Domestic LED screen cost advantage to enhance the competitiveness of the international market

It is estimated that in 2012 the domestic LED display industry market growth rate has dropped to about 10%, is expected to 2013-2015 LED display industry growth will remain low in 10%-20%. But compared to exports to maintain a relatively high growth rate. Data from various companies is not difficult to find, although the overall growth has slowed, but the export situation is significantly better than the domestic situation. The sales income in 2012, Lehman photoelectric Alto electronics, Riyadh three enterprises growth rate is greater than 30%, while most of the domestic enterprise business sales growth remained at between -10% to 10%.

Through the in-depth exploration of the industrial chain, we can easily find that export-oriented enterprises benefit from the cost advantage of LED, the development of technology and the broad market space of three factors, the future growth is still good. LED display has the cost advantage, the enterprise overseas market development space is broad, the display technology welcome the new development, the product moves toward the light, the energy conservation, the special shape direction development.

LED display with cost advantage

From the LED display industry, domestic enterprises have a certain cost advantage compared to foreign enterprises. At present, the domestic LED display price is about 30%-50% of similar foreign products, but still can maintain a better gross margin, mainly due to the domestic basic material prices and VAT refund policy. These two factors make the cost of domestic LED display is about 30% of the cost of foreign LED display, low cost greatly improve the competitiveness of domestic products.

At the same time, the use of domestic lamps also significantly down the cost. From the cost structure of the domestic LED display, which accounted for the largest LED lamp, accounting for 39%. Domestic enterprises are using domestic LED display tube, or self packaging, LED lamp, and buck, and other foreign enterprises by Daktronics international manufacturers (Nichia, CREE) lamp. Data show that the domestic price of about LED lamp for international manufacturers of 1/3, if other costs at home and abroad are the same, is only due to the domestic lamp price, domestic display cost is relatively low about 44% international manufacturers.

In addition, the average wage is about 7 times of China, if the assumption that other costs remain unchanged, only labor costs, the overall cost of domestic display is lower than foreign countries by 17%. The empty box, steel frame, PCB board and other products at home and abroad, the price gap is larger, coupled with the overall design costs, considering the cost of domestic products is about 30%-50% of foreign products. Domestic exports of LED display will enjoy 17% VAT refund, it is estimated that government support will further reduce costs.

The domestic market is limited, the vast overseas market

At present, the domestic and foreign enterprise technology level has been basically quite. From the terminal customers and downstream applications, Abison, photoelectric, Lehman photoelectric, Chau Ming technology were to undertake a large project more. From the exhibition to the sports center, and then to the bird's nest and World Expo display screen, it can be said that the domestic and foreign manufacturers LED display although there is a certain gap; but in addition to the ultra high-end products, the domestic LED lamp can reach the requirements of display.

In addition, LED display about 60 billion yuan of export space is sufficient to support the rapid development of enterprises. From the market scale, in 2013 the global LED display market size of $13 billion 700 million, about 3 times more than the domestic market. In the future, the domestic LED company by virtue of the high cost of products, export business will be rapid development.