China's LED display slowdown in direct selling model into the mainstream

Present LED display has been widely used in advertising media, sports venues, theatrical performances and other fields, has become the most mature one market for domestic LED applications.

Engineering LED Industry Institute data show that, although the 2011 LED display output value reached 21 billion 900 million yuan, but the market growth rate has gradually slowed, the fierce market competition, resulting in the LED display market prices fall.

LED Engineering Institute believes that although the LED display industry has not yet appeared several manufacturers in the monopolistic market, but with the brand advantage of individual manufacturers fermentation, LED display orders tend to be more and more large manufacturers, the market is gradually formed aggregation effect, the industry began to enter the bigger market pattern.

LED display output growth slowed

LED Engineering Research Institute of statistics, 2011 China LED display output value reached 21 billion 900 million yuan, an increase of 18%. Compared to 54% growth in 2010, has been significantly reduced.

The main reason which is the rapid popularization of the LED display to the LED display market from the rapid growth into maturity, the future growth rate will gradually stabilize. LED Institute of engineering is expected from 2012 to 2015, LED display market will maintain an annual growth rate of about 10%-20%.

Accompanied by the market slowdown, LED display price competition will be more intense, but the overall price decline of LED display will be a key factor in the expansion of market capacity.

From 2010 to 2011, both outdoor and semi outdoor or indoor in monochrome, two-color, full-color LED display in the continued price cuts, the overall reduction in 18~20%.

The low-end LED display price fell more than 30% of the most prominent; high-end LED panel prices fell by an average 10%, the highest decline did not exceed 13%.

LED Engineering Research Institute survey showed that fell sharply compared to the upper and middle reaches of the price of LED chips, LED display products price decline or allows manufacturers to accept.

So from 2010 to 2011 LED display manufacturer's product gross margin decline, but the company's business income and product sales are still growing.

LED Engineering Institute is expected 2012 LED display price range will reach more than 15%. In the future development of the market, LED display price decline in the market pull effect will become more apparent, will be more than LED screen technology progress pull effect.

: direct sales model into the mainstream

Present LED display manufacturers are mainly two kinds of modes: channel sales and direct sales. From the perspective of gross profit margin, the gross profit margin of direct sales channels to higher than the gross profit margin.

Therefore, domestic LED display manufacturers are faced with a choice: to control the market or product gross margin control. This is also a direct result of the development of LED display manufacturers different routes. To market the LED display manufacturers to take the channel, to keep the gross margin of the manufacturers go direct.