The problem in LED display manufacturing seems to be overcapacity, but in fact it is the inability to move up to the mid-to-high end.

 

    China's LED display industry has gone through 20 years of wind and rain. Today, the quality of LED displays produced in China has been recognized by the global market. China's local LED display brands are also growing, but there are also problems such as product homogenization, price wars between enterprises, and malicious competition in the market. The emergence of these problems is often attributed to overcapacity.

 

    However, is China's LED display manufacturing industry like the surface because of overcapacity? The emergence of the problem seems to be overcapacity, in fact, the high-end manufacturing of LED displays does not go well. China's LED display manufacturers are mostly concentrated in the low-end market, and in some low-end markets, the development of LED display technology is relatively mature, and the homogenization of the industry is relatively serious, which will inevitably lead to a series of problems such as price competition.

 

    hand, in the high-end market, there has never been a surplus, and a large number of imported foreign products actually show that there is no surplus in the field of high-end LED display products, but rather a lack of it. This also confirms that the most important problem facing China's LED display manufacturing at present is that it is not high-end.

    Insufficient effective supply of LED display high-end market

 

    export history of LED display products in China has been more than ten years, and it provides more than 80% of the global manufacturing quantity. Various data show that China's LED display products have long entered the international field of view and have been reviewed by countries around the world. However, it is worth noting that although the number of exports is large, the proportion that can really enter the high-end market in Europe and the United States is not large.

 

 

In the past two years, LED display manufacturers have been exporting. In fact, they are transferring excess production capacity. Where does this excess production capacity come from? That is mid- to low-end manufacturing. In addition, even though the number of export products is increasing, they are biased towards markets such as Southeast Asia and India. The Indian LED display market has always been criticized by the industry. Low price has become the only indicator for most Indian dealers to choose products. As for the United States, because of the wind and strong ultraviolet light, the highest surface temperature can sometimes reach 70 or 80 degrees, and the temperature difference changes greatly. Therefore, in terms of the quality of the display screen, the quality requirements for the LED display screen are very high, and the warranty period is generally required to be maintained for at least five years. In this regard, many companies in China currently fail to meet this requirement. Therefore, we can see that my country's LED display manufacturing industry is currently facing the problem of insufficient effective supply, the quality of supply needs to be improved, and there is excess backward and ineffective production capacity.

As we all know, compared with the low-end display market, high-end market users will pay more attention to application effects and downplay application costs. From this point of view, price has become secondary. Only by being able to provide high-quality and guaranteed products to users can truly achieve effective supply.

    Undoubtedly, while the high-end display market provides enterprises with greater creative space and profit space, it also puts higher requirements on the innovation ability of enterprises. In today's large-screen display market, with the increasing maturity of hardware technology, solution innovation has become the key to enterprise differentiation and innovation. This is more evident in the high-end display market, which focuses on display quality. In other words, if related companies want to stand out from many competitors and conquer high-end industry users, they must have a higher comprehensive solution innovation capability.

    key to whether domestic LED display brands can seize the opportunities in the high-end market is whether they can come up with innovative products that are truly technology-leading and meet consumer needs. We all know that in conventional LED display products, the quality is mainly improving, but in fact, there is not much innovation. Most of them are used in the industry's proven and increasingly mature technologies on high-end LED displays. These can be used as selling points for marketing, but they are not the key to entering the high-end market, so "hitting iron needs to be hard".

 

 

    Led screen companies have yet to enter the high-end market

 

    Nowadays, in the case of conventional low-end display price wars, the high-end large-screen display market has recently become a veritable scent, and actively entering the high-end display market has become the consensus of large-screen display companies. Whether it is a traditional strong DLP splicing enterprise, an actively expanding LCD splicing enterprise, or a rapidly rising small-pitch led manufacturer, or even a plasma splicing enterprise trying to counterattack, the high-end display market has been regarded as an important part of market expansion.

 

    There is no doubt that for LED display companies, the high-end display market is an existence that cannot be ignored and directly affects sustainable development. Companies that can stand out in the high-end display market will gain more voice in many aspects such as profit space and brand influence, thus effectively enhancing the comprehensive competitive strength of enterprises.

 

At present, the presence of my country's leading LED display companies in the mid-to-high-end market has become increasingly obvious. For example, Lianjian Optoelectronics, which has persisted despite its media business not developing smoothly, Leyard, which specializes in the high-density market and promotes the concept of LED TV, Alto Electronics, which focuses on financial institutions, stadiums, and outdoor displays, and Unilumin Technology, which focuses on high-density displays and high-end leasing. But unfortunately, they still do not have the absolute say in the industry like Daktronics and Buck in the United States, and there is an uncertain risk of being impacted by small and medium-sized enterprises in terms of market share at any time.

In addition, although our country's LED display companies have gradually grown into companies that export their own brand products to the world, they still appear weak compared with major international manufacturers. At present, the global LED full-color display market is mainly dominated by the United States, Europe, and Asia as the leading industrial distribution and competition areas. Manufacturers in these regions monopolize the high-end product market and have a relatively complete industrial chain. From a global perspective, the internationally renowned manufacturers of LED full-color displays are Daktronics in the United States and Barco in Belgium. They both have strong technical strength and production capacity, and their marketing networks cover most countries and regions around the world. Their products are high-end and expensive. If my country's LED display manufacturers want to gain more recognition in the high-end market, they can only use their technical strength to create higher-quality products.

The domestic high-end display market is gradually rising

Judging from the current development of the industry, the demand for domestic LED display screens has gradually moved from low-end to high-end, whether in terms of clarity, intelligence, networking, stability, or quality requirements. The domestic market will require more high-quality, high-definition, and richer-color LED displays to gradually replace the original domestic low-end LED products with poor quality and confusing pricing. There are potential high-end markets in China, such as airports, high-end urban commercial complexes, TV stations, etc., especially for industries such as advertising, sports events, performing arts, and television broadcasts. After years of baptism, these downstream industries have become more rational, mature, and high-end in purchasing LED displays.

    At the same time, with the rise of emerging media in China, the demand for led large-screen advertising is growing rapidly, and the outdoor large-scale led advertising market is still in the stage of rapid expansion, with great room for growth. Traditional forms of outdoor advertising have been unable to achieve good communication results, and high-definition, 3D, and smart led advertising with image and information dissemination functions have naturally become the new favorite of advertisers and begun to replace traditional printing, neon lights, and billboards. In addition, the target advertisers of the outdoor super-large led advertising market are mainly large brand advertisers. Its dazzling and atmospheric media characteristics determine that it can show a more high-end corporate image. Therefore, advertisers of such high-end customers also pay more attention to the quality of led advertising screens and pay more attention to the commercial value created by high-quality products.

 

    future, with the introduction of industry standards and the concern of enterprises for product quality, there will be more high-quality, high-definition LED display screens on the market, gradually replacing the original products for sale and installed products. Therefore, the domestic high-end LED display market has great potential.