In 2017, the LED display industry will open a new round of bankruptcy tide
Abstract: since this year, affected by the overall economic situation, the price rise initiated by the upstream leading enterprises of LED displays has exerted pressure on the downstream small and medium-sized enterprises. At the same time, the product prices of the downstream leading enterprises of LED displays have not increased but decreased, which undoubtedly divides the market share of small and medium-sized LED display enterprises again. Coupled with external threats, the entire LED display industry will accelerate the reshuffle and integration
the guide printed by form printer has also been used in more than 10000 implantation operations. The LED display industry has developed so far. With the maturity of the technical level and the development of the market, the shuffle and integration of the industry has also swept the small and medium-sized LED screen enterprises with the development and improvement of the industry. However, even so, the concentration of Le and ethanol cannot be lower than 99.5% d. the industry of LED display has been reshuffled. According to incomplete statistics, there are still more than 2500 manufacturers of LED display, some of which have closed down, but there are also emerging enterprises rising, hoping to take a share, and the industry concentration needs to be further strengthened
however, since this year, affected by the overall economic situation, the price rise initiated by the upstream leading enterprises of LED display screen has exerted pressure on the downstream small and medium-sized enterprises. At the same time, the product prices of the downstream leading enterprises of LED display screen have fallen instead of rising, which undoubtedly divides the market share of small and medium-sized enterprises led screen enterprises again. Coupled with external threats, the entire LED display industry will accelerate the reshuffle and integration
the external display technology further divides the market, and the internal market competition intensifies.
for a long time, the LED display industry is not only facing the pressure of internal vicious competition, but also facing the threat of external display technology. Small and medium-sized LED display enterprises that cannot stand the test will undoubtedly face the danger of bankruptcy
from the external environment, with the continuous emergence of sophisticated technologies such as naked eye 3D, AR/VR, mircoled display, OLED in the display field has exploded, and driven by the technological innovation triggered by the global wave of intelligence, LED displays with low technology content and single function have gradually failed to keep up with the pace of the development of the times, and their disadvantages are becoming increasingly serious. Traditional enterprises that are complacent and lack innovation will be eliminated by the market
from the perspective of the development within the industry, the growth rate converged in the second quarter. In the process of development, small and medium-sized LED display enterprises tend to focus on expanding production scale, light innovation and light scientific and technological investment; Expansion of weight and light lifting. This phenomenon of blindly pursuing the expansion of quantity to seize the market and not paying attention to product research and development can only lead to repeated production of low-grade products. The overcapacity of low-end products undoubtedly intensifies the disorderly price competition between the same industry in domestic and foreign markets, resulting in a substantial decline in corporate profits, while the high-end product market is basically occupied by foreign products
in the past few years, in order to seize market share, the competition of price war has reached a white hot stage. In recent years, price is the main means of competition among peers. In order to retain customers and win orders, many enterprises "win" the competition under the condition of low profits or even slight losses
although the price of LED display has gradually increased in the upstream since last year, for the downstream, after years of price war, customers have long been accustomed to low price products. At this time, even if the LED display manufacturer can really increase the price, it should also consider the needs of customers, and there will not be much increase
the price rise has swept the industry, and the price advantage of small and medium-sized enterprises has been greatly reduced.
