In 2019, terminal customers have a steady development. The growth demand is mainly concentrated in small spacing, heterogeneous screens, and functional screens. These types of screens will have a leap from quality to quantity. Display companies must rely on their own product models. Upgrade or application of innovation and other methods to complete the new model of anti-war, to ensure their own profit growth, the era of major reshuffle of China's LED display industry is about to take shape. The formation of the new model also highlights new advantages.
Subdivide categories and accurate positioning
The market segment of the LED display industry has initially begun to take shape in 2018, mainly divided into: small pitch market, transparent screen market, special-shaped screen market, flexible screen market, creative screen market, LED rental screen market …… Among them, LED companies have many new faces. After the market segmentation, the profit point of the company has increased, and the relative raw material cost has been reduced, so that LED companies have formed a healthy development; they are in their main segmented areas. A relatively solid brand foundation has been accumulated. These all indicate a phenomenon: the brand pattern of various sub-categories in the industry is taking shape, and the scale growth of strong brands is very strong.
As far as 2018 is concerned, a number of representative companies have emerged in various sub-categories, and they have also formed the initial scale of industry brands. They take advantage of the company's own advantages, overtake the company's products, complete product upgrades and transformations; product segmentation, build their own brands, occupy a certain market share in the market, and grow very fast every year, and some are segmenting the market After the completion of product positioning, mergers and acquisitions or acquisitions, using big brands to expand market influence, using capital mergers to build co-brands, forming a combination of intensive technology and intensive capital, mergers or acquisitions, the other party often In a certain market segment, it has a certain degree of popularity, and the strong team will work together to build a larger brand.
In 2019, if small and medium-sized screen companies must accelerate reforms in subdivisions, strive for products to occupy the category market, strive for a favorable brand positioning, and achieve the ultimate in products, otherwise they will face no product advantage and in the market If it can't form a position on the top, it will lose its competitiveness.
Intensified competition in the future
In the future market, one category in the sub-categories will form a number of strong brands, and new brands will continue to appear. Because the same types of products in the industry are universal in terms of peripheral equipment and software, and are applicable to multiple categories of products. In the field of small pitch, product enhancement and increased brand competition have become a scale, with an unstoppable future development trend.
On the one hand, with the continuous improvement of industry awareness, end customers are familiar with products and the market to a certain degree, and they also have a certain understanding of the raw materials of LED display screens, and the price is no longer determined by the manufacturer. , But customize products according to the needs of customers, and the price transparency is very high, and the profits of the manufacturers are constantly shrinking. Now that small-pitch products want to develop, they must target the mid-to-high-end market, not only improving their quality and performance requirements, but also further releasing their personalized needs. This change in downstream market demand is also constantly stimulating the upgrade and optimization of upstream manufacturers’ small-pitch products, and promotes the further segmentation of their products, such as small-pitch advertising machines, small-pitch TVs, COB small-pitch, outdoor small-pitch, and small-pitch. Subdivided products and applications such as leasing have appeared one after another.
With the continuous improvement and refinement of small-pitch technology, the definition of small-pitch has been constantly refreshed in recent years. P2.5 is already a conventional product in indoor screens. In 2019, the industry will develop with P1 for small-pitch .5 to P2. Therefore, the development of small-pitch products will be divided into two aspects, because the small spacing between P1.5 and P2 requires manufacturers to have higher demand for equipment, which is very difficult for many small and medium-sized manufacturers with tight capital chains and insufficient product development capabilities. , Because it is not only necessary to have a large number of R&D and design capabilities and personnel, but also to update production equipment, which will form small-pitch conventional manufacturers and small-pitch mid-to-high-end manufacturers.
Many low-end manufacturers in the small-pitch industry are facing the situation of being eliminated or slowly transforming. Even if some manufacturers have now replaced their production equipment, they will also face pressure on production capacity. How can they reduce costs without sufficient production capacity? The phenomenon of product upgrades and increased competition in the same segment does not only appear in the field of small pitches, but also in the field of transparent screens. The differentiated market is further subdivided. Fierce competition is accelerating product upgrades and also prompting screen companies to rack their brains to make ultimate products. Subdivision of applications, etc., will become a major development trend of the next industry.
Stable channels coexist with multiple channels
There has always been a dispute over channels in the LED display industry. In particular, various screen companies continue to penetrate the dealer system into major cities across the country, and even extend their tentacles to the village-level market. The channel market is becoming more and more popular. Recently, large domestic and foreign LCD manufacturers are also designing into the LED industry. They use their original data channels and capital advantages to enter the LED display industry. They have strong strength and strong brand influence. Power to make them more competitive in the market.
Let's look at the previous channel model. Although many screen companies have become stable channels, the diversification of channels in the LED display industry is also accelerating. Screen companies are now turning their attention to broader overseas markets. In recent years, more and more screen companies have gone abroad to explore new overseas channels and new markets; strong alliances have added new opportunities for screen companies to fully capture the channel market in the region. In general, the diversification of industry channels is an opportunity and a challenge for large and powerful companies. Screen companies can accelerate their layout in omni-channels. Of course, brand screen companies that take a differentiated business route can also choose to try channels. Research.
At this stage, Hisense Brake Seiko enters the small-pitch market, and strives to build new brands with high quality, high quality and innovation, so that the LED industry has a healthy development.
