As an important branch of the LED industry, China's LED display industry has successfully led the development of the world LED electronic display industry in technology and innovation after years of development. However, as its pace of development continues to accelerate, the problems faced by China's LED display industry are becoming more and more obvious, such as product homogenization competition, frequent price wars, and lack of brands. These unfavorable factors not only seriously hinder the health of the industry. Development, but also increased the risk of LED screen enterprises.
In the face of increasingly fierce international competition, how can Chinese LED display companies continue to play their own advantages in manufacturing, technology and innovation, highlighting the brand influence of “Made in China” and the technological innovation of “Made in China”, achieving It is especially important to create a "transformation" to China.
Looking back at the development of LED display screens for more than ten years, the LED display industry in China has already experienced a serious structural oversupply, that is, the surplus of medium and low-grade homogenization products. The weak market demand and overcapacity in the industry have made the LED display price war very fierce. The price cuts from the middle of this year have swept the entire industry, which has led to a large-scale price war. Insiders said that the LED display industry in 2015 will face a more difficult situation.
For large companies with capital and scale strength, price cuts are an effective way to dominate the market, but for most SMEs, they are forced to participate. Because the strength and scale of their own enterprises are not the same as those of large enterprises, the result is often heavy losses and damage to interests. Frequent price wars not only severely compress the profit margins of these LED manufacturers, but will further affect product quality. In order to reduce costs, some enterprises at the expense of the quality of products and services, resulting in a large number of inferior products flooding the market, which not only harms the interests of consumers, but also disrupts the order of the LED industry, and oversees the future development potential of the LED industry. Profit margins.
In recent years, due to the quality of LED display screens, the "fire door" has occurred frequently, which poses great danger to the safety of personnel and the economy of customers. Obviously, for the customer, the quality of the LED display is the most important. Therefore, in order to achieve a truly healthy and rapid development of LED display enterprises, it is still based on the company's own technological innovation, research and development of more advantageous products to the market, and the formation of the LED display brand known to the public, in order to truly seize the market.
China's LED industry is in danger of coexistence, but the price war will only make the company only dangerous and lose opportunities! At present, the phenomenon of price warfare with low-end inferior products in the industry has become very common. For industry leaders, they have the responsibility and obligation to maintain the industry competition rules, and provide customers with low-cost quality under the premise of ensuring product quality. The product.
On the other hand, the market does not exclude the decline in production costs of products caused by scale advantages, and the cost reduction naturally drives down the price of products. For example, some large-scale LED display companies have achieved a certain scale, have certain technical strength to expand the market, and price cuts have become a breakthrough in opening the market.
Quality is fundamental and brand is the direction. In a sense, China has entered the era of brand economy. In the field of LED display, brand influence can not be ignored.
The brand is the soft power of the enterprise and the core competitiveness of the enterprise. In the past two years, the continuous price war in the LED display industry has also rapidly eliminated the smaller LED display companies while lowering the gross profit margin. Only the brand can bring added value to the enterprise. From the group of LED display screens that have closed down in recent years, it is not difficult to see that the enterprises that have withdrawn from the enterprises are often enterprises with lack of characteristics and brand characteristics, and enterprises that have never stood up after the storm have always been deeply rooted in the hearts of the people. Products and services featuring distinctive businesses. A brand is equivalent to a business card of a company or a product. It has an inestimable potential value and requires long-term investment and persistence to establish. It is the purpose of the company's survival and the competitiveness of the company.
In today's international LED display market, it is difficult to see the Chinese brand. Most Chinese LED companies are doing OEM work for international brands. At present, China's LED display companies are struggling on the brand road, and the lack of corporate brands has become a hindrance for Chinese companies to compete in the international market. The influence of “Made in China” and the innovation of “Made in China” should be reflected from the brand. This is also the problem that the LED display industry should consider.
"Many domestically produced cars are also doing well, but there is still no comparison with BMW Benz. This is the brand effect." Guan Jizhen, chairman of the LED Display Application Branch of China Optical Optoelectronics Industry Association, said that low-price competition is long-term, and enterprises should Own brand and technological innovation to enhance the influence of the company.
In the past two years, the downward pressure on the global economy has increased and the Chinese economy has entered a new normal. In addition, China's demographic dividend will gradually disappear after 3-5 years, and the cost advantage is no longer the capital that "Made in China" is proud of. At the same time, with the advent of the industry 4.0 era, the traditional manufacturing industry will face a more embarrassing situation. To complete the splendid turn of “Made in China” to “Created in China”, LED display companies are required to use innovation as a driving force to carry out transformation and upgrading, abandoning the survival mode of arbitrarily fighting low prices and vicious competition, and strengthening the construction of China. Independent brands to enhance comprehensive competitiveness.
In terms of brand building, Chinese LED display companies should work together to build Chinese brands. "In this respect, we have to learn from Japanese companies, join hands to build brands and seize the world market. A company's brand has been established, everyone should support each other, and there must be competition and cooperation."
The so-called "competition" refers to the cooperation based on the global competition to fully compete. Compared with the competition era, the biggest feature of the competition era is win-win, strong alliance, mutual complementarity, effective resource integration and make up for their shortcomings and shortcomings, while strengthening the overall strength through scale advantage. At present, the disorderly competition caused by overcapacity and product homogeneity and the price war have seriously affected the market order. Coupled with the lack of innovation consciousness, the differentiated route of LED enterprises has been severely hindered, and at the same time it is facing fierce market competition. In order to effectively avoid the risk of industry reshuffle, M&A integration is gradually becoming an popular means for major LED companies as an effective means to rapidly expand the scale of the company, enhance brand influence and increase revenue.
Whether it is mergers, acquisitions, alliances or joint ventures, the road to cooperation or the road to co-opetition is a development direction for Chinese LED display companies. At present, the overcapacity in the LED industry is very serious. In the fierce market competition environment, small and medium-sized LED enterprises are facing the risk of capital chain breakage. For small and medium-sized LED enterprises, it is possible to consider establishing a strategic alliance with the group to warm up, not only enhance competitiveness but also resist risks, and use their strong resources to complement each other and strive to achieve a win-win situation.
In addition, large-scale LED companies with strong strength can swallow small LED companies and take advantage of brand strategy, such as acquiring a second-line brand LED company with the leading cost control level of homogenization products, using cost advantage to follow up the price of opponents and counterattack. An alternative strategy.
At present, China's LED industry is in the stage of rapid internationalization. The competition among LED enterprises has gradually shifted to the brand-led, comprehensive competitive advantage based on strategic leadership, technological innovation and business management. Brand competitiveness reflects the core competitiveness of LED companies, directly related to the profit of LED companies and the future development.
From "price war" to "brand war", from "Made in China" to China's "intelligence", LED industry still has a long way to go. China's LED display companies must keep pace with the times and increase product technology. R & D, improve product quality, focus on brand building, and strive to cultivate LED display brands with independent intellectual property rights.
