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LED show industry slowdown will dig deep market segments

LED display demand slowdown has become an open fact, the major manufacturers positioning segment market to seek a breakthrough.

"Display market demand for 10%-20% growth every year, but in recent years, growth is indeed slowing down, which is a normal phenomenon. Zhou Jianhong, deputy general manager of Konka video believes that, like the United States, Dakota, Barker's performance growth in recent years are more stable. Each industry is someone to eat some meat soup, in the middle of the scale of the future will be more sad. But the industry as long as we dig in a particular market segments, live there should not be too much problem.

With the continuous decline in the price of LED display, some of the new market segments seem to rise rapidly.

The evening of December 6th, KingSun (002638.SZ) announcement, a wholly owned subsidiary of Qinshang semiconductor recently and Hebei Shennong Network Services Limited signed business cooperation agreement, the purchase of LED advertising screen and related cooperation to the ground network protocol agreement semiconductor Shennong gold, about 99 million 480 thousand yuan.

Zhou Jianhong believes that the first tier cities after years of development has been saturated in some places, coupled with some restrictions on the government, demand growth will slow down. Channel sink to three or four cities and even rural areas is a trend, after all, now more and more cheap display. Some small places can not afford to use the screen before, and now can be used.

Wu Meng Chau Ming technology LED display market director also agree with the views of Zhou Jianhong, he believes that the rural market demand at present, including Tibet, Inner Mongolia, the economy is relatively underdeveloped area now demand is there, but they may have some requirements on the quality of different. For example, in rural areas of quality requirements are not too high, but the Tibet northern region in the arctic weather display requirements on startup parameters such as the market entry is still relatively small, after all, the product quality requirement is very high. He estimated that the future will certainly increase in the two or three line of the city, the growth rate is certainly more than 30%, and even the possibility of 50%, 80%.

In addition to the emerging markets this year, Chau Ming Technology bid for Honda 4S shop, retop and Wanda cooperation, Konka video bid Shenzhen airport terminal T3 and a single frequency, seems to presage a new round of LED display in the field of commercial battle has just begun.

As the first began to explore the small pitch LED display technology manufacturers, 2013 Riyadh (300296.SZ) won the bid for multiple CCTV studio background wall project, has been fully proved the company's products have been authorized users, to high-end users of radio and television industry promotion conditions. At this point, the company acquired the main purpose of the Internet is to reach the company's new products - LED small spacing TV industry to promote the rapid broadcasting.

Zhou Jianhong believes that over the past few years, the display of public bidding projects accounted for more than in recent years, advertising companies, real estate and commercial institutions gradually become a large tender. They display technology and quality requirements are very high, generally small and medium enterprises technical ability is not difficult to win the bid. As a veteran of listed companies, but focus on the quality of Konka video but not too much emphasis on the number, they would like to undertake such a large project.

But Wu Meng was the opposite attitude, he thinks the screen tender still has a considerable part of government behavior, the government demand this year has a certain stagnation, have a certain impact on the domestic market, the state of science and technology business, is expected to start will restart. But this year, overseas market growth is expected to be 30%, so the overall performance of the last year and probably the same.

Like 4S stores, airports are niche market, the amount will not be too large. Now the development of commercial real estate developers all by the cooperation with the European high-end leasing companies do, but it is always only part of the whole market. Wu Meng believes that next year the market will focus on high-end leasing and high-density products, the company will focus on the development of this market fire.

At present, many domestic enterprises are subject to the influence of overseas brands and sales, quality and other issues, the development of the bottleneck period. Although the world has a market, but still in Europe and the United States market, the competition is very fierce.

Each display manufacturers began to find their own positioning, dig deep market segments.

This includes a single and double color started this year with a low price full-color display in the market sudden emergence of the powerful giant color company in Fujian, the rapid formation of the market to share the attitude.

At the same time, each LED display leading enterprises in the high-end market territory has become increasingly evident. For example, although the media business has been developing smoothly but not always adhere to the joint construction of photovoltaic market, specializing in high density big hit "LED TV" concept in key financial institutions, Riyadh, stadium, outdoor display Alto electronics, focusing on high density display, high-end rental, Chau Ming technology.

At press time ago, suspended for 2 months for the construction of photovoltaic (300269.SZ) announcement that intends to issue of shares and cash to acquire 100% equity interest in the media outdoor advertising media agency, relying on its own LED display manufacturing and sales business advantage, downstream advertising industry extension.

Unfortunately, they still can not reach the absolute right to speak, like the United States, Dakota, in the industry, at any time there is uncertainty about the impact of market share of smes.

From the current point of view, the market demand in the field of outdoor advertising is still the largest, the surface appears to be the competition between enterprises in the display screen is the king of the struggle, who can

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