Today, the domestic LED display industry merger integration and reshuffle growing industry, "the bigger" in the market further demonstrated. At the same time, the domestic macroeconomic weakness led to more intense competition in the industry.

In order to compete for market share, companies cut prices mustering horsepower. Standardize the price of LED display become the "vanguard", but still can not achieve the homogenization of serious substantial profit. For a time, innovative products become a new profit growth point, technological innovation, channel differentiation become prominent tight encirclement price of victory.

Homogenization of serious, conventional products low profits

In recent years, under the stimulus, LED display industry of rapid development, the formation of a certain size of the market, its product range, the number has been greatly increased. With significantly enhanced productivity, coupled with some companies blindly optimistic preliminary expansion, overcapacity problems began to appear in the LED display industry.

This year in particular, due to the slowdown in economic growth, the whole big market environment changes, the government has declined to use the screen volume, a lot of lighting engineering, dramatically reduce outdoor display engineering, overcapacity more prominent.

Once the industry is facing overcapacity, companies first thought is to cut prices. Large-scale enterprises, once the price, many SMEs have been forced "to fight", then a domino effect broke out, the price war spread to the entire LED industry inevitably occur. Currently, the price of products in the industry more than ordinary LED display, which directly led to declining corporate profits.

From 2006 to 2008, LED display the highest profit can reach 30% -50%. But over the past two years, the profits of the top end display works remained at 10% -15%. Channel providers can maintain 8% -10%, but some 5% of the profits are not.

In response to fierce market competition and reduce the production cost, LED display industry producing the same products business increased, product appearance, the structure is almost the same, low gold content. Many enterprises lack innovation, product fail to reflect the diversity, homogeneity of products on the market get together.

The reason why the display industry homogeneity, mainly due to a high degree of segmentation of the display industry. LED display manufacturers purchase only from suppliers control systems, circuit boards, frame structure, equipment and other parts there, then you can assemble.

In the context of excess capacity, the homogenization of the product finally had a way to dispose of a sale. Obviously, a number of companies into overcapacity, homogeneity and the vicious cycle of price competition.

Currently, the price and the homogenization of the most powerful conventional LED outdoor display. In this regard, insiders Zhang Qiang said that the conventional and standard products are not grown for three consecutive years, the market growth of 20% -30% of all the shaped screen and a small pitch or product in the wholesale market.