Interpretation of the future of LED display in the era of mobile Internet

At present, there are more than 1.6 billion smart phone users in the world, and these 1.6 billion are the main body and core of society. Mobile Internet has truly become an indispensable part of people's life and work, subverting the entire social life, including corporate business models, almost everything Before the popularity of mobile internet, if customers have a bad customer experience, they may only admit that they are out of luck. But now a customer ’s Weibo can make the world available in 2, 3 seconds Everyone knows that a company, a product, a service promise has not been fulfilled. Customers can obtain the functions of a certain product, and the price is even easier anytime, anywhere. In the era of mobile Internet, what kind of challenges will the LED industry face? What kind of trend will LED display show?

<1> Transparency (non-price war)

In the past ten years or so, because LED display screens are non-standard products and have an engineering nature, LED display screen companies have grown and sold in a closed environment. It caused a series of problems such as chaotic product models, chaotic quality, and chaotic prices. A market of less than 30 billion accommodates more than 2,000 companies, with relatively large profit margins. Undertaking orders mainly depends on the salesperson's public relations ability and operation ability. However, the advent of the mobile Internet era has completely changed the closed mode of the LED display industry. Now when customers need LED displays, they can find the company, products, prices, etc. in seconds, anytime, anywhere, everything is transparent.

1) The transparency of the company's comprehensive strength and the asymmetry of the previous information have ensured an LED display industry of less than 30 billion, and it accommodates more than 2,000 companies that are profitable. It is not smooth for customers to obtain information from LED display suppliers. It is the salesperson who communicates with the customer ’s decision-making, and the contract is settled in the process of changing the cup. In the era of mobile internet, the comprehensive strength of the display company's scale, cases, sales, quality brand and so on is completely transparent, and customers have enough information to verify and verify the true situation. At this time, the largest companies in the LED display industry will first become the target of customer selection.

2) Price transparency: Price transparency (non-price war) has become the biggest impact on the LED display industry in the era of mobile internet. In a very chaotic LED display market, there are only a few mainstream models, outdoor Mainly P16 and P10. Indoors are mainly P6, P4. Previously, LED display prices were not transparent, mainly because manufacturers did not disclose prices, so it is difficult to find quotations on the website, and now with the expansion of some companies in the industry, they have begun to realize standardized mass production, and prices are open and transparent. Once the price of LED display is transparent, the sales model of the entire industry will be completely overturned.

3) Transparency of corporate word-of-mouth: Guo Meimei, the smiling director, and our sister-in-law Gong Aiai and other events let us experience the great social influence of information transparency in the era of mobile internet. The LED display of Harbour Plaza Hotel in Hong Kong caught fire, the stage screen of Yangzhou Gymnasium collapsed, and Beijing rental customers organized a return of goods, etc., and spread throughout the LED display industry immediately after the incident. The era of mobile internet undoubtedly shows the company "naked" in people before. Big companies are even on thin ice, fearing that "one name will be destroyed by a single name (denier)".

<2> Seeking change

Facing all the interconnected eras of transparency, the LED display industry is home to several joys and sorrows. Engineering and trade are undoubtedly disasters. Small and medium-sized companies are also facing a precarious situation. Even large enterprises in the industry have to face the disadvantage of severely declining profits after price transparency. Therefore, the resistance to price transparency will become a rare "tacit agreement" within a short period of time. However, the trend of price transparency is unstoppable. Under a brand-new business model, only by making changes can companies not die under the wheel of rapid market changes.

The change not only requires capital but also costs, there are more than 2,000 LED display industry, there are many people with super ability and well-funded enterprises. But if you really want to face the "all transparent" business environment, perhaps no company can face it calmly. The production scale, cost control, product quality, and engineering services of several representative listed companies all have problems, and they dare not think of the consequences of "all transparency".

No enterprise in the entire LED display industry likes "everything is transparent", but "everything is transparent" is inevitable. It ’s the direction of the industry ’s evolution. I think every company wants to overtake in a corner. This is indeed the biggest change in the history of the LED display industry. The comprehensive strength and the transparency of word of mouth are coming to an end. Only the transparency of the price has just begun. Who The strength of overtaking with corners is the key.

Ruituo shows that after being merged with Dehao, it has become a part of Dehao ’s overall game, rather than an independent unit. Dehao had been strategically laid out a few years ago, successively in Wuhu, Dalian, Yangzhou, Bengbu has invested heavily, from LED epitaxial wafers, LED chips, LED packaging, to the standardized mass production of LED displays, and the huge capacity and price advantages formed by strong capital have been released to the market. Dehao Group just borrowed "price transparency" as its Marketing means, hope to complete the major changes in the sales model of the entire industry led by the LED display industry.

Therefore, Ruituo will plan to promote the price transparency of each model in 2013.

<3> Impact

During the gradual realization of "price transparency", the original LED display industry sales model will be completely overturned: 1) The problem of information asymmetry is solved, and customers can more easily and objectively find deals with suitable LED display companies. 2) Reduced transaction costs, customers do not have to spend a lot of time to go to several factories to conduct field inspections and then round after round of negotiation and price reduction.

3) The product configuration is unified, and the supplier must design a product configuration with guaranteed quality for price transparency, and the product quality is more guaranteed. 4) It is conducive to the centralized development of the LED display industry to scale. After the standard is unified and the price is transparent, the market share of some enterprises will expand rapidly, and eventually a large internationally competitive enterprise will be formed. The LED display industry will soon start from more than 2,000 The number of homes was reduced to a few.

The process of "transparency of everything" is accompanied by pain. Enterprises with strong comprehensive strength such as price advantages and production capacity advantages, strong capital management and perfect management will accelerate the expansion and gradually invade the market of small and medium-sized enterprises. 1) Profit returns after "transparency of all" As a result, many poorly managed enterprises have gradually withdrawn from the market after losing their competitiveness.

2) The transparent price will again impact the payment that was released when the price was high, especially the rental market, which is private arrears, and the display screen is a non-standard product. It is easy for customers to find a reason not to pay. Social changes are like the alternation of the sun, the moon, and the stars. Both individuals and enterprises appear to have little power and can only sigh.

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