Analysis on the pressure of LED display screen in the capital chain

October '' junduoli event 'seems to be a crisis in the domestic LED industry to detonate the fuse, a time LED has become the focus of domestic major media.

LED display large corporate capital investment, a project requires more than ten million, millions, or even tens of millions of investment, and sometimes often need to withdraw funds from time to time. Small and medium enterprises because there is no strong financial support, with the money to do the project, and once the project is not much profit, it can not fill the supplier's debt. We show the general manager Shi Guoguang told reporters frankly, more short-term behavior of the LED enterprise, the government will also win LED too high, buried a lot of risk.

On the other hand, due to competition in the industry, some companies will be very low price pressure. At present, the gross profit of domestic LED display enterprises is generally maintained at 15-20%. Shi Guoguang said: 'now LED display has been the end of the profits, the enterprise to maintain the normal operation of at least 30% of gross profit. '

At present, Shenzhen has thousands of small and medium enterprises like LED, junduoli, bolunteguang such enterprises are just the tip of the iceberg. Compared with last year's explosive growth in performance, LED display sales this year showed an increase - plummeted - dull trend. Former fiery LED display industry, and now the cold winter has come, especially small and medium enterprises began to face serious pressure on the survival of the display.

'zero down payment' effect is not as good as expected

July 2010, Abison Au Optronics Co (hereinafter referred to as' Abison ') in the domestic display industry pioneered the' zero down payment 'mode, once set off a wave with the industry. But recently, the reporter field survey to understand, this mode has many risks, and for more than a year in the industry have little effect, some enterprises display 'zero Shoufu' mode of overall sales sales accounted for only 2-3%.

According to the reporter, LED display is a kind of electronic engineering products, different from the daily mass consumer goods. According to Abison, deputy general manager of the introduction, zero down payment is to allow customers to look at the screen, and then sign a contract, such as customer acceptance after receiving the goods can also be paid in installments on the basis of. At the same time, customers in the next 7 days can also choose to return.

Industry sources, this zero down payment mode also buried a lot of risks. Many industry insiders said, LED display industry is mature, the market competition is very fierce, zero down payment is just a marketing tool.

First of all, zero down payment is for a small number of customer groups, not all customers can adopt this model; second, the use of zero down payment model must be to improve product prices to ensure operating costs. Therefore, not only requires customers need to have a good reputation, but also have strong financial strength as a support.

According to the reporter, the domestic zero down payment models are generally government projects, while in foreign countries are generally large enterprises and large consortia. In any case, this model is a challenge to the enterprise's customer research capabilities. As a production-oriented enterprises, there are a lot of people for the strength of the enterprise customer survey raised questions.

Not only is the challenge of research strength, zero down payment model for product quality also put forward higher requirements. If the quality is not good, so enterprises must pay for the display, because in a certain period of time within the next, if the quality is not good, the customer may terminate the payment at any time ', according to an industry insiders told reporters, he believes that the zero Shoufu mode and early LED lamp enterprises EMC model is similar.

EMC model is the enterprise to bear the cost of installation, the user will save electricity as a product cost installment. The first two years, due to the prevalence of domestic LED Street quality is not the case, many companies have adopted this model losses, fiasco. Similarly, zero down payment is also required to pay for the quality of the enterprise. According to the reporter's investigation, the current domestic LED display is still a lot of black screen, such as the quality of the screen does not pass the problem.

Unlike the EMC model, the risk of zero down payment is also reflected in the 'tailored''. Because the current LED display terminal project is tailored to customers due to control of the initiative, once made a return, then the display enterprises must be tailored for the screen, and on the other hand display business it is difficult in a short period of time to find the same requirements of customers.

According to the reporter, zero down payment on the company's financial strength and inventory management are put forward higher requirements. Ren Yonghong in an interview with reporters, said: 'zero down payment also increased the challenge of our company, to speed up the delivery and production cycle, which is a major challenge for our internal management. "According to a brokerage investment banking official said:" zero Shoufu mode because enterprises will display the gross profit for the impact of IPO elevation, so many listed companies often display crustily skin of head, take the risk to do. '