[Source: "New Industry" June issue] The current LED display has been widely used in advertising media, gymnasium venues, stage performances, etc., has become the most mature segment of the domestic LED application field.
According to the data of the High-tech LED Industry Research Institute, although the output value of the L ED display in 2011 reached 21.9 billion yuan, the market growth rate has gradually slowed down, and the fierce market competition has led to a sharp drop in the price of the LED display market.
Gaogong LED Industry Research Institute believes that although the LED display industry has not seen a situation in which several manufacturers monopolize the market, with the brand advantage of individual manufacturers, the LED display orders are increasingly inclined to large manufacturers, which are gradually forming. The market aggregation effect, the industry development began to enter the market pattern of the big Evergrande.
Slowdown
According to statistics from the High-tech LED Industry Research Institute, the output value of China's L ED display in 2011 reached 21.9 billion yuan, an increase of 18% year-on-year. Compared with the growth rate of 54% in 2010, it has been greatly reduced.
The main reason is that the rapid popularization of LED display screens has enabled the LED display market to mature from a rapid growth period, and the future growth rate will gradually stabilize. The High-tech LED Industry Research Institute predicts that from 2012 to 2015, the LED display market will maintain an annual growth rate of 10%-20%.
With the slowdown of market growth, the price competition of LED display products will become more and more fierce, and the overall price drop of LED display will be a key factor in the expansion of market capacity.
From 2010 to 2011, whether it is outdoor, semi-outdoor or indoor, monochrome, two-color, full-color LED display screens continue to cut prices, the overall price cuts are around 18~20%.
Among them, the low-end LED display price is the most prominent, with a drop of more than 30%; the high-end LED display price has dropped by an average of 10%, and the highest drop has not exceeded 13%.
The survey results of the High-tech LED Industry Research Institute show that compared with the sharp decline in the price of LED chips in the upper and middle reaches, the price decline of LED display products can still be accepted by manufacturers.
Therefore, from 2010 to 2011, the gross profit margin of LED display manufacturers declined, but the company's business revenue and product sales are still growing.
The High-tech LED Industry Research Institute predicts that the price reduction of L ED displays will reach 15% in 2012. In the future market development, the market pull effect of LED display prices will become more and more obvious, and will exceed the pulling effect of LED display technology.
Direct sales model into the mainstream
At present, LED display manufacturers mainly have two sales modes: channel sales and direct sales. From the perspective of gross profit margin, the gross profit margin of direct sales is higher than the gross profit margin of channel sales.
Therefore, the development of domestic LED display manufacturers are faced with a choice: to control the market or to control the gross profit margin of products. This also directly led to the difference in the development route of LED display manufacturers. To the market's LED display manufacturers to take the channel, to maintain the product gross margin of the manufacturers to direct sales.
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