How LED display companies respond to shrinking consumption
Companies that wanted to do a big job in 2020 did not expect to accidentally "turn over the ship" due to the outbreak of the epidemic. Many industries were severely damaged and even closed or unable to make ends meet. As one of the manufacturing industries, the LED electronic display industry is naturally not immune. From the first-quarter performance reports released by the major LED display manufacturers, it can be seen that most companies have experienced a sharp decline in performance. Although the domestic situation is improving now, how can LED display companies respond to shrinking consumption?
How LED display companies respond to shrinking consumption
In order to stimulate consumption, governments around the world have issued large amounts of consumption vouchers to encourage people to consume. However, for those who have just recovered from the epidemic, life is so difficult, where there is more money for consumption. Moreover, the impact of this epidemic on the market is definitely not a short-term consumption rebound, but it is unavoidable that it is affected by a series of factors such as economic income reduction and health concepts, resulting in tightening and conservative consumption. In other words, because people's incomes are reduced and the importance of the epidemic to health is realized, people will not spend too much money on consumption, but will be more economical and conservative, and will not waste extravagance.
The LED electronic display industry itself is a systematic, long-term, and complex engineering project with high cost. If advertisers believe that high-cost installation of indoor LED displays and outdoor LED displays can not bring certain economic benefits, then the market demand for LED displays will be reduced. As the upstream LED display manufacturers, shipments will naturally decrease, and corporate profits will also decline.
According to relevant data, China's consumption in January and February 2020 decreased by 20.5% year-on-year. Although there will be a certain rebound in the consumer market next, for the current domestic industrial situation and market development situation, this rebounding consumption probability continues to become smaller. This means that the expectation that all industries and industries expect a rebound in consumption to reverse the dilemma of enterprises may become a bubble.
As far as the LED display industry is concerned, the domestic market itself has already become saturated, and the market has gradually matured and stabilized, so market demand will also decline. In addition, it is now in the off season, so companies that attempt to rely on consumer coupons to drive the growth of the LED display industry seem to have some difficulties.
Secondly, people's consumption concepts are becoming tighter and conservative, and the market's consumption concept is also changing. That is to say, as people consume LED screens more and more rationally, it may cause that market demand will not change much in the short term. But it will lead to a batch of product structure adjustments under quality consumption. Therefore, Nationvision LED display manufacturers are constantly adjusting the industrial structure to adapt to changing market development needs and better respond to various "crises."
In addition, the LED electronic display industry is not a fast-moving consumer goods like the catering industry, but a long-term, systematic and complex engineering project. The current market has shifted from an incremental market to a stock market, and the social and environmental factors and market environment for explosive growth no longer exist. Especially in recent years, the low-price vicious competition caused by the major LED display manufacturers to seize more market resources has excessively consumed the future market demand.
Therefore, even in the case of shrinking consumer market, the major LED screen companies are cutting prices to stimulate consumption, but still can not solve the fundamental problem. Besides, at present, it is already very difficult for various enterprises to survive. If the price is further reduced, it will approach the cost price, which may cause many low-capacity brand enterprises to be forced to withdraw from the stage of history. In this market environment where there are many monks and porridge, major LED screen companies should readjust the industrial structure and change the previous low-price competition model.
Nowadays, the market demand for small pitch LED displays in the display fields of security, surveillance and remote video conferencing continues to rise. Nationvision LED display manufacturers are also constantly innovating and optimizing small pitch LED displays products, using SMD packaging technology and 4-in-1 Mini LED packaging technology to develop P1.0 small-pitch products and P0.X micro-pitch LED displays. The brightness of the small pitch LED displays is relatively high. The brightness of the screen can be automatically adjusted according to the surrounding environment brightness. At the same time, it can be seamlessly spliced. There is no graininess when viewing the picture at close range. The contrast is high. The size display field is more popular.
At the same time, Nationvision LED display manufacturers continue to deepen the market segmentation. For example, rental LED screen, LED time tunnel screen, LED interactive floor screen, LED transparent screen and LED special-shaped screen, etc. Compared with the screen that can only play videos, pictures and text, it has human screen interactive function, naked eye 3D and AR VR technology screens are more popular with the public. This is the main reason why LED time tunnel screens and LED interactive floor tiles screens have always had relatively small orders, but the market increment has been rising.
All in all, with the current market consumption declining, how can LED display companies respond to shrinking consumption? Affected by the epidemic, people's consumption is more inclined to tighten and conservative. Under this circumstance, Nationvision LED display manufacturers readjusted their industrial structure and deepened their market segmentation, while constantly innovating and optimizing small pitch LED displays to seize the security, surveillance and remote video conference display markets.
