Many industry people say that from the time of 2015 to the beginning of 2016, it seems that the LED display industry is getting harder and harder. Is it true? The data display is not true. It’s just that your market share has been “robbed”, but your profits have been compressed.

2000-2015 LED display application industry market size (unit: 100 million yuan)

The overall situation of the national LED display industry in the past 6 years (unit: 100 million yuan)

Source: China LED Display Application Industry Association

The data shows that from 1.4 billion in 2000 to 33.5 billion in 2015. In the past 15 years, the market share of LED display has increased 23 times, and the market share has not decreased. In addition, Yan Shirong, president of the Shenzhen LED Industry Association, said: "The LED display industry is developing very fast and has become the second largest segment of the LED industry after LED lighting. It is expected that by 2020, global LED display The market size of the screen will reach 30 billion US dollars.". It can be seen that the market share of LED display will continue to increase in 2016.

Then the market share has increased, but why is the business getting harder and harder? - Was robbed! Who was robbed? - Merchants with higher brand awareness in the same segment.

Brand enterprise layout low-end channels

After more than ten years of development in the LED display industry, the market structure has basically taken shape. After the big waves, several large enterprises with annual sales exceeding 1 billion yuan have emerged. The rapid intervention of capital has made the pattern of the middle and high-end market tend to be stable. The high-end sector is basically playing in these companies. However, the low-end wholesale market is full of variables and irregularities, which is why it is seen by brand companies.

In the past year, we have also begun to see some large-scale brand companies begin to lay out the low-end channel market. At present, there are only 2 or 3 enterprises with a sales scale of over 1 billion yuan, and there are only a few companies that can play the high-end market and have spared no effort to enter the wholesale market, such as Zhou Ming, Liard, Ai Biesen, etc. In the middle, the layout of the middle and low-end market is very lively. At present, in the field of LED display, the better companies that do wholesale channels are powerful giant color, Helilai, Mingchang Optoelectronics, etc. With the intervention of these big brands, the market will be further divided.

At the same time, in the research and development of products, brand companies have begun to penetrate the low-end market. Undoubtedly, brand companies rely on years of accumulated influence, as well as their own strong financial strength, have the capital to achieve "big and complete" product coverage, so the original small and medium-sized enterprises' market share is also eroding.

Perhaps the industry still remembers that in the past year, Abbison’s “100,000 S3 cabinet price cuts by 50%” once set off a hot debate in the industry. Ai Bisen, who has always taken the high-end route, started to lay low and medium. The end market, the industry can not help but stunned. Abbyson also responded. "We are not fighting price wars. We have only developed a product that is more suitable for the third world markets of Asia Pacific and China. Abbyson has already occupied these high-end markets in Europe, America and Japan, but The market in the third world is still relatively large. To expand the international market share, these places cannot be ignored. Considering the market conditions in the third world, we will give customers as much as possible while maintaining a certain reasonable profit. Offer."

With the large price cuts of large-scale brand enterprises entering the low-end display market, the original enterprises will cut prices and compete for prices, which will lead to a decline in profit margins. In addition, there is still a trend in the LED display industry: packaging companies are unwilling to be lonely and begin to intervene in downstream applications. Enterprises compete with each other's sites, the competition pattern of the LED industry is staggered, and the market share is inevitably compressed.

Brand value added to further divide the market

Nowadays, we have entered the Internet era, and the LED display industry is also being transformed by the influence of the Internet. The competitive landscape of enterprises has shifted from the product competition in the industrial era to the brand competition in the Internet era. This kind of competitive change is accompanied by the transformation of the times and the shift in consumer demand.

As a consumer, what is enjoyed is the simplification of information collection and the intelligentization of services brought about by this change in communication pattern. In this context, consumers have more information, more comparisons, and more choices. Therefore, consumers in the Internet age are more rational than in the industrialized era, and the expansion of information has made him see more choices.

In the past, we used to say that we should not be a fool, but we still have a lot of luck. But the Internet era is not just taking a block display module, just sticking a brand can win the trust of customers. In the Internet era, brands are particularly important. Brands are the bottom line and guarantee of customers.

Just like in daily life, we usually consciously look for some well-known products when buying products. Especially after online shopping is popular, many products can't see the real thing. As consumers, we value their products more. The brand, this is an obvious view of consumption in the Internet era. For consumers, branding means a guarantee.

Some people may question that LED display products are not suitable for online sales at present, but it must be noted that this is only the present, and the future prospects are there. At present, some of our display companies have begun to take action. For example, Liard has opened a shop in Jingdong, and even many display companies have already displayed their products at the trading website of HC360, and gradually moved to online trading. The road, why is this? Because the trend of online trading is there, therefore, under such a trend, the brand is a great weapon for the future success of the company.

Nowadays, the spirit of the craftsman has been deeply rooted in the hearts of the people. The bosses of both large and small enterprises know the importance of improving the quality of the products. Many of the spirited bosses have also gone to Germany and Japan to learn the techniques of artisan manufacturing. But have you discovered that even if the heads of these companies really produce good products, they may not be able to sell good prices for good products, and they will be recognized by the market. This is the performance of low market influence, and this is It means that LED display companies will welcome a new era of brand power. Now, the brand building of enterprises may be grasped at both ends. One is a material product and the other is an expansion of influence.

All in all, in the Internet age, branding is more important than doing sales. Products with opaque domestic prices need to be re-marketed, product positioned, and re-priced to seek transformation, otherwise market share will gradually erode.

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