various LED listed companies have competed to suspend trading; "bankruptcy and runaway" and "broken capital chain" have become hot words in the industry.

The growth rate of the LED display industry has slowed down and market demand has cooled. In the 2015 financial disclosures of listed companies such as Leyard, Lehman, Dongshan Precision, Absen, Alto Electronics, Nationstar Optoelectronics, Huacan Optoelectronics, and Mulinsen, the corporate performance also showed mixed positives and negatives. Compared with last year, the fluctuations were larger.

Facing 2016, some people say that LED display companies will face more crises and difficulties. The more under such a situation, the more LED display companies must emphasize the value of the company and produce products with better quality, higher quality, and more recognized by the market. Only in this way can companies: no matter the wind and waves, it is better than strolling in the garden.

Brand

With the advantages of high brightness, strong visual impact, wide viewing angle range and excellent color reproduction ability, outdoor LED displays have shown rapid development in recent years, rapidly "conquering cities and territories" and spreading all over the streets and alleys of the city. As an outdoor media with great development prospects, the unique communication value created by LED display screens is beyond the reach of other traditional outdoor media. It has now become the business card of the city in the new era, and serves as a carrier to showcase the city's commercial vitality and endorse the city's modern spirit. Relevant statistics show that by 2017, China's outdoor advertising market is expected to reach 160 billion yuan, and its potential remains the same.

Everyone in the world is interested in profit, and the broad market growth prospects will naturally attract many companies to seize the opportunity. In the LED display market in 2015, Lianjian Optoelectronics spent nearly 2 billion to acquire four advertising media companies, Shenzhen Lima, Huahan Culture, Litang Marketing and Ocean Media, covering advertising search, operation, operation, placement, etc., and is committed to building a comprehensive advertising media layout; Ledman Optoelectronics also announced in December 2015 that it planned to issue shares and pay cash. The main business of the target company involved in this transaction is in the field of advertising and media. Coincidentally, China Guangcai also announced in early January 2016 that it would enter the media field. It has established Huaxian Culture Media Co., Ltd. to interact with major media companies across the country with funds and resources with a new generation of products, and plans to build a network of urban landmark advertising with the widest coverage in the country.

The market is a battlefield, and the law of retreat will never change. For enterprises, in order to break through in the fiercely competitive market, they must create stronger brand value. For LED display companies, brand value is not only reflected in product quality, but also includes many aspects such as pre-sales, in-sales, and after-sales service capabilities to customers.

Quality

Looking back at the "blowout" development of LED display screens in the past ten years or so, it can be seen that my country's LED display screen industry has currently experienced a serious structural surplus, that is, a surplus of mid- to low-end homogeneous products. The weak market demand and overcapacity in the industry have made the price war in the LED display industry very fierce.

For large enterprises with financial and scale strength, price reduction is an effective way to occupy the market, but for most small and medium-sized enterprises, they are forced to participate. Frequent price wars not only severely compress the profit margins of these LED manufacturers, but will also further affect product quality. In order to reduce costs, some companies do not hesitate to sacrifice the quality of products and services, resulting in a large number of inferior products flooding the market. In recent years, "fire doors" caused by problems with the quality of LED displays have occurred frequently, posing great dangers to the safety of personnel and the economy of customers.

For customers, the quality of the LED display is the most important. For industry companies, each company also has responsibilities and obligations to maintain industry competition rules and provide customers with low-price, high-quality products while ensuring product quality.

Creativity

With the continuous development of LED displays outdoors, problems such as light pollution and disharmony between LED displays and the surrounding environment are becoming increasingly prominent. How to deal with the contradictions and conflicts between LED display application and urban development, so that we can find a new balance between the two and use creativity in products should be the only choice. Let the LED display screen better integrate into the environment. The ideal effect is to make the LED display screen a unique scenery in the city and maximize its value.

In the field of outdoor LED displays, many companies in the industry have achieved perfect connection between creative screens and surrounding buildings, making LED displays become new landmarks and new business cards of the city. "Asia's No. 1 Outdoor LED Display" project, "Xinjiang Software Park Chuangzhi Building Thousand Square Meters LED Display" project, etc. Indoors, LED display companies actually need to do more creative design, how to design the shape and appearance of the LED display to integrate it with the surrounding environment or architecture.

In the face of the new year, it cannot be said that there are no difficulties in the development of the industry. However, the more difficult the period, the more companies must have a clear direction of development, plan for future development, make timely adjustments, change thinking, and seek development based on value.