Lei Jun rectifies the "trend theory", LED screen companies should avoid being opportunists

On April 23, the 2016 China Green Companies Annual Conference was held in Jinan, Shandong. Lei Jun gave a speech on the theme of "Xiaomi's Tomorrow: New Domestic Product Movement".

In his speech, Lei Jun mentioned the "wind theory". He believed that everyone has misunderstood his "wind theory" and regarded him as an opportunist. In fact, he himself is known for his persistence and persistence, and is definitely not an opportunist. He said that in the past 5 or 6 years, if Xiaomi achieved a little success, it was only because of typhoons, and he was just a pig. At the same time, he believes that Xiaomi's future must be to make products that touch people's hearts in a down-to-earth manner and to be patient. "If you don't have patience, you will gain easily and lose quickly."

Obviously, Lei Jun is justifying his "trend theory" and his own name. His so-called "trend theory" is actually to sniff out business opportunities when opportunities come, seize them, and make solid products. Perhaps this is the main reason why Xiaomi's market value has increased 180 times in the five years since Lei Jun founded it, and its last round of valuation reached US$46 billion.

However, in our LED display industry, the "trend theory" has been spoiled, especially in the field of small spacing. Many companies blindly follow the trend and plunge into the small spacing industry. Especially in the past two years, with the maturity of small-pitch display technology, the technical threshold for small-pitch products has been lowered, and a large wave of companies have flocked to it. At the same time, compared with conventional LED displays, the profit of small-pitch LED displays once exceeded twice that of the former from the beginning of 2013 to mid-2014. Under the guidance of "huge profits", 2015 finally formed a general explosion of "participation power".

It is undeniable that under the influence of factors such as overcapacity, lack of brands, price wars, and new upsurges in mergers and acquisitions, technological innovation, counter-trend expansion, and diversified layouts, small-pitch displays have indeed become a new "outlet" in the display industry due to high profits. However, when the cost, price, and profit of small-pitch displays have declined, if they continue to squeeze in, they will only become an unaccounted-for pig in the "outlet."

So, how should we treat the "outlet" of the display industry? This is a question worth thinking about for every LED person.

Earlier, our reporter discussed this issue with many companies. Many companies are still rational and will not dwell too much on the "windows". Among them, Lu Yantao of Marui Optoelectronics made it clear that he does not agree with the trend theory, which is a bit speculative. It is crucial to look at the trend rationally, think clearly about your own advantages, use your own strengths to conquer the market, and strive to build a century-old enterprise.

The editor believes that in fact, the "trend theory" has two sides, with advantages and disadvantages. If you blindly follow the trend and jump into the trend without considering your own reality, you will either become a "nouveau riche" or become a victim. But if, as Lei Jun said, when opportunities come, and are patient and down-to-earth in making products that touch people's hearts, the company will eventually taste the sweetness of the "wind".