With the epidemic gradually under control, the global economy gradually recovered to the level before the epidemic, LED display application industry will shine on a broader stage. Looking forward to 2021, what challenges and turning points will the industry face? How will the LED display terminal market and supply chain break through self-limitations in the era of channel change, profit margin contraction, continuous product segmentation, and accelerated brand diversification?
In 2020, the "black swan" of the new crown disease disturbed the previously peaceful world. Offline social interaction is suspended, schools are closed, industries are closed, and every aspect of people's social life is disrupted by this "black swan". Among them, the global economy was hit hard, LED display application industry is also inevitably affected. Under the new development pattern of domestic and international double cycles, LED display related enterprises quickly adjust their strategies in products, channels and other aspects, and actively respond to the new normal of the epidemic.
Looking back to 2020, according to relevant agency data, the global LED market value in 2020 is about 15.127 billion US dollars (about 98.749 billion yuan), down about 10.2% year on year; LED wafer market capacity was about 28.846 million units, down about 5.7 percent year on year. Among them, the annual output value of China's LED display application industry is expected to decline by 18% to 35.5 billion yuan.
As a growth industry, the development of LED display application industry mainly depends on the progress of LED display technology, the launch of new products and the quality of services to achieve. Despite the huge impact of the epidemic on the market, the fundamentals of the industry remain stable and the overall trend is positive.
Although the epidemic crisis has not been completely removed, but China's economy is gradually recovering, LED display application industry is also steady progress. In 2020, China's LED display industry will have mixed feelings under the dual influence of the new world epidemic and the international environment. We are glad to see that our company has made great progress in the fields of small pitch, Micro/Mini LED and HD video, and the development space in each market segment continues to expand. Worryingly, the outbreak has led to a "chain break" crisis in the supply chain, with volatile prices of raw materials and chips and longer delivery times.
Connect more end users
What are the growth drivers for the Tier 1 market in 2021, and what are the methods and means for vendors to seek growth? Is the top priority of all LED display manufacturers. At present, the development trend of the whole industry is the giant and oligarchic stock market competition. The only growth power of the market is actually from the end users. Whoever can connect more end users first will be able to break through the dilemma, and this requires LED display manufacturers to complete the optimization and upgrading of channels first.
After experiencing the "temper" of the epidemic in 2020, the channel of LED display industry is no longer a simple "offline channel winning". Many LED screen enterprises have trained, developed and consolidated the channel moat for many years before, and the offline dealer system is facing new adjustment -- the integration of online and offline has become a reality.
However, for many traditional LED display dealers, how to better integrate online channels and upgrade store purchase experience and after-sales service under the premise of maintaining stable offline performance and sustainable operation? For the upstream manufacturers, how to guarantee the stability and sustainability of the dealer group under the background of channel fragmentation and multi-polar differentiation is also a big challenge.
Product adjustment and detonation
In the past two years, all kinds of new products on the LED display market have experienced a round of "high open and low go" multi-shock pattern. To put it simply, a round of high-end transformation, like a cloud and rain, soon no sound; A round of high quality low - price tide, a large number of high - cost - price banner products, to win a number of users eyeballs.
In the current situation of diversified consumption, the product is not just a simple technological iteration and functional innovation, but a step forward to the scene. It is to provide a good product that people of different levels, different needs and different income groups really want, not just low prices. This is not a test of technological innovation, but the grasp of comprehensive strength. Therefore, how to enable the iteration and innovation of LED display products through scenarioization in 2021, whether it is to stimulate the replacement of stock or stimulate new demand, is a test of the R&D and innovation strength of many LED screen enterprises.