In recent years, the LED display industry has developed strongly and has become the second largest segment of the LED industry after LED lighting.
According to statistics, in 2014, the global LED display market including display screens and other backlight products has reached 9.6 billion US dollars. According to forecasts, the market demand for global LED display will continue to grow rapidly in the next five years. The average annual growth rate will exceed 20%. It is estimated that by 2020, the global LED display market will reach 30 billion US dollars. At the same time, in the supply side of the global LED display market, China is the most important manufacturing base. In 2014, the export value of LED display screens and other backlight products in Guangdong Province alone reached 14.433 billion yuan, a year-on-year increase of 30.58%. .
When seeing these big data, many people may still be complacent about the prospects of LED display. As everyone knows, overcapacity has become a major obstacle in the LED display industry. However, the reason for the overcapacity of LED display is What about?
Counterfeit and low price promotion
Good things are always easy to attract people to flock to. The LED display is an emerging industry advocated by the state, but most of the “crab-eating crabs†here have not tasted the sweetness, but have become the pioneers on the road.
The entry barrier for the LED display industry is very low, and many small-scale, small workshop companies can easily enter. However, these companies that only want to "save a sum" have not taken the lead in technology research and development. Faced with the fierce competition in the market and the pressure from rising raw material costs, these companies are willing to rely on price wars at the expense of quality. Compete. This blind entry and low-end competition has led to chaotic and unmanageable LED display market.
Policy benefits financial subsidies
In fact, the enthusiasm of LED companies to go forward is largely due to the increasing support of the state and local governments for the industry.
In 2009, the National Development and Reform Commission and other six departments jointly announced the "Opinions on the Development of Semiconductor Lighting Energy-Saving Industry"; in the same year, the Ministry of Science and Technology launched the "Ten Cities and Ten Thousands" semiconductor lighting application demonstration city program; in May 2011, Beijing, Changzhou, Hefei, Qingdao, Guangzhou, 16 cities including Haikou and Baoji were confirmed as the second batch of “Ten Cities and Ten Thousand Cities†demonstration cities; in November, the National Development and Reform Commission issued “the roadmap for eliminating incandescent lampsâ€; on February 24, 2012, the Ministry of Industry and Information Technology issued the “IC Industry†Five "development plan".
The local government has also generated great enthusiasm for the LED industry, invested huge sums of money, and implemented substantial preferential policies for the LED industry in many aspects such as land, taxation, technology development, talent introduction, and equipment purchase.
In addition, the subsidy policy has also attracted many people to participate in the LED industry. The Ministry of Finance and other three ministries have launched the 2012 financial subsidy promotion project bidding for LED products, involving indoor and outdoor four types of LED lighting products, and subsidies for indirect subsidies. . According to informed sources, the subsidy ratio is about 30% of the purchase price, and the total amount is expected to reach hundreds of millions of scales, which will effectively stimulate the application of LED in lighting, especially in the field of large-scale user lighting.
In the face of overcapacity, how should LED screen enterprises break through?
First, accelerate the transformation of structural adjustment and development methods. We will adjust the industry and product structure, actively develop production capacity in line with market demand, and shift from scale expansion to quality and efficiency, thereby improving the overall development level of the industry.
Second, give full play to the guiding and restrictive role of planning, policies and standards, strictly enforce access conditions, strengthen industry access management, improve the industry monitoring system and over-capacity warning system, and strengthen and improve industry management.
Due to the low barriers to entry in the LED industry, in the past few years, a large influx of capital has occurred, and oversupply, gross margins have fallen sharply at all ends of the industry chain, and many manufacturers are facing losses or even elimination. According to incomplete statistics, there were 4,000 LED companies disappearing in the market in 2015. In 2016, the supply and demand relationship of the LED industry will be eased, and overcapacity will become more apparent. Reorganizing the industry's competitive mechanism and improving industry standards is related to the survival of most LED companies in the future.
Finally, promote the merger and reorganization of the industrial chain, and accelerate the process of eliminating "inferior quality" enterprises.
“Inferior†enterprises occupy a large amount of social resources, but they cannot create corresponding social values. Accelerating the merger and reorganization of such enterprises can effectively release the social resources they occupy, and at the same time maximize the social value of the dominant enterprises: The advanced technology, productivity and management level of the dominant enterprises promote the orderly development of the entire LED industry. At the same time, effective mergers and acquisitions can also balance the supply-demand relationship of the market from the source, so that the market can be truly guided to guide the direction of industrial development.
LED overcapacity is a double-edged sword. Overcapacity can lead to a series of problems, such as price wars, corporate closures, and so on. Overcapacity will also encourage low-end and mid-end enterprises to reshuffle. Some enterprises with unqualified quality, weak ability and weak financial strength will gradually withdraw from the market, leaving behind a powerful large enterprise.
The big waves are sanding, and the strong ones keep themselves. In the face of overcapacity, the LED display industry needs to strengthen its own technology, continuously reform and innovate, and enhance its own strength in order to withstand the squally showers.
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