The LED industry market is facing a cold market and should be broken through with innovation

The 2015 Shanghai International LED Exhibition has come to an end, but many "highlights" that emerged at the exhibition are still fresh in people's minds. At the exhibition site, the number of companies exhibiting products such as small spacing, transparent screens, spherical screens, LED advertising machines, etc. has increased significantly; direct plug-in products have also been innovated. When the "spacing" is not as good as surface mount, they are breaking out in "transparency, ventilation, and viewing angle range"; COB packaging continues to develop, and its product types are becoming more and more abundant, gradually narrowing the gap with surface mount; the spacing of rental screens is getting smaller and smaller, and is gradually moving towards "small spacing, indoor and outdoor ventilation" The simple maintenance functions of LED displays are being valued by more and more companies, and many LED companies are promoting front-end maintenance products; LED displays are equipped with 3D, 4K, AR, somatosensory interaction and other technologies. From the original "gimmick" to the increasingly mature products, they are only to bring a better experience to users... From the above situation, it can be seen that the added value of technology is gradually becoming the main competitiveness of products.

The current LED industry environment is not good and business is difficult to do, which is a true reflection of the industry. When the market is cold, LED companies should work hard, learn to assess the situation, and appropriately adjust their development strategies based on the overall situation, and avoid being eager for quick success and short-sightedness.

Before the deadline, a piece of news that "400,000 Chinese tourists spent 100 billion yen in Japan during the National Day" attracted the attention of the author, and the topic continued for a while. It is understood that most of the 100 billion yen was spent on purchasing Japanese goods. Why are Japanese goods so popular among Chinese tourists? In addition to the fact that the RMB is more durable in Japan, in fact, for a long time, Japanese goods have been synonymous with "high quality and high technology content", and gradually everyone has formed a fixed mindset that "Japanese goods are good". So what inspiration does this bring to the LED industry?

In the author's opinion, the reason why Chinese tourists "buy so much" in Japan may have a lot to do with product quality, service and technical content. Looking back at the LED industry, homogeneous products with low "gold content" are rampant, and unscrupulous merchants are even selling substandard products as good ones. Fire incidents occur frequently in LED displays, which makes consumers tighten their wallets and also chill their hearts.

The LED display industry has long bid farewell to its original extensive growth, and the pattern is undergoing fundamental changes. Guan Jizhen, chairman of the LED Display Application Branch of the China Optics and Optoelectronics Industry Association, has made it clear that in the next few years, the regional concentration of the LED industry and the trend of agglomeration of larger enterprises will become more obvious. The integration of industry resources, corporate mergers and acquisitions, reorganization, and enlargement will bring about major adjustments to the LED display application industry structure in the next few years. Passive or active mergers and acquisitions and integration in the industry will be the general trend in the next few years, and the competitive advantage will further tilt towards companies with technological advantages, channel advantages, and scale advantages.

The industry environment is not optimistic. If LED companies want to survive in the fierce market competition, they must strive for differentiation and spend more time on products, technology, services, etc. Under the new situation and new structure, those who continue to muddle along and fail to make progress will be eliminated by the market. LED companies should pay attention to independent innovation and development, increase investment in innovation and technological innovation, continuously develop new products, and lead the market.

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