Price war play thin profit LED screen transition or stick?

The first half of 2013, the LED display enterprises, can be said to be mixed with half: one is the full color LED large screen display market acceptance is more and more high, downtown streets slightly can see its shadow; on the other hand, LED display profits and market transactions instead of linear decline.

Market continues to grow

According to the general manager of Fujian province LED industrial technology innovation alliance, general manager of crystal color photoelectric Co., Ltd. yellow water bridge, in recent years, LED display market sales increased by 10%~20%. With the recognition of the effect of the promotion of the big screen LED, this value may also be improved.

Data show that in 2012, China's commercial display market (including single screen display and flat stitching products, referred to as MNT) to maintain a relatively rapid growth rate. 2012 China commercial display market sales of 182 thousand units, an increase of about 20%, sales of $3 billion 320 million. Education, health care, intelligent transportation, urban security, video conferencing, etc., have become the most important commercial display market.

Price war thin profit

However, the rapid occupation of the market in the LED screen at the same time, one can not ignore the pain has surfaced. "Now the profit of LED display is about 10%. Sometimes in order to compete for a project, about 5% of the gross profit margins are willing to do. A representative of a representative of the display business sigh told reporters.

It is understood that in the past two years, the highest profit in the terminal display project remained at 10%~15%. Channels to maintain 8%~10%, some 5% of the profits are not. There have been market research institutions have done statistics: display to do more than 100 million yuan of the country's enterprises have more than more than and 40, while net profit of up to 10% of the enterprises are not many.

Early blind investment to the industry has a great impact, due to the lack of quality and quality, blindly reduce costs, resulting in the entire industry market is very confusing. "Yellow River Bridge said. According to its introduction, 2006~2008 3 years, is the peak of the LED display profit, when the highest profit can reach 30%~50%. It is also in this period, many manufacturers have joined the ranks of the LED display production army. At present, China's LED display capacity in excess of the basic state, the inevitable price war.

Because the competition is very fierce, customer demand is also very strong, and some even asked him to do the first free screen, and so on with the advertising revenue and then divided into payment. The industry complained that the market is now more and more difficult to do, looking at the big LED advertising screen on the street a lot, but in fact, many are in the form of advertising for the screen, the establishment of the. In other words, LED screen manufacturers and advertising media companies to cooperate, by the LED manufacturers to invest in the construction of the first screen, and then to the advertising income or payment of advertising is divided into. This way to build a screen looks profitable, but in fact most of the cost of the risk fell to the head of the LED screen manufacturers.

At present, this' advertising for the screen 'business model can not really make money. If the LED electronic screen can not bring profits to the advertising media company, or LED display quality problems, LED display enterprises there will not loss. Industry frankly.

Transformation: cross-border or stick?

Faced with various difficulties in the LED display market, LED display manufacturers have begun to consider the transformation. Some manufacturers will be cast in the eyes of the future is bright LED lighting industry, like Quanzhou's Ted optoelectronics, color bright and so on to the main LED display manufacturers, are more or less involved in the field of LED lighting.

But the industry in this transformation expressed some concerns, "LED lighting needs a lot of capital and technology as the support transformation display enterprise, not all of the lighting business transformation can be successful, blind transformation will only bring greater risk to the enterprise. "Water bridge is said to the financing difficulties of small and medium-sized enterprises, lighting channels may be the constraints in the short board. "Display industry marketing model is mainly based on the project, and LED lighting needs to re expand the distributor or dealer channels. Many companies are busy with the transformation of the display LED lighting business, but in fact, they do not have a good marketing channels, and even the general direction of the channel are ambiguous.

In fact, there is still a large market for LED display. "Yellow River bridge gave away the current domestic LED display low profit situation: at present the LED display low profit is to display the routine. It is understood that a lot of companies just voted hundreds of thousands or millions of yuan will begin to produce the display, but because of technical limitations, most companies can only do some conventional products, which is part of the natural competition in the market.

With the expansion of subdivision applications, especially the stage decoration, in recent years the demand of LED display is more and more big, the display and installation structure put forward higher requirements. It is understood that the current display is moving in two directions, one is bigger, one is doing precision.

For example, more than 1000 square meters of large screen, the current domestic manufacturers can do this kind of number. The high definition display, is represent the general trend of the market, such as high-end stage design stage, cannot do without the high clear LED display. This kind of high-end display price is rising, the profit margin is higher than the ordinary display.