Semi-annual analysis of the LED display industry, the market is down in the first half of the year, and various activities are active in the second half of the year

Although the LED display market was unsatisfactory in the first half of the year, the restart of various theaters and stage performances from May, as well as the recovery of various exhibitions and industry activities in the second half of the year, contributed to the improvement of confidence in the LED display market. Conducive to the shipment of LED display companies. Overall, the LED display market is expected to recover in the second half of the year.

In the first half of 2020, the epidemic broke out successively at home and abroad. Under the strict government control and comprehensive efforts to fight the epidemic, my country has effectively controlled the epidemic in a relatively short period of time. Nevertheless, the impact of the epidemic on my country’s economy in the early stage of the epidemic cannot be underestimated. The continuous increase in the number of urban unemployed in China has led to a continuous decline in purchasing power. In addition, the international competitive environment has become more complex, which affects the budget of end users and LED display-related projects. With the gradual recovery of the economy in the second half of the year, various activities in the LED display industry will be held together, coupled with the government’s proactive and loose fiscal and monetary policies, will this lead to a full recovery of the scale of LED displays?

Shipments weakened in the first half of the year, and activities gathered in the second half of the year

According to relevant statistics, in the first quarter of 2020, the global LED display market shipments were 255,648 square meters, an increase of 18.8% from 215,148 square meters in the same period in 2019, and the overall situation was increasing year-on-year. Judging from the performance reports released by several major listed companies in the LED display industry in my country in the first quarter, the impact of the epidemic on the first quarter was not significant. However, in the second quarter, the global epidemic continued to spread and spread, and the prevention and control situation is not optimistic. Many countries are still under relatively strict control. Large-scale gathering activities have not been opened up, and import and export are relatively strictly controlled. As a result, the trade volume of the second quarter trade quarter may be lower than the first quarter. In this regard, many people in the industry also said that the second quarter figures may be a bit inferior. After all, most companies have relatively few orders in the second quarter. Existing orders have been delivered or delayed, but new orders have not been seen.

In the second half of the year, with the overall recovery of the economy, the recovery of various LED display activities, and the maintenance of active sales strategies and activities by leading companies to achieve their annual performance targets, it is expected that the scale of LED display shipments will show a full recovery in the second half of the year. trend. In May, the Ministry of Culture and Tourism issued notices such as the “Guidelines for the Reopening of Theaters and Other Performance Places to Prevent and Control Measures against Epidemics”, clarifying that theaters and other performance venues are limited to 30% of seats and open in an orderly manner. The implementation of this measure is conducive to the recovery of the stage market; In addition, in the second half of the year, major exhibitions and exhibitions related to LED display screens, as well as various activities of enterprises, have also started, which is conducive to the activity of the market, the flow of orders and goods, and the full recovery of the LED display industry . Although the expectation for the second half of the year is good, due to the relatively saturated capacity of China’s LED display market, the weaker motivation for replacement, and the limited advertising funding of advertisers, it is expected that the overall market performance in the second half of the year will increase steadily. The increase, the decline narrowed and the trend of full recovery will appear.

The LED display competition landscape has changed, and the market concentration has increased

my country’s LED display market is a relatively saturated and highly competitive market. In the past few years, as the price of upstream lamp beads has continued to decline, module prices of downstream manufacturers have also continued to hit new lows, and screen companies have fallen into a vicious circle of low-price competition. At present, China’s LED display screens are in an awkward position of weak profitability from the upstream lamp bead factory to the downstream complete machine factory. The upstream lamp bead manufacturers are the first to adjust, which will bring challenges to the cost control of the entire screen manufacturer. It is expected to promote the adjustment of the downstream competition pattern and eliminate a group of companies, thereby accelerating the market concentration of downstream companies. At the same time, due to fluctuations in the global macro environment, the global LED display market has undergone tremendous changes. The European and American regions, which were once traditional large markets, are now unable to move their marketing activities; the Southeast Asian market is rising, but profits are weak , Coupled with the low requirements for LED displays in this area, it will also gather a large number of LED screen companies to intensify market competition in the region. Therefore, in the second half of the year, manufacturers should think about how to flexibly adjust their strategies in a rapidly changing environment to maintain competitiveness.

Break the fixed impression of traditional LED displays and establish a multi-category LED display ecosystem. With the continuous development of new infrastructure and LED display technology, driven by the 5G wave, the LED display has surpassed the traditional application concept. It is not only used for content display, but also as a cool immersive experience device , It can also be combined with XR technology to create a scientific and technological future shooting method. Therefore, the future LED display will be promoted in the direction of multiple scenes and multiple applications. As an important port of smart display, LED display will attract more display manufacturers such as traditional LCD and security companies to join, seize large-screen ports and users, and will also drive the continuous evolution of the competitive landscape of LED displays. Therefore, the establishment of a multi-scenario product ecosystem with users as the core will be crucial to future terminal competition.

Strengthen the layout of online channels and promote diversified marketing methods. During the epidemic, consumers’ consumption habits also changed with their homes. Live streaming and online marketing were once important marketing methods in the early stage of the epidemic. In the post-epidemic era, although many activities restarted, venues The opening up one after another does not mean that market activities have shifted from online to offline again. Moreover, my country’s online shopping culture is developed. In recent years, the proportion of online channels in the LED display market has increased significantly, and there is a multi-platform diversified competitive situation. Therefore, it is recommended that manufacturers actively deploy online channels, try and explore diversified marketing methods, focus on community marketing, focus on the establishment and operation of fan groups, and enhance fan conversion effects.

Jump out of the trap of low-price competition and seek a win-win situation in the industry. During the epidemic, due to the overall downturn in the LED display market, in order to gain more market share, small-pitch LED displays with higher profits have also begun to cut prices and engage in a weaker price competition. However, blindly low-price competition is not conducive to the healthy development of the industry. As chip lamp bead manufacturers form a competitive landscape of giant competition, it is expected that packaging manufacturers that have been in price competition for a long time will put profit as the first consideration, which is bound to squeeze upstream profits, which may drive down the price of downstream entire screens. Adjustment. Therefore, LED screen companies need to decisively adjust the product structure, accelerate the promotion of product technological innovation, increase the added value of products, jump out of the trap of low prices, in order to make profits, and ultimately achieve a win-win situation in the industry.

Although the LED display market was unsatisfactory in the first half of the year, the restart of various theaters and stage performances from May, as well as the recovery of various exhibitions and industry activities in the second half of the year, contributed to the improvement of confidence in the LED display market. Conducive to the shipment of LED display companies. Moreover, in the second half of the year, most companies also released annual new products, which is also conducive to stimulating the increase in terminal demand. Therefore, overall, the LED display market is expected to recover in the second half of the year.



Post time: Nov-24-2020