Three development trends of LED display industry
Recently, the industrial structure and product strength of LED display screen industry have been continuously improved.
However, with the acceleration of industrial upgrading and transformation, the overall saturation of the market and the recent performance of screen enterprises, all aspects of the market trend show that the next "development trends" of the industry.
In the future, it may be difficult for the terminal market to see explosive growth of demand again and it will continue to be in a stage of "consolidation". Screen enterprises must rely on their own product update or application innovation to achieve profit growth. The era of great integration of China's LED display industry has come.
At the same time, under the industrial background of this era, there are three relatively obvious development trends.
Trend 1: The brand pattern of category segmentation takes shape
The market segment pattern of LED display industry has already begun. Recently, there are some small and medium-sized screen enterprises with outstanding performance in a certain segment in the industry, such as YIPLED, which rapidly rises with the "ice screen", INFILED, which specializes in the export of indoor display applications;, AUROLED, which takes the leading role in the field of transparent screen fixed installation, etc. In addition, the layout of several leading screen enterprises in the industry using their subsidiaries to develop market segments is becoming clearer: Glux under Leyard is a leader in high-end engineering field, and ROE creative display under Unilumin is mainly responsible for the LED rental display screen and LED creative display product market. They have accumulated a relatively solid brand foundation in their main segments, which indicates a phenomenon: the brand pattern of each segment of the industry is taking shape, and the scale growth of strong brands is very strong.
The current form of the industry is the emergence of a number of representative screen enterprises, a number of representative industry brands. Some seize the gateway of industrial upgrading and successfully complete their own adjustment; Some choose the right segment of the market, quickly become the field of well-known brands, some take the lead screen enterprises smoothly "big sized car", with a strong backup; These screen enterprises have begun to take the lead in terms of size, growth rate, or brand reputation, and often such a brand can represent an extreme market segment. When it comes to small-space televisions, for example, it is hard to surpass Leyard. If mentioning about a staging transparent display screen, people must think of YIPLED.
Therefore, small and medium-sized screen enterprises that want to make a difference in the next step must strive for a favorable brand positioning in the category segmentation, and make the product to the extreme, or they will face the situation of homogenization competition in the field familiar to rivals.
Trend 2: Upgrading with segmented products and intensifying competition
It is worth noting that although the category has formed a strong brand, it does not mean that there is a lack of challengers. Because the same type of products in the industry, no matter the type of hardware facilities or solutions are in multiple categories and even diversified development. Especially in the field of small space, product upgrading, extreme segmentation, intensifying brand competition has become an irresistible trend.
On the one hand, with the intensification of industrial transformation and upgrading, end-customers' cognition of products and market is becoming more and more mature. Price is no longer the main factor whether they want to buy or not, and product performance becomes the main criterion for market consideration. Especially for the small space products in the middle and high-end market, not only the quality and performance requirements are improved, but also the personalized demand is further released. Such changes in the downstream market demand are also constantly stimulating the upgrading and optimization of the upstream manufacturers' small-spacing products and promoting the further subdivision of their products, such as small-spacing advertising machine, small-spacing TV, COB small-spacing, outdoor small-spacing rental and other subdivision products and applications successively appear.
On the other hand, with the continuous improvement of small-spacing technology, the definition of small-spacing has been constantly refreshed in the past two years. At present, products below P2.5 have been regarded as regular products, and the industry's definition of small-spacing has been refreshed below P2. And it marks a watershed in small spacing industry has come, because the P2 need to manufacturer to replace the equipment to do the following small spacing, for now a lot of capital chain tension, product research and development strength is not enough of the small and medium-sized companies is very difficult, because not only requires a high level of the research and design ability, small spacing at the same time change the requirements of production equipment is greatly boosted screen companies enter into the field of small spacing capital threshold.
This means that a lot of low-end production capacity in the small-space industry is likely to be eliminated in the future. Even if some manufacturers have changed their production equipment, they will still face the pressure of production capacity. How can they support the cost reduction without sufficient production capacity? The phenomenon of upgrading of subdivided products and intensifying competition not only appears in the field of small space, but also in the field of transparent screen. The further segmentation of differentiated market and the fierce competition in accelerating product upgrading also urge screen enterprises to do extreme product and application differentiation, which will become a major development trend of the industry in the future.
Trend 3: coexistence of strong channels and multiple channels
The channel competition in LED display industry has never subsided, especially as various screen enterprises continue to spread their dealer system into major cities across the country and even extend their tentacles to county-level markets, the channel market is becoming more and more hot. And recently listed screen enterprises to speed up the layout of the channel market, also let the channel market more lively, Leyard, Unilumin needless to say, itself has a strong strength, return to the channel market they also have a strong brand influence, and Absen and QIANGLILED ‘s cooperation also make each other more competitive. In addition, in recent years, some screen enterprises specializing in subdivided channels have appeared in the industry, and the coexistence of strong channels and multiple channels is becoming more and more clear.
It is worth noting that although many screen enterprises have become strong channels, the channel diversification of LED display industry is also accelerating. The "One Belt, One Road" and other opening-up policies have made screen enterprises turn their eyes to broader overseas markets. In recent years, more and more screen enterprises have gone abroad to explore new overseas channels and markets. Combination for screen enterprise comprehensive win way to add new channels to market in the region, plus a lot of screen are mature or are developing niche channels, such as Absen's hotel business, HUAXIA LUSTER established leasing division, etc., have the diversity of overall industry channels for the strength of large enterprises is opportunity and challenge, screen companies can speed up the layout in all channels, and of course to take differentiation course brand screen enterprise also can choose one or two channels of subsoil.
The LED display from the point of industrial structure, our country also gradually changed in recent years, the industry specialization is formed: focus on display production manufacturers, seller market channels, engineering installation service operators and other kinds of specialized enterprises, a clear division of responsibilities, close cooperation, development and win-win situation is forming, specialized division of labor is beneficial to do fine, do big, do strong, to promote the healthy development of the industry have a positive significance. At the same time in the process, with the continuous optimization of industry development, the end product will be more diversified, refinement, and the market will also through the rounds of the competition and elimination, eventually forming a few big companies leading screen, many "high precision designed" companies holding the big picture, and the pattern of the small and medium-sized enterprises for the rest of the market, for the whole LED display industry, will be a great leap-forward development.