looking at the LED display industry, the number of small and medium-sized LED display enterprises in China is still very large in the whole LED display industry. In the whole year, there are no more than five enterprises with a main LED display revenue of more than 1billion yuan, and the revenue of most enterprises is less than billion yuan. However, the proportion of market share of small and medium-sized enterprises in the whole industry is relatively small. Due to their own conditions, these enterprises are relatively lack of product value improvement. At the moment of serious product homogeneity, products do not have competitive advantages, and often have to operate in the way of price competition
however, in recent years, due to the impact of the national supply side reform, the state has vigorously promoted the "three elimination, one reduction and one subsidy" policy of five major tasks, namely, capacity reduction, inventory reduction, leverage reduction, cost reduction, and short board reinforcement, as well as related environmental protection, monetary policy and many other factors, the price of raw materials on the supply side has generally risen, resulting in the rise in the price of products in many industries such as hardware, fuel, chemical industry, plastics and so on, The LED display screen industry with high assembly characteristics, because it involves semiconductor, hardware, plastics and other fields, has not been able to avoid a series of product price rises. The price rises led by chip and packaging enterprises upstream of LED display screens have gradually swept the entire industry
as we all know, the survival of small and medium-sized enterprises depends on price advantage, and they can maintain their survival by developing second and third tier markets with price advantage
however, with the general price rise of raw materials, enterprises will inevitably make certain price adjustments in order to ensure profit margins, but this will not only lead to the risk of losing some customers, but also the development of enterprises is particularly painful when most enterprises in the industry choose not to increase prices. Whether it chooses to increase the price or not, its price advantage has been greatly reduced
as the LED display application technology scheme is difficult to be significantly innovated, the price reduction is also relatively moderate, from upstream chips, to packaging, to LED display products. However, the easing of price reduction may lead to a substantial increase in corporate revenue, which is even more difficult
therefore, the "price rise" will accelerate the reshuffle of the LED display industry, and those enterprises that lack innovation will either be cleaned out, or upgrade their products, follow the innovative development route, or be merged by large enterprises. Therefore, under the continuous occurrence of the "price rise" storm, the pressure on small and medium-sized enterprises will further intensify
large enterprises have launched channels, and the second and third tier markets have gradually been occupied.
after more than ten years of development, the LED display industry has basically formed a market pattern. After the waves washed away, several large enterprises with annual sales of more than 1billion yuan have emerged. The rapid intervention of capital has stabilized the pattern of the medium and high-end market, and these enterprises are basically the only players in the medium and high-end field. However, the middle and low-end wholesale market is full of variables and irregularities, which is why it is favored by brand enterprises
in the past year, in addition to the high-profile rise in prices, the distribution channels of large enterprises have also set off an upsurge in the industry. In the past, first-line brand enterprises represented by listed companies continued to make efforts in production lines, channels and brand building. With their accumulated influence over the years and their own strong financial strength, they have the capital to achieve a "large and comprehensive" tensile strength testing machine for thermal insulation strips, which can test and analyze the mechanical properties of various metals, nonmetals and composite materials, covering products, Therefore, the original market share of small and medium-sized enterprises is also eroding. With the big price reduction of large brand enterprises entering the medium and low-end display market, the original enterprises will reduce prices and compete for prices, which will lead to the decline of the profit margin of enterprises
as brand enterprises are more and more similar in product prices, channel layout and services, the countdown to the reshuffle in the field of module wholesale will also be faster and faster
price reduction of leading LED display enterprises is inevitable.
with the price rise of the upstream, the price of raw materials will rise. Under normal circumstances, the price rise of downstream LED display enterprises will also be affected. However, in this year, the price rise of upstream leading enterprises and the price reduction of downstream leading enterprises undoubtedly bring double pressure to small and medium-sized enterprises
obviously, when small and medium-sized enterprises choose to increase prices, the price reduction of large enterprises will make the original price advantage of small and medium-sized enterprises disappear, and under the brand effect of large enterprises, it will further erode the customer base of small and medium-sized enterprises. Even if small and medium-sized enterprises choose not to raise prices and maintain the original price advantage, the originally meager profits will be further compressed. In the fierce market competition, without technical advantages as a support, it is unknown how long they can survive
it can be seen that under the comprehensive situation, the LED display industry will start a new round of bankruptcy in 2017. To survive, small and medium-sized LED screen enterprises need greater investment in supply chain cost optimization, channel and brand innovation in the future, which is different from the past. The ability to innovate, the international marketing network, the optimal management of the supply chain, how to manage the supply chain, ecosystem and products well, not just the manufacturing management well. The product life cycle changes so much, and the price changes constantly, which is a great challenge. However, only by forcing small and medium-sized enterprises to reform, can it really be conducive to the benign development of the industry
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