How can LED Full Color Display Screen Manufacturers break through the Tight Encirclement of Overcapacity

21/04/2020

In recent years, the strong momentum of LED full-color display industry has become the second largest field of LED full-color display industry after LED indicator light.

In 2014, the global LED market reached US $9.6 billion, including displays and other backlight products. It is predicted that the global market demand for LED display will maintain a rapid growth of more than 20% in the next five years, and the global market size of LED display will reach 30 billion US dollars by 2020. On the other hand, China is also the most important manufacturing base in the world LED full color display market. In 2014, Guangdong Province alone exported 14.433 billion yuan of LED full color display screens and other backlight products, up 30.58% year on year.

When seeing these big data, many people's LED full-color display may have a good prospect. I don't know that over production has become a major obstacle to the LED display industry, but what are the reasons for over use of LED displays?

Fake low price promotion

Good things are always attractive. Led full-color display is a new industry advocated by the state, but most of them "eat crabs first" did not taste the sweetness, but became the pioneer on the road.

LED full color display industry access threshold is very low, many small and small seminar companies can also easily access. However, these enterprises that only aim at "one share" have no leading technology research and development. They are facing the pressure of fierce market competition and rising cost of raw materials. Only the competition brought by quality sacrifice can rely on price war. The disordered entry and low-end competition make the whole LED full-color display market chaotic and difficult to manage.

 In fact, the follow-up price of led enterprises benefits from the active support of national and local autonomous groups.In 2009, six departments including the national development and Reform Commission jointly issued the opinions on the development of semiconductor lighting energy saving industry. In the same year, semiconductor lighting application Fancheng was released. In May 2011, Guangzhou and November 2011, the national development and Reform Commission announced the "phase out of incandescent lamp roadmap". On February 24, 2012, the bride announced the 12th Five Year Plan for the development of integrated circuit industry. Local autonomous groups also have great enthusiasm for LED full-color display industry, invested a huge amount of money, and implemented preferential policies for LED full-color display industry in land, tax, technology development, talent introduction, equipment purchase and many other aspects.

In addition, the subsidy policy has attracted many people, including LED full-color display industry, the Ministry of Finance and other three departments began to bid for the expansion project of financial subsidies for LED products in 2012, using four kinds of indoor and outdoor LED lighting products and indirect subsidies. According to people familiar with the matter, the proportion of subsidy is about 30% of the purchase price, and the total amount will reach hundreds of millions. LED will be effectively used for lighting, especially for a large number of users.

Facing the problem of overproduction, how can LED screen enterprises break through the encirclement?

First, we will accelerate structural adjustment and the transformation of development patterns. Adjust the industrial and product structure, actively develop the ability to adapt to the market demand, change from expanding the scale to paying attention to quality interests, and improve the overall development level of the industry.

Second, give full play to the guidance and inhibition of plans, policies and standards, strictly enforce access conditions, strengthen industrial access management, improve industrial monitoring system and overcapacity early warning system, and strengthen and improve industrial management.

The low threshold of LED full-color display industry has led to a large amount of capital inflows in the past few years, resulting in oversupply and a sharp drop in gross profit at both ends of the industrial chain, and many suppliers are facing loss or scrap. According to incomplete statistics, 4000 led enterprises disappeared in the market in 2015. In 2016, as the supply and demand of LED full-color display industry eased, over production will become more obvious. After rectifying the industry competition mechanism and improving the industry standard, most of the LED enterprises will be at stake.

Finally, we should promote the merger and reorganization of the industrial chain and speed up the exit process of "inferior" enterprises.

"Poor" enterprises occupy a large number of social resources, but fail to create corresponding social value. Accelerating the merger and reorganization of such enterprises can effectively ensure the social resources occupied, and at the same time maximize the social value of the advantageous enterprises: the high-tech, productivity and management level of the advantageous enterprises promote the orderly development of the whole LED full-color display industry. At the same time, effective merger and reorganization can fundamentally balance the supply-demand relationship of the market and lead the market to the direction of industrial development.

Overcapacity is a double-edged sword. Overcapacity will lead to a series of problems, such as price war, enterprise bankruptcy and so on. Excess capacity will also overshadow medium and low-cost enterprises, and enterprises with poor quality and capacity will gradually withdraw from the market and eventually leave large enterprises with strong strength.

Big waves sweep the sand, and the strong stay by themselves. Led full-color display industry is facing the problem of overproduction. We must further strengthen our own technology, continuous reform and innovation, and enhance our own strength to resist the storm.

In fact, the follow-up price of led enterprises benefits from the active support of national and local autonomous groups.

In 2009, six departments including the national development and Reform Commission jointly issued the opinions on the development of semiconductor lighting energy saving industry. In the same year, semiconductor lighting application Fancheng was released. In May 2011, Guangzhou and November 2011, the national development and Reform Commission announced the "phase out of incandescent lamp roadmap". On February 24, 2012, the bride announced the 12th Five Year Plan for the development of integrated circuit industry. Local autonomous groups also have great enthusiasm for LED full-color display industry, invested a huge amount of money, and implemented preferential policies for LED full-color display industry in land, tax, technology development, talent introduction, equipment purchase and many other aspects.

In addition, the subsidy policy has attracted many people, including LED full-color display industry, the Ministry of Finance and other three departments began to bid for the expansion project of financial subsidies for LED products in 2012, using four kinds of indoor and outdoor LED lighting products and indirect subsidies. According to people familiar with the matter, the proportion of subsidy is about 30% of the purchase price, and the total amount will reach hundreds of millions. LED will be effectively used for lighting, especially for a large number of users.

Facing the problem of overproduction, how can LED screen enterprises break through the encirclement?

First, we will accelerate structural adjustment and the transformation of development patterns. Adjust the industrial and product structure, actively develop the ability to adapt to the market demand, change from expanding the scale to paying attention to quality interests, and improve the overall development level of the industry.

Second, give full play to the guidance and inhibition of plans, policies and standards, strictly enforce access conditions, strengthen industrial access management, improve industrial monitoring system and overcapacity early warning system, and strengthen and improve industrial management.

The low threshold of LED full-color display industry has led to a large amount of capital inflows in the past few years, resulting in oversupply and a sharp drop in gross profit at both ends of the industrial chain, and many suppliers are facing loss or scrap. According to incomplete statistics, 4000 led enterprises disappeared in the market in 2015. In 2016, as the supply and demand of LED full-color display industry eased, over production will become more obvious. After rectifying the industry competition mechanism and improving the industry standard, most of the LED enterprises will be at stake.

Finally, we should promote the merger and reorganization of the industrial chain and speed up the exit process of "inferior" enterprises.

"Poor" enterprises occupy a large number of social resources, but fail to create corresponding social value. Accelerating the merger and reorganization of such enterprises can effectively ensure the social resources occupied, and at the same time maximize the social value of the advantageous enterprises: the high-tech, productivity and management level of the advantageous enterprises promote the orderly development of the whole LED full-color display industry. At the same time, effective merger and reorganization can fundamentally balance the supply-demand relationship of the market and lead the market to the direction of industrial development.

Overcapacity is a double-edged sword. Overcapacity will lead to a series of problems, such as price war, enterprise bankruptcy and so on. Excess capacity will also overshadow medium and low-cost enterprises, and enterprises with poor quality and capacity will gradually withdraw from the market and eventually leave large enterprises with strong strength.

Big waves sweep the sand, and the strong stay by themselves. Led full-color display industry is facing the problem of overproduction. We must further strengthen our own technology, continuous reform and innovation, and enhance our own strength to resist the storm.