LED display overall rise, but still need to learn to avoid risks

With the development of technology and market, China's LED display industry will gradually improve in the adjustment and have a reasonable division of labor to form a new industrial pattern. In the overall industrial chain, the formation of leading enterprises in LED device production and key enterprises in display product production will redefine the division of labor between upstream and downstream industries and highlight the specialized division of labor and cooperation. 2014 is an extremely heroic year for LED display screens. How to avoid risks and gain a long-term foothold in the market is the key. By the end of August, LED display screen listed companies had successively completed the performance reports for the first half of 2014. The reports showed that all related companies were in a profitable state, and some of them even achieved double-fold performance growth, ended the slowdown in the growth of the LED display market in the past two years. Although the overall prosperity of the LED screen market has improved, many potential risks still exist objectively. How to avoid risks, companies have their own tricks. A bigger cake means more opponents. In the 2014 S, LED display screen market has recovered rapidly driven by major events such as the World Cup. LED enterprises have not only won many large domestic orders, it is also a wave of LED screens in overseas markets represented by Europe and the United States. In addition, driven by small-pitch LED screens, large-scale applications in the indoor industry have also successfully helped related companies to make profits. But good market prospects will also attract more competitors. Coupled with the promotion of industrial policies, more capital will enter the LED industry in the future. However, at present, the concentration of the domestic LED screen industry is not high, the market share is relatively scattered, and the problem of product homogenization is prominent, and the anti-risk ability of enterprises is worrying. Once a large amount of external capital is injected, the current loose brand pattern will easily disintegrate, and the industry reshuffle is inevitable. Profits decline or endanger the survival of enterprises, as we all know, LED industry technology updates quickly, raw material prices continue to fall, resulting in a downward trend in product prices. In the future, with the injection of more capital and the centralized release of more production capacity, a more intense competition situation will be formed. The domestic market environment with price war practices will eventually lead to the decline of the profitability of enterprises, even threaten the survival of enterprises. Differentiated development enhances the ability to resist risks. Facing the market risks of homogenization and low profits, LED display screen enterprises actively explore new profit growth points and profit models. Enterprises represented by Elijah and Zhou Ming have tried to carry out technological innovation to the end. In view of the small-pitch LED display screen with high industry heat and high profit margin, various enterprises have continuously increased their R & D investment. After the advent of the 8mm-inch small-pitch LED display, Liad launched 0. At the end of August. 7mm small-pitch products effectively improve the ability of high-density small-pitch products to compete with DLP, liquid crystal splicing and other technologies, and promote the development of small-pitch LED screens into indoor applications. The enterprises represented by Lianjian optoelectronics have changed their development ideas and actively explored the comprehensive media network management strategy of LED display hardware media advertising software. Among the profits of Lianjian Optronics in the first half of the year, the newly acquired time-sharing media and its own linkage culture, two enterprises with media business as the main body, achieved a net profit of nearly 30 million yuan, which became the carriage driving the company's profits. The company also regards products and services as a differentiated competitive strategy, and integrates high-quality media resources with a group business model to create a national outdoor communication brand. The LED display market continues to heat up, bringing both opportunities and challenges. Facing the increasingly fierce market competition, LED display enterprises have made great moves to explore the way for their survival and development. At the same time, it also brings a signal to the market: the industry reshuffle is inevitable, and enterprises need to look far ahead and find a correct position in order to effectively cope with the upcoming industry tide.