What is the best time for LED display exports?

Recently, an interesting phenomenon in the LED display industry, from the big business in the industry to the small business owner, the topic of sitting together is no longer the topic of the domestic market, "price war", "listing fever", etc. Most of them have become foreign trade, exports, and overseas markets. Looking at the present moment, the LED display industry seems to usher in the best era of going abroad.

Now, the export of LED display products can be described as "there is a policy, there is 'inventory'."

The "13th Five-Year Plan" regards the "Belt and Road" as the main strategy for China's future development and opening up, and reflects the upgrading of China's opening up strategy and overall economic development strategy. This grand strategy provides Chinese companies with huge overseas investment opportunities and overseas markets. It is reported that most of the “Belt and Road” are emerging economies and developing countries. The emerging markets represented by Russia and Southeast Asia are the new blue ocean for China's LED product exports, and an important gateway for Chinese LED companies to enter the Central Asian and Eastern European markets. With the support of policies, LED companies will remove many obstacles when they go abroad. At the same time, some small and medium-sized LED companies in China can also take the opportunity to open up overseas markets.

In addition, the domestic LED market inventory problem is serious, the domestic market is gradually saturated, and the road of trade export has become an important way to “de-stock”. Through overseas market construction, LED enterprises can not only start brand reputation, expand market scope, and most importantly. It is a better solution for the de-stocking problem of the product.

LED screen enterprises export more is "the time is forced"?

As an important manufacturing base for LEDs and the world's largest application market, China has become a key market for international LED giants. Some developed countries and international companies have gradually brought the middle and lower reaches of the labor-intensive industrial chain to China through mergers and acquisitions and restructuring. The developing countries and regions such as the mainland and Malaysia are transferred to achieve the integration of upper, middle and lower reaches under the global unified marketing strategy.

At the same time, with the overseas brand enterprises building a market in China, the domestic LED display market competition has increased, coupled with the price war caused by the domestic LED display manufacturers "infighting" caused more manufacturers to lose confidence, in such a Compared with the domestic market that is gradually becoming saturated, expanding the international market has become a wise move for Chinese LED display companies to adapt to the situation.

Qi Yang, deputy general manager of Shenzhen Regent Optoelectronics Co., Ltd. said: "At present, the LED display industry is not very concerned by the government. In the first-tier cities of Shenzhen, enterprises survive in thin ice, and the plant rent and labor costs continue to increase. Forcing companies to adapt to the current situation and vigorously develop the international market. The domestic competition environment has been very bad, and excessive development has given domestic customers a concept: LED screens are very cheap. Domestic customers are always considering prices more than quality, stability, and effectiveness. Etc. The existence of customer inertia thinking also makes it difficult for companies that only do the domestic market to find new markets."

In contrast, LED international market, according to data analysis, the current market LED penetration rate is less than 7%, and in the global LED display output value, China's domestic is 1.86 billion US dollars, accounting for 45% of the global market. China’s direct export to overseas is 899 million US dollars, accounting for 22%. The sales of LED displays made by China in the world are probably close to 80%. Obviously, China LED has a large market share both domestically and internationally. In the global economic downturn, China's LED industry is not pessimistic, and the overall development prospects are still at the forefront. In the future, China's LED will go abroad to expand overseas markets. There is a bigger blueprint.

In this regard, Li Ke, general manager of Shenzhen Kehuiming Technology Co., Ltd. said: "European and American countries have strong strength on the chip, and are committed to LED lighting promotion, but the LED display is not deeply involved, China's LED display has very In the international market, the development of the LED display industry not only has a strategic role in the lighting and semiconductor industries, but also triggers technological changes in visual effects. Therefore, governments around the world have increased their support for the LED display industry policy. In foreign markets, there is a large demand for traffic-induced screens, sports square screens, and stage rental screens. This is an excellent opportunity for Chinese LEDs to “go out” and “de-stock”.

In addition, globally, many countries are stepping up legislation to encourage the use of energy-efficient light sources. Foreign markets have a high degree of acceptance of environmental awareness. Compared with China, the overseas market is more expensive, the profits are more abundant, and the collection period of funds is shorter. This is also an important reason for Chinese LED display companies to actively go abroad. .

LED screen companies based on overseas first you have to have "material"!

In 2016, the international competitiveness of China's LED industry has developed to a white-hot stage. Insiders said that it is an opportunity and a challenge for LEDs to go abroad. At present, China's LED display companies have now stepped out of the country. This is beyond doubt, but how to do well is The most important thing!

According to the analysis of Shenzhen Ligang, the overseas markets that China's LED companies are pushing out of the country are mainly Germany, the United Kingdom, the Netherlands, the United States, South Africa and the Middle East. The South American and South African markets have developed rapidly in recent years. The Middle East market has a large demand for low-priced products. In addition, Russia and Eastern Europe are also a potential large market, and many companies have also shown interest in the Russian and Eastern European markets. For some small and medium-sized domestic LED companies, in order to open up a new blue ocean in overseas markets, India, Egypt and other developed countries will be an excellent battlefield.

At present, China's LED display screens involving overseas markets also have the sweetness to appreciate, but in order to truly stabilize the script and develop in the overseas market, product quality is the primary condition. Regent Optoelectronics believes that LED display companies should focus on customer experience and product quality assurance. Only by continuously optimizing products, improving product competitiveness and the company's comprehensive brand capabilities can we maintain the advantages of development.

In addition to the guarantee of product quality, the maturity of technology is the hardware condition to support the LED industry to go abroad. Today, LED technology has achieved obvious advantages in energy efficiency and low-carbon environmental protection, and has been used more and more, China LED Manufacturing technology also has certain advantages in the international arena, which has formed a strong technical support for going abroad. In the future, in addition to identifying the direction of international market construction, companies should also strengthen technology research and development. In this regard, Li Gang stressed: "Strengthen quality management, in addition to the advantages of raw materials, the most important thing is the technical content, especially in the development of foreign markets, to highlight 'new, strange, strong, excellent'."

If we say that China's LED display screens are going abroad, it is a general trend to go overseas, but the foothold of overseas markets is by no means a breeze.

For domestic LED display companies, the “going out” opportunity and risk coexist, and the biggest challenge is whether to create a stable return on investment. Li Gang said, "The business environment of some developing countries in overseas markets is not good, and the political map is also uncertain. This will make the return rate of investment projects have large variables. Therefore, the enterprises that go global are more important. Comply with the three 'red lines', namely national laws and regulations, host country laws and regulations, and international norms and practices."

Qi Yang also expressed certain concerns about “going out”. “Although the international market has a better competitive environment, it can allow enterprises to calm down and really make products. However, foreign customers have relatively high requirements on products and technologies. Enterprises do not have certain R&D technical capabilities and there are certain risks in the later stages."

Although there are many difficulties in “going out”, many LED companies have chosen to actively invest in overseas markets. Today, seizing the opportunity to meet the challenge has become a common way for Chinese LED companies to go abroad. All in all, in the current situation of fierce international competition, if enterprises want to seize the opportunity to meet the challenge, they must base themselves on technological innovation. Only by forming certain advantages in product development and technology replacement can they stand out in the fierce competition of the industry; LED companies should comprehensively enhance the company's comprehensive strength, focus on product quality, and promote the development of enterprises.

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