LED display slows down

The slowdown in demand for LED display screens has become an open fact. Major manufacturers have sought to break through the market segmentation.

The market demand for display screens has increased by 10% to 20% every year, but the growth rate has indeed slowed in recent years. This is normal. Zhou Jianhong, deputy general manager of Konka Video, believes that the performance growth of the likes of Dakko and Buck in the United States has been relatively stable. In every industry, there are people who drink soup and some people eat meat. Enterprises in the middle scale will be more upset in the future. However, as long as everyone in the industry digging in a certain market segment, it should not be too much of a problem to live.

With the declining prices of LED display screens, some new market segments appear to have begun to rise rapidly.

On the evening of December 6, QinShang Optoelectronic issued an announcement. Qinshang Semiconductor, a wholly-owned subsidiary, recently signed a day-to-day business cooperation agreement with Hebei Shennong Network Service Co., Ltd., and agreed that Shennong Network will purchase LED advertising screens and related cooperation matters and agreements from Qinshang Semiconductor. The amount is about 99.48 million yuan.

Zhou Jianhong believes that the first-tier cities have saturated some parts of the city after years of development. Coupled with some government restrictions, the growth rate of demand will certainly slow down. The sinking of channels into third- and fourth-tier cities and even rural areas is a trend. After all, displays are becoming cheaper. In some small places, the display could not be used before and it can be used now.

Wu Meng, director of LED display screen market of Zhouming Technology, also agreed with Zhou Jianhong's point of view. He believes that there is a demand in the rural market. There are also demands in the relatively underdeveloped regions of Tibet and Inner Mongolia. However, their requirements for quality may be There will be some differences. For example, the quality requirements of rural areas are not too high, but these northern regions of Tibet have requirements for the start-up and other parameters for the extremely cold weather display. At present, this market has entered relatively few, after all, the product quality requirements are high. He estimated that the future increase must be in the second and third tier cities, and the growth rate must exceed 30%, and even 50% and 80% are possible.

In addition to the rural emerging markets, this year, Zhou Ming Technology won the bid for the Honda 4S store, the cooperation between Retop and Wanda Real Estate, and Shenzhen Konka Video’s successful bid for the T3 terminal of Shenzhen Airport. It seems that this indicates a new round of LED displays in the commercial field. The battle has only just begun.

As the earliest domestic manufacturer to explore LED small pitch display technology, in 2013 Riad successfully won the bid for multiple CCTV studio backdrop projects, which has fully proved that the company’s products have been recognized by users and that it has the conditions to promote to high-end users in the broadcasting industry. At this time, the main purpose of the company's acquisition of the Internet Yida is to quickly promote the radio and television industry with the company's new product, LED Small Pitch TV.

Zhou Jianhong believes that in the past few years, government projects for bid invitations accounted for a lot of differences. In recent years, advertising companies, real estate, and commercial organizations have gradually become large bidders. They have very high requirements for display technology and quality, and it is difficult for SMEs to have sufficient technical capabilities to win bids. As a veteran listed company, Konka Video emphasizes quality but does not place much emphasis on quantity. They also hope to undertake such a large project.

Wu Meng, however, holds the opposite attitude. He believes that there is still a considerable part of the government’s behavior in the bidding for display screens. This year, the government’s demand has stagnated, and it will have a certain impact on the business of Zhoumin Technology’s domestic market. Restart. However, this year's overseas market growth is expected to be 30%, so the overall performance may be similar to last year.

Like 4S shops and terminal buildings belong to the niche market, the amount will not be too large. The development of commercial realtors is now all done by high-end leasing companies that work with Zhou Ming, but it is always only part of the entire market. Wu Meng believes that the market will focus on high-end leasing and high-density products next year, and the company will also focus on developing this market.

At present, many domestic companies exporting abroad are subject to brand influence and after-sales, quality issues, etc., and development has entered a bottleneck period. Although there are markets all over the world, it is still dominated by European and American markets and competition is fierce.

Various display manufacturers began to look for their own positioning and dig deeper into market segments.

This includes a strong color company in Fujian and Taiwan, which started out in the market with a low-cost full-color display this year. It has shown that it can quickly divide up the low-end market.

At the same time, the layout of various LED display leading companies in the high-end market has become increasingly evident. For example, although the media business has been developing so slowly, it has always insisted on the joint construction of optoelectronics, specializing in the high-density market, LED TV concept of Liad, focusing on financial institutions, stadiums, outdoor display of Alto Electronics, focusing on high-density display , high-end leasing of Chau Ming Technology.

Just before the press release, the joint venture of China Optoelectronics, which was suspended for two months, announced that it intends to acquire 100% of the shares of outdoor advertising media, Timeshare Media, in cash and issue shares, relying on its own LED display manufacturing and sales. Business advantage, extending to the downstream advertising industry.

However, unfortunately, they still do not reach the absolute right to speak like Dakota and Buck in the industry, and there is always the risk of uncertainty in the market share of SMEs.

From the current point of view, the market demand for display screens in the field of outdoor advertising is still the largest. On the surface, it seems that the competition between display companies is actually a struggle where the enclosure is king. Who can get the approval of the advertising space? Whose Market capacity will increase.

Under this background, the display industry gradually differentiates, and small and medium-sized display manufacturers will enter a new round of reshuffle.