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How LED companies win in the highly integrated LED industry

2019/11/09
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In 2019, the LED display market is volatile. Due to the impact of the entire economic environment, the situation of the LED industry is also very difficult. At the same time, competition within the industry is becoming increasingly fierce. Market developments also change frequently. It is foreseeable that in the next few years, industry resource integration, passive or active corporate mergers and acquisitions, and increased brand concentration will bring significant adjustments to the LED display industry. Only companies with technological, channel and scale advantages can win in the competition.




Today, the LED display industry is facing many problems, such as the reduction of dividends at the national and government levels, and the differentiation of import and export tariffs, which will change the purchasing plans and relocation decisions of many LED display manufacturers. Besides, the uncertainty of the LED industry will curb market demand. Also, although mini LEDs and micro LEDs are becoming new growth points, the traditional display market continues to fall. With the fierce competition in the LED display industry, the integration of the upstream and downstream industry chains in the entire industry has accelerated, and the market concentration has gradually increased.




The LED display industry is undergoing varying degrees of transformation and global industrial chain integration. M & A in the LED display industry continues. Mergers and acquisitions can enable enterprises to obtain superior technology and resources, thereby increasing production scale, reducing production costs, and strengthening market development efforts. In addition, the leading companies in the LED industry have reliable technology and capital reserves. This strong capital reserve can be used for technology research and development, investment in production equipment, strengthening corporate capabilities, integrating many excellent supplier resources, and creating a better quality industrial chain. In the process, some small companies will inevitably lose part of their sales share. But this does not mean that these small companies will calm the market. This will encourage the current LED display companies to pay more attention to the optimization of enterprise production and the effective integration of resources.




Under the conditions of new policies, new situations, new opportunities and new challenges, seeking high-margin market segments will become the main development direction for many companies. Brands are also continuously concentrated in market segments such as transparent screens and rental screens. Some great screen companies continue to stand out. With strong technical advantages, they still maintain a stable market share, even in the context of a declining market environment. These companies have always focused on a certain market segment and become representatives and leaders in the field.




Last but not least, building your business ecosystem is becoming increasingly important. In this process, the biggest challenge is how to balance and maintain the relationships and interests of suppliers, partners, customers and other industrial chains. It also needs to obtain superior resources from outside and then integrate. To do this, building an open cooperation platform is a bigger path than a win-win situation. Only in this way can LED screen companies create strong competitive strength, and ultimately create higher value for customers and win a broader market.


terry.z@esdled.com
cneisign
+31 887700940