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Opportunities And Challenges Facing The LED Display Industry In 2018
Dec 05, 2018

The year of 2018 is an important year for the "Thirteenth Five-Year Plan" and is the key year for winning the three major battles. For the LED display industry, in the big environment, how to keep up with the policy, with the policy of the east, faster and better development, is a common concern of enterprises.


The impact of policies on LED display companies
According to the latest policy, in 2018, we must make overall plans and advance in an orderly manner to ensure that we can win the battle to prevent major risks, accurately eliminate poverty, and prevent and control the three major battles. According to the deployment of the conference, promoting high-quality development is the fundamental requirement for determining development ideas, formulating economic policies, and implementing macro-control in the current and future period.
In recent years, the LED display industry is highly competitive. Most companies rely on price advantage to survive. They are profitable by expanding their scale and making small profits and quick turnover. However, this “winning by volume” business approach will no longer be timely. At present, although the LED display has greatly improved from the design of the product to the display effect, how to meet the increasingly diversified and increasingly high display requirements of the market will become a must for LED display companies. The subject of the right.
From the perspective of the deployment of 2018 work, the supply-side structural reform is still the main line. In 2017, the “environmental protection” storm swept across the country, and major industries talked about “protection”. The most direct impact on the LED display industry was the increase in prices of raw materials and various accessories, which led to the continuous increase in the production cost of LED displays. However, in stark contrast, although the packaging from the upstream chip end to the end product is “increase”, there is no such thing as an LED display company that dares to say “up”. Some of the products of individual enterprises have not even risen and fallen, which has brought a severe test to the survival and development of many small and medium-sized LED display companies.
There is no doubt that this test will continue in 2018. Therefore, we predict that the possibility of continued price increases in raw materials such as 2018 is very large. However, due to the price increase of raw materials in 2017, the price increase of upstream chip and mid-stream packaging enterprises is different. It is unlikely that the price of LED mid-stream enterprises will increase in 2018. This is due to the fact that several chip manufacturers and midstream upstream of the industry in 2017 The large packaging companies have undergone large-scale expansion. With the release of production capacity, the price reduction of LED products is a high probability.
As an emerging industry in China, LED has been far ahead of the world in scale. The technology of LED display screens has continued to develop in recent years. The small-pitch style has made Chinese LED display companies proud in the world. Nowadays, emerging technologies such as COB, MINI LED and Micro LED are also making progress, and various emerging technologies are also emerging. In the future, how the LED display responds to the national call, following the pace of reform, and the integration and development of peripheral technologies will be a problem that enterprises have to think about.


The “One Belt, One Road” strategy brings opportunities to LED display companies
The vast territory of the “Belt and Road” construction will have an important impact on the global geopolitical economy of the 21st century. Since the initiative was put forward, the “Belt and Road” construction has achieved initial success in the Eurasian continent. At least 65 countries and regions around the world have participated in the construction of these projects, which has brought very good development opportunities for the country and enterprises.
Enterprises are the main body of implementation and backbone of the “Belt and Road” construction. The “One Belt, One Road” construction has brought new opportunities for Chinese enterprises to “go global”. According to public data, as of the end of 2016, Chinese companies have built 56 economic and trade cooperation zones in more than 20 countries along the “Belt and Road”, involving multiple fields, with a cumulative investment of more than 18.5 billion US dollars, creating nearly 1.1 billion US dollars for the host country. Taxes and 180,000 jobs.
The construction of “One Belt, One Road” is undoubtedly an unprecedented opportunity for Chinese LED display companies. There are many countries and regions along the “Belt and Road”, and the market is huge. For LED display companies, there are huge business opportunities. For example, the establishment of the commercial center of Horgos Port in China has driven the infrastructure construction of Kazakhstan. Horgos will become the transportation hub of Chinese goods to Russia, Belarus and even Europe in the future, which will provide us with LED display companies. The stage for display. Others, such as the construction of the China-Pakistan Economic Corridor between China and Pakistan, the Aji Railway in Djibouti, and the construction of the Piraeus Port in Greece, have provided a huge market for LED display companies. If LED companies can keep up with the national strategy, they can not only avoid the fierce domestic market, but also reduce the excess capacity, while also enhancing the brand influence of the company.
At present, with the advancement of the “Belt and Road” construction, the influence of Chinese enterprises is constantly improving. However, the participation of Chinese enterprises in the “Belt and Road” construction is also faced with the low level of participation in the formulation of international standards, the low level of internationalization of corporate talents, the weak communication ability between enterprises and foreign NGOs, and the lack of risk response and disposal capabilities. Its influence forms a constraint. In this regard, our LED display companies are no exception. Therefore, in 2018, China's LED display companies must pay attention to avoiding risks while taking advantage of the national strategy, and give full play to their own advantages and embark on a path suitable for their own enterprises.


The game of big countries, the international situation is changing
In 2018, the Chinese nation continued to work hard to achieve a great rejuvenation. The United States, the world's number one economy, sought to lay out the "Great America". There was cooperation and competition among the big powers. However, regardless of cooperation or competition, the changes in the international situation will have a huge impact on the economic and trade activities of enterprises.
Looking at our LED display companies, more than 80% of the world's LED displays are produced in China. These are all indicating that China's LED display companies have already started global competition.
In 2018, the "337 investigation" initiated by the United States for lighting equipment, LED power supplies and their components did not rule out the possibility of expanding LED display products. China's LED display companies are facing the possibility of "double-reverse", so LED display companies In the process of foreign trade, it is necessary to prepare for this risk ahead of time, plan ahead, minimize risks and reduce unnecessary losses.
Therefore, we can foresee that no matter how the international situation changes, no matter how frequent trade frictions, China's LED display companies will not stop at the international pace, and the future shows that the industry's prospects are still bright.


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