The key to curing the haze in nature lies in environmental protection. The key to curing the haze in the LED industry lies in positioning.

This year is the first year of the 13th Five-Year Plan, and the recently held National Two Sessions have attracted great public attention. It is understood that in 2015, many places across the country suffered from severe smog. Therefore, in this year’s two sessions, representatives of the National People’s Congress wrote proposals for smog control many times. When many members proposed measures to solve the smog, they believed that we should vigorously develop energy-saving and environmentally friendly industries and promote the upgrading of industries with high energy consumption, high emissions, and low efficiency. Obviously, the treatment of nature's haze lies in environmental protection, but for the majority of LED people, the "haze" that has enveloped the LED industry is even more worrying. How to completely eradicate the "haze" that has been permeating the industry is our biggest focus. The author believes that accurate positioning is the key in the powerful "smog" caused by overcapacity, product homogeneity, and price wars.

As we all know, the high profits and low threshold in the early days of the LED industry attracted a large number of companies to enter. As the number of companies entering the industry increases, the LED industry has shifted from the era of huge profits to the era of meager profits. The profits of a group of small and medium-sized enterprises without scale and special products have begun to decline.

In order to capture higher profits and expand market share, these companies did not consider the issue of positioning, but blindly expanded production capacity. As a result, the products were not sold, and the money was not earned. Instead, they incurred a lot of debt, and some even ended up in bankruptcy. Last year, Zhongxiang Innovation and Light Energy Technology were typical examples.

In addition, the "herding effect" is also vividly reflected in the LED industry. The so-called herd effect refers to what others do, and I follow suit. This directly leads to the homogenization of LED products. Therefore, in this chaotic industry situation, positioning is crucial.

So, how to position it? The author believes that we can start from three aspects.

1. Products: It is necessary to increase the research and development of new products, adhere to independent innovation, and increase the added value of products. At the same time, we will develop differentiated products and build independent core competitiveness.

2. In the market: Give yourself a clear positioning, know what you can and cannot do, abandon those ideas that seem very profitable but unrealistic, develop rationally, concentrate limited resources and energy, stick to a certain market segment, and do your best to become a leader in this field.

3. Brand: We must establish brand awareness and adhere to the principle of quality first. Only by using good products can we impress customers. Secondly, make full use of the current Internet platform to promote your brand and build your own brand.

2016 is destined to be an extraordinary year. It is predicted that the global LED display market demand will continue to grow rapidly in the coming period, with an average annual growth rate of more than 20% in the next five years. It is expected that the global LED display market size will reach 30 billion US dollars by 2020. Therefore, the LED display industry still has a lot of room for development. In this situation where the situation is gradually improving, whoever can accurately position, withstand the waves and clear the fog, will be the winner.