How can LED companies do to win in the high-integrating LED industry

In 2019, the LED display market was fluctuant. Due to the impact of the entire economic environment, the situation of the LED industry was also difficult. Meanwhile, the competition within the industry was becoming more and more fierce. Market development also changes frequently. It is predictable that the industry resource integration, passive or active corporate mergers and acquisitions, and increasing brand concentration will bring significant adjustments to the LED display industry in the next few years. The companies that have the advantages of technology, channel and scale can win in the competition.

Nowadays, the LED display industry faces many problems, such as the reduction of dividends at the national and government levels, and the possibility of import and export tariff differences, all of these will change many LED display manufacturers’ procurement plans and relocation decisions. In addition, the uncertainty of the LED industry will curb demand in the market. What’s more, although the Mini LED and Micro LED are becoming the new growth points, the traditional display market continues to fall. With the fierce competition in the LED display industry, the integration of the upstream and downstream industry chains of the entire industry is accelerating, and the market concentration is gradually increasing.

The LED display industry is experiencing varying degrees of transformation and global industry chain integration. The merger and acquisition of the LED display industry continue to happen. M&A can enable enterprises to gain superior technology and resources, which can enhance production scale, reduce the production cost, and strengthen market development efforts. Furthermore, the leading enterprises of the LED industry have strong technology and capital reserves. This strong capital reserves can be used for technology research and development, production equipment investment, strengthen enterprise capacity, integrate many excellent supplier resources, and create a better quality industry chain. In this process, it is inevitable that some small companies will lose some of their sales shares. While it doesn’t mean the small companies will quiet the market. It will encourage the current LED display companies to pay more attention to the enterprise production optimization and effective resource integration.

In the condition of new policies, new situations, new opportunities and new challenges, seeking high-profit segment markets will become the main direction of many enterprises. Brands in transparent screens, rental screens, and other segments are also constantly concentrated. Some strong screen companies continue to stand out. With strong technical advantages, they maintain a stable market share even in the case of falling market conditions. These companies have been focusing on a certain segment market, and they have become the representatives and leaders of this field.

Last but not least, building your own business ecosystem is also becoming more and more important. The biggest challenge in this process is how to balance and maintain the relationship and interests of suppliers, partners, clients and other industrial chains. It also needs to obtain superior resources from the outside, then integrates. To achieve this, building an open cooperative platform than can realize win-win is a big path. Only in this way can LED Screen companies create a strong competitive strength, and ultimately create greater value for customers and win a broader market.