The LED rental market is generally on an upward trend, but there are still problems that need to be solved.

The current situation and problems of the rental market

After the previous "intense" competition in the LED rental market, the market in first-tier cities is basically saturated, and the market in second- and third-tier cities has a certain increase. The market competition point of the industry has gradually shifted to second- and third-tier cities; at the same time, it is developing in small spacing At the beginning, although the display effect made a qualitative leap, it also increased the rental cost accordingly. Therefore, although the small spacing stimulated the development of the rental market, it also slowed down the explosion of the rental market. It was not until the recent decline in the cost of small spacing that the rental market began to "shine" again.

Since 2012, the industry has been in a period of fierce competition, and the "price war" has intensified. The price of rental screens in the end market has dropped rapidly, and the price of manufacturers' shipments has also dropped off a cliff. For example, the mainstream product of rental screens - P3.91. Industry insiders revealed that the price of manufacturers' shipments last year could reach 8,800 yuan/㎡, but this year it is only 4,800 yuan/㎡. Profits have shrunk so severely that many screen companies said they "can't stand it"! The current leasing market seems to be in a "neither embarrassing nor embarrassing" situation: the "price war" has made the cost price of the entire industry almost transparent. Some companies even offer customers prices lower than the average market price, but they can still do it with "relentlessness". It feels that the price of the entire market has been shaken by the "price war".

At the same time, the number of leasing manufacturers has grown from a dozen or so to now numerous, with varying overall strengths, resulting in some inferior products flowing to the market, tarnishing the image of LED displays and reducing the credibility of the industry. In addition, the payment cycle has been delayed again and again from the initial spot payment to the present... The capital chain of screen companies is becoming increasingly tight, and the invisible occupation of money such as staged payment and operating income sharing is becoming increasingly serious. These "stubborn diseases" are hindering the development of this leasing market.

How to develop the rental market

Operation: Integrate rental resources and channels with screen companies, optimize their own industrial chain structure, save costs and further develop; for terminal display rental companies at the end of the entire rental business, "light capital, heavy service, light procurement, heavy design" is very important. It is recommended that domestic display rental companies choose high-quality display manufacturer resources and platforms, and adopt the "borrow + lease" form to complete the rental performance business; of course, the most important thing is - stop fighting "price wars"!

In addition, domestic rental display manufacturers can learn from foreign development models: some well-known overseas LED rental display manufacturers develop and design innovative LED display rental products, and control LED display rental projects based on their products. Rather than completely overturning their own products, they automatically give up the initiative and reduce LED display manufacturers to mere "coolies".

Products: If you want to achieve this, you must work hard on products: At present, most LED rental displays are emphasizing and highlighting their four major characteristics: portability, thinness, seamless splicing, and shock resistance. Therefore, for the production of LED displays, in addition to the general requirements for LED displays, rental LED displays also need to meet a series of special requirements. requirements, in order to meet the needs and usage habits of rental customers; in addition to ensuring product quality and launching products with high stability, standardized specifications, high-definition display, high density, and high adaptability, we can also launch high-precision rental products and customized services for the high-end market. Only when products are guaranteed can we ensure the healthy development and maturity of the LED display industry.

Conclusion: Although there are many problems in the current rental market that need to be solved urgently, overall it is still on an upward trend. It is just in the "adjustment" stage that the market development must go through. If you stick to quality and determine the correct market orientation, you will eventually take off.