LED Display Enterprise: From
LED display enterprise: from "price war" to "brand war"
The world LED to see Asia, Asia LED to see China. This is the most real portrayal of the current global LED industry pattern. As an important branch of LED industry, China's LED display industry has successfully LED the world's LED electronic display industry in terms of technology and innovation after years of development. However, while the pace of development is accelerating, the problems faced by China's LED display industry are becoming more and more obvious, such as product homogenization competition, frequent price wars, lack of brands, etc. These adverse factors not only seriously hinder the healthy development of the industry, but also increase the risks of LED display enterprises.
In the face of increasingly fierce international competition, it is particularly important for Chinese LED display enterprises to continue to give full play to their advantages in manufacturing, technology and innovation, highlight the brand influence of "made in China" and the technological innovation power of "made in China", and realize the transformation from "made in China" to "made in China".
Quality is fundamental
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Reviewing the "blowout" development of LED display screens in the past ten years, it is found that the industry of LED display screens in China has been faced with serious structural oversupply, that is, the oversupply of homogeneous products in the middle and lower grades. The weak market demand and industry overcapacity LED display price war is very fierce. Mid-year price cuts have swept through the industry, triggering a massive price war. Industry insiders said the LED display industry in 2015 will face a more difficult situation.
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For large enterprises with capital and scale strength, price reduction is an effective way to occupy the market wantonly, but for most small and medium-sized enterprises, it is forced to participate. Due to the strength and scale of their own enterprises and large enterprises can not be mentioned in the same day, the result is often a heavy loss, loss of interest. Frequent price wars not only severely compress the profit margin of these LED manufacturers, but also further affect the product quality. In order to reduce costs, some enterprises do not hesitate to sacrifice 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, overdrawing the potential and profit space of the future development of the LED industry.
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In recent years, "fire door" caused by quality problems of LED display screen frequently occurs, which brings great risks to personnel safety and customer economy. Obviously, for customers, the quality of the LED display is the most important. Therefore, if LED display enterprises want to achieve real healthy and rapid development, it is fundamentally their own technological innovation, research and development of more competitive products to return to the market, to form a well-known LED display brand, can really seize the market.
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China LED industry crisis and machine coexist, but blindly price war will only let the enterprise only dangerous, lost opportunity! At present, it is very common to fight the price war with low-end and inferior products in the industry. For leading enterprises in the industry, they have the responsibility and obligation to maintain the competition rules of the industry and provide customers with low-priced and high-quality products on the premise of guaranteeing the quality of products.
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On the other hand, the market does not reject the decrease of production cost brought by the advantage of scale, which naturally leads to the decrease of product price. For example, some large LED display enterprises have reached a certain scale and have certain technical strength to expand the market, so the price reduction has become a breakthrough to open the market.
Brand is the direction
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Quality is the fundamental, brand is the direction. In a sense, China has now entered the era of brand economy, in the field of LED display, brand influence can not be ignored.
Brand is the soft power of enterprises, but also the core competitiveness of enterprises. In the past two years, the continuous price war in LED display industry is not only lowering the gross profit rate, but also rapidly eliminating smaller LED display enterprises. Only brand can bring added value to enterprises. From the group of LED display screens that have failed in recent years, it is not difficult to see that the enterprises that quit are often those whose products lack characteristics and whose brand features are not obvious. However, the enterprises that have stood firm through ups and downs are those whose brands are deeply rooted in people's hearts and whose products and services are distinctive. Brand is equivalent to the name card of an enterprise or a product, which has inestimable potential value and needs long-term investment and persistence to establish. It is the purpose of an enterprise to settle down and establish itself, and also the competitiveness of an enterprise to sustainable development.
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In today's international LED display market, it is difficult to see Chinese brands. Most Chinese LED companies are OEM for international brands. At present, Chinese LED display enterprises are struggling on the road of brand, and the lack of enterprise brand has become an obstacle for Chinese enterprises to compete in the international market. The influence of "made in China" and the innovation ability of "made in China" should be reflected from the brand, which is also the problem that the LED display industry should think about at present.
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"Many domestic cars are doing well, but they still can't compete with BMW and Mercedes. This is the brand effect." Guan jizhong, President of LED display application branch of China optical optoelectronics industry association, said that low price competition will be maintained for a long time and enterprises should enhance their influence with their own brand and technological innovation.
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In the past two years, downward pressure on the global economy has increased, and the Chinese economy has entered a new normal. In addition, China's demographic dividend will slowly disappear in 3-5 years, and cost advantage is no longer the capital "made in China" can boast. At the same time, with the advent of industry 4.0 era, the traditional manufacturing industry will face an even more embarrassing situation. To complete the magnificent transformation from "made in China" to "created in China", LED display enterprises are required to carry out transformation and upgrading driven by innovation, abandon the previous survival mode of blindly competing for low prices and vicious competition, and at the same time strengthen the construction of Chinese independent brands and enhance the comprehensive competitive strength.
Competition and cooperation is the future
In terms of brand construction, Chinese LED display enterprises should cooperate to jointly build Chinese brands. "In this respect, we need to learn from Japanese companies to jointly build brands and seize the world market. When a brand is established, people should support each other and cooperate with each other." The so-called "competition and cooperation" refers to the full global competition based on cooperation. Compared with the competitive era, the characteristics of zui in the competitive era are win-win, the combination of the strong and the strong, mutual learning from each other, effective resource integration and make up for their own weaknesses and shortcomings, while strengthening the overall strength through the advantages of scale. At present, the market order is seriously affected by disordered competition and price war caused by excess capacity, homogenization of products, and lack of innovation consciousness. The differentiation route of LED enterprises is seriously hindered, and at the same time, they are faced with fierce market competition. In order to effectively avoid the risk of industry reshuffle, merger and integration, as an effective means to rapidly expand the scale of enterprises, enhance brand influence and increase profits, is gradually favored by major LED enterprises.
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Whether it is merger, acquisition, alliance or joint venture, taking the road of cooperation or taking the road of co-opetition is a development direction of Chinese LED display enterprises. At present, LED industry overcapacity, homogenization phenomenon is very serious. In the fierce market competition environment, small and medium-sized LED enterprises are faced with the risk of capital chain rupture. For small and medium-sized LED enterprises, they can consider group heating to establish a strategic alliance, not only to enhance competitiveness but also to resist risks, and make use of their advantages such as strong resources to complement and cooperate, and strive to achieve a win-win situation.
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In addition, the strength of large LED enterprises can annex small LED enterprises, taking advantage of the brand strategy, such as the acquisition of a homogeneous product cost control level of the second-line brand LED enterprises, using cost advantage to follow up the opponent's price, implementation of counterattack, but also can be regarded as an alternative strategy.
At present, China's LED industry is in the stage of rapid internationalization, and the competition among LED enterprises has gradually shifted to the comprehensive advantage competition which is LED by brand and based on strategic priority, technological innovation and management. Brand competitiveness reflects the core competitiveness of LED enterprises, which is directly related to the profit and future development prospects of LED enterprises.
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From "price war" to "brand war", from "made in China" to "think tank" made in China, the LED industry has a long way to go, LED display Chinese companies want to keep pace with The Times, increase the product technology research and development, improve product quality, focus on brand building, to foster brand with independent intellectual property rights of LED display