The Development of LED Display Screen Is Highly Mature, but the Industry Is Increasingly Polarized

We all know that every industry follows a certain law of development, which we call industry life cycle theory. The life cycle of the industry mainly includes four development stages, from infancy, growth, maturity and recession. The same is true for the LED display industry. After years of development, the LED display industry has entered a new stage of development. We can obviously feel that the industry has entered a highly mature development stage. During this period, the market growth rate is not high, the demand growth rate is not high, the technology is mature, the industry characteristics and industry competition are very clear and stable, the buyer's market is formed, the industry profitability is reduced, the development of new products, new technologies and new application fields is more difficult, and the industry entry barriers become higher. In this baptism, the stronger the stronger, the weaker gradually withdraw from the market, so where should most screen enterprises still drifting in this famine go?

Jungle law: the industry is increasingly polarized

In the development process of each industry, the jungle law of survival of the fittest is an eternal theme. Looking back on the development of the industry in recent years, China's LED display industry has experienced the most severe baptism in the industrial process. A number of industry pioneers have become martyrs, a number of powerful enterprises have reached the top of the pyramid through the capital market, and many LED display enterprises are still hovering on the edge of life and death. On the one hand is the cruel survival of the fittest game in the process of accelerating the industry process; On the one hand, the feast of market demand growth and the opportunity to "grab the position" again (encounter), enterprises and the market will continue to perform ice and fire.

According to statistics, the overall market scale of global LED display has continued to grow steadily since 2015. In 2019, the global LED display market reached US $5.6 billion, and the global LED display market is expected to reach US $9.349 billion in 2022. Although the prospect of the market is very considerable, it also means that the competition in the LED display market is more intense. Under the condition of continuous and slow growth of the market as a whole, the LED display market is becoming more and more saturated, gradually becoming a red sea market, and the overall growth of the LED display market is limited. In the past, the first-line brand enterprises represented by listed companies continued to make efforts in production lines, channels and brand construction, with obvious advantages. However, small and medium-sized enterprises have low financing and anti risk ability, serious product homogenization and lack of competitiveness. Under the continuous downward trend of macro-economy, some small and medium-sized enterprises will be difficult to cross this threshold. With the filtration of small and medium-sized enterprises, the industry resources will be further occupied by powerful large enterprises. In the case that the business of large enterprises is in urgent need of expansion, M & A and cross-border will become a significant way for LED display enterprises to expand their scale and pursue profits in the future, and will continue to occur in a long time and become the norm.

Two obstacles: slow technological innovation and imperfect industry standards

During the rapid rise of the industry in the past, in addition to China's unique advantages such as improving the industrial chain and low production cost, the technical threshold of the more important industry is low. Popular LED display products are easy to be imitated, and even minor innovation based on imitation is not complicated. After localization innovation, localization marketing and price reduction, It is easier to compete for market share. However, with the development and growth of the domestic LED display industry, whether in terms of market or technology, other foreign-funded enterprises do not have the significance of learning. Domestic screen enterprises can only ask for the future through their own technological innovation, and even fall into the "no man's land" of development, without learning and reference objects. Therefore, the space for technological innovation and iteration in the LED display industry is becoming smaller and smaller, and the probability of revolutionary product presentation is becoming smaller and smaller.

At the same time, the formulation of industry standards has been put on the agenda by more and more enterprises, associations and other organizations. As the saying goes, "third rate enterprises sell products, second rate enterprises create brands, and first-class enterprises establish standards" began to take root in the industry. For a long time, the price war in the industry has caused a lot of chaos in the industry. Due to the lack of unified standards, some enterprises break through the bottom line step by step in order to make huge profits, sell inferior products at ultra-low prices, further muddy the muddy water of the price war and expand the disadvantages of the price war, resulting in the repeated reduction of product prices and harming the benign development of the industry. The lack of unified industry standards is one of the important reasons that hinder the continued development of LED display industry.

Cross border development and differentiation have become the norm of the industry

If it does not break out in silence, it will perish in silence. Of course, screen enterprises struggling in the LED display industry will not easily quit or give up. If enterprises want to obtain better and greater development space, cross-border integration is a very good choice. Cross border development is nothing new in the LED display industry. In addition to cross-border education industry, cross-border sports industry development is also common. Of course, from the LED display field to another completely unfamiliar field, to realize a series of processes from product development to paving channels and then to establishing word-of-mouth, the risks are often unexpected, and all kinds of situations may occur. This requires screen enterprises to have accurate judgment and the ability to deal with various situations.

In addition, in addition to cross-border development, the differentiation route is still the mainstream route selected by most screen enterprises. How to become a leader in the industry and attract the attention of the public has become an irresistible "popular trend" of LED display enterprises for a time. Catering to the consumer needs of end market customers and creating differentiated product positioning for customers in different fields and strata has become a breakthrough for many manufacturers. In fact, in the final analysis, this is also a form of customized LED display. The difference is that further standardized segmentation of customized products and integrated segmentation from a more professional and industry level can not only improve customer satisfaction and loyalty, but also greatly improve the differentiation of products and brands, Bring a series of competitive advantages to enterprises. However, differentiated product positioning also requires higher requirements for product R & D capability, process manufacturing level, after-sales service, market development strategy and even enterprise management of screen enterprises, especially some high-end display projects. Therefore, screen enterprises can better catch up with the development trend only by continuously improving their own strength, Gain a firm foothold in the wave of industry integration.

In fact, no matter how mature the industry is, opportunities always exist. Just as in the era when Microsoft system dominates the world, apple can still break through by relying on technology and innovation. So, now that the LED display is still mixed, what reason do we have to complain about "time is not with me"? At present, although there are challenges, there are also opportunities. The so-called heroes emerge in troubled times. Although we can't place a standard answer on where screen enterprises should go next, we also believe that many LED screen people already know well. What new pattern will be presented in the LED display industry in 2020? We'll see.