LED screen companies, where is your "A4 waist"

Recently, after holding a pen under the breast, placing a coin on the collarbone, and touching the navel with a backhand, the A4 waist has become popular on the Internet as the new generation of goddess standard. In just a few days, it has received more than 92.2 million views. Many netizens also used this topic to post about their small waists. For a time, many platforms such as Weibo and WeChat were dominated by A4. As a 9-to-5 office worker, the editor can only touch my belly silently and secretly lament, "If you don't lose weight in March, you will be sad in April."

Looking back at the LED industry, many companies, like the editor, have become bloated due to blind expansion of production or too long product lines, so that they are struggling, and some even end up going bankrupt.

The collapse of Zhongxiang Innovation and Light Energy Technology in late July 2015 is a typical example worthy of our deep thought. It is understood that the direct reason for the collapse of Zhongxiang Innovation and Light Energy Technology was almost all because they blindly expanded production and accepted orders without considering their own funds, technology, scale, experience, etc., which led to the break in the capital chain and the collapse.

Therefore, what we are going to discuss today is how to make LED companies slim down into a "lightning" before the arrival of this summer.

Industry insiders believe that for small and medium-sized enterprises, especially manufacturing enterprises, once they want to expand their scale, operational investment will inevitably increase accordingly. If investment increases and the market shrinks, it will bring great risks. Therefore, in an industry context of overcapacity, product homogeneity, and increasingly fierce price wars, small and medium-sized enterprises must have forward-looking thinking and strategizing to survive in every battle and avoid blind expansion. Secondly, we need to delve deeply into subdivided areas and make our products more refined and specialized. When a company encounters problems, it must “downsize” in a timely manner.

As the saying goes, "A small boat can turn around." The editor believes that in the current LED industry, mergers and acquisitions, integration, reshuffling, and cross-border integration have continued, and advantageous resources have been further concentrated towards industry leaders. The industry has gradually shown a situation of "the big one is always big". Diversification is like addition, which is better than reducing risks; while concentration is about subtraction, and the most valuable thing is intensive cultivation. For small and medium-sized enterprises that do not have advantages in scale, technology, or capital, careful work is the only way to turn the "red ocean" into a "deep ocean."

Therefore, small and medium-sized enterprises must first avoid the trap of "big and comprehensive", avoid the biased idea of blindly pursuing large and comprehensive, and gather strength to support products that have outstanding advantages and play a key role. As long as we firmly grasp this advantageous characteristic product, we can grasp the core competitive advantage of the entire industry chain. For other related products in the industry chain, we can integrate external advantageous resources through cooperation and turn enemies everywhere into strong cooperation, so that we can ultimately achieve a win-win situation in the industry.

Secondly, find your own positioning and focus on market segments. Enterprises must understand what they can and cannot do, give themselves a clear positioning, abandon those unrealistic ideas that seek perfection, develop rationally, concentrate limited resources and energy, stick to a certain market segment, and do their best to become a leader in this field.

In addition, some companies that have already achieved scale, under the current economic situation that is not optimistic, can cut down unprofitable businesses and "subtract" to reduce the pressure and burden of the company and seek survival. This is also a wise approach.

Obviously, there are many ways to "lose weight", but they are all inseparable from "fineness" and "specialization." 2016 is the first year of the 13th Five-Year Plan and also the year of supply-side reform. In the two sessions of the National People's Congress that just passed, "cutting overcapacity, destocking, deleveraging, and adjusting structure" was pushed to the forefront by representatives and committee members. The LED industry is one of the industries currently suffering from overcapacity. Small and medium-sized enterprises should fully consider their own advantages and shortcomings, return to seeking truth from facts, and avoid the catastrophe caused by the one-sided pursuit of big and comprehensive. In addition to transformation and upgrading, and eliminating backward production capacity.