It is understood that Chip Optoelectronics has been deeply involved in the LED display industry for 14 years. What kind of driving force spurs it to "remain young forever" in the fierce competition? At the 10th Guangzhou International LED Exhibition held recently, China LED Network had the privilege of interviewing Mr. Wu Xiaogang, general manager of Chip Optoelectronics, and asked him to talk about the way to survive as a company.
Focus on outdoor LED displays and focus on cost-effectiveness
As a "resident guest" at the Guangzhou Exhibition, Chip Optoelectronics continues to follow the simplicity and stability of the past. The main body of the booth is based on green, which coincides with "green environmental protection". Its exhibited products, such as P4 indoor high-density drawn aluminum cabinet, P6.67 second-generation Great White Shark outdoor cast aluminum cabinet, and P6.25 curved screen, have won the favor of many customers at home and abroad for their stable product performance and differentiated competitive advantages.
Wu Xiaogang introduced to China LED Network, "These products have been sold to customers one after another in 2013. Our company's positioning is mainly in LED outdoor displays, and also takes into account indoors. The ratio of outdoor to indoor is 8:2. In the past year, the share of LED displays in the outdoor application market has shown a growth trend, and we have expanded by 40% at the end of last year. Outdoor production capacity. At the same time, Chip Optoelectronics also pays more attention to small spacing, but will focus on outdoor small spacing screens, such as direct plug-in small spacing. We have achieved 6.67, and the current densest outdoor mass production pitch is 5.33. It is expected that the industry's outdoor small spacing will reach between 4 and 5 this year, and it will become increasingly dense. We will also launch a series of outdoor high-density small spacing LED display products. Bringing customers a better display experience.”
Currently, more and more companies are entering the LED field, but the market demand has not been fully released. Facing fierce market competition, what are the advantages of Chip Optoelectronics? Wu Xiaogang believes that "our advantage is reflected in our positioning. We have certain advantages in the cost-effectiveness of outdoor displays. In terms of quality and price, Qipu products are positioned in the mid-to-high end. Compared with products with low price tags and unguaranteed quality, Qipu products have quality advantages; compared with world-class and expensive products, Qipu products have price advantages and are more cost-effective. In addition, we attach great importance to innovation, and our innovations are based on the product itself. We have 1- 2 invention patents, this is the company's goal. In the past few years, we have basically completed this plan, so we now have 6 invention patents, and there are 10 in total in batches. Our characteristic is that our invention patents are deeply integrated with our products. It is not a certificate display, but is indeed linked to the production, sales, and company's development strategy of our products. For example, our two invention patents, dual maintenance and hollow screen, are national invention patents. It has been used in products sold and has had a certain impact on the market. "
Live within one’s means, be down-to-earth, and advance steadily
When talking about the development trend of LED display screens in 2014, Wu Xiaogang believes that from the exhibition situation, the LED exhibits are very beautiful, and the technology has also made certain progress. The number of exhibiting manufacturers is increasing and their strength is getting stronger. The development of LED display screens will become more and more prosperous. LED displays will move towards digitalization and wirelessness, and the market demand for outdoor LED displays will also grow accordingly. In addition, it is worth noting that LED outdoor creative decoration is also a potential market worth exploring in the future. For example, there are some creative architectural designs that can wrap up the entire building and integrate the LED display with the building. The building after being packaged with an LED display screen is an advertising screen, which can display pictures, promote publicity, and beautify the city. The future prospects of this type of creative decoration market are promising.
At the same time, price wars will become more intense in 2014. Currently, conventional indoor finished products have negative profits for many companies. They are just maintaining sales and increasing revenue without increasing profits is a common phenomenon. 2014, 2015, and even 2016 should be a period of consolidation in the LED industry. As the various risks of manufacturing plants and doing business expand, the threshold becomes higher and higher, and industry competition intensifies. Some companies will be overwhelmed and choose to exit, while others will be merged. Qipu will continue to focus on quality, focus on outdoor big brands and outdoor small spacing, insist on living within its means, steadily promote external sales, and at the same time speed up the localization process and let local dealers do local things. In overseas markets, foreign employees will be hired to operate regional markets.
For more than ten years, Chip Optoelectronics has established a firm foothold in the field of LED display screens and continued to grow and develop with its business philosophy of "paying attention to demand and persisting in innovation". Along the way, Chip Optoelectronics has been down-to-earth, step by step, low-key but without losing its personality. I believe that by adhering to a rigorous and down-to-earth style, Chip Optoelectronics will go further.
Editor’s opinion:
With the increase in market demand, the traditional extensive business model is no longer able to promote the development of the LED display industry. If LED display companies want to maintain stable growth, they must take a refined route, refine market applications, and specialize in the industry. In addition, the provision of specialized solutions can also add value to the original screen, helping LED display manufacturers to exert their differentiated competitive advantages.
ANNA