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The development of the domestic LED display company should focus?

by:Atop     2020-06-06

In the past two years, for export space is about 60 billion yuan of overseas market, LED display companies "sea", and even some LED display enterprise gradually to expand overseas markets as the main focus. Domestic LED display business focus to the situation of the overseas migration, gradually shift to the domestic and international LED industry, it is under such a contrast, so the question is coming, the development of the domestic LED display company should concentrate on? International LED industry shift to domestic and overseas development to allocate share as international LED industry shift to domestic, overseas rivals in the establishment of the domestic production base, the industry competition is also increasing, product prices continue to drop. There is no denying that in the manufacture of LED display chip, LED technology abroad is undoubtedly is high compared to the domestic, in such a situation, the international large LED display company to China, will give more pressure on the domestic LED display company, has been in the domestic market competition pressure increase, however, because of the pressure of competition "shopkeeper" of cutting big and choose when, for international LED display companies accounted for the domestic market is obviously not desirable. "Overseas market to make profits by differentiating products, overseas market homogeneity competition, eventually lead to low profit margins. "DE color sales director wakabayashi said overseas market space is large, but there are certain risks in overseas markets, such as need certification, trade barriers and so on. 

 Nowadays, the emergence of the "foreign trade new scam" is undoubtedly increased the risk of overseas trade, however, the headache is LED display enterprise risk is not limited to the overseas market expansion. For the traditional Chinese enterprises, do a good job in the international market have a certain challenges. First, due to China's LED industry started relatively late, not enough understanding of intellectual property rights, of patent application and protection work is relatively lag, make Chinese LED display enterprise in the face of fierce market competition, by not LED patent this weapon, it is difficult to gain the initiative in the competition in the international market, often in a passive position. Second, LED international standards set in large scale, its system is relatively mature and perfect, and basic synchronization with the development of the market. And LED standard come on stage in our country is relatively backward again many, the European debt crisis, dwindling overseas LED display market. The European debt crisis make the eurozone slowing economic growth, the market demand. In response to the crisis, several European countries adopt fiscal austerity, and the consequences of fiscal austerity is a decline in consumption, consumption decreased, in turn, will further lower economic growth, shrinking consumer spending. In addition, different region also has the corresponding constraints in overseas markets, in the Indian market, for example, doing business in India, must depend on the local agent, is essentially due to the local tax system, with India after the transit into India, state and economic transactions between still charge for value added tax and sales tax, cause have to rely on the cascade agency system, relying on local sales channels. 

 This not only takes enterprise manpower and financial resources, both in looking for a logistics and construction company that there is a certain risk. In contrast, domestic, at present the country in the LED industry support a certain export tax rebate policy, since June 2009, the domestic LED full-color display products for export tax rebates to 14% from 17%, while the export tax rebate has become many export-oriented enterprises an important source of income. Easy to, for example, during the reporting period, easy to get the export tax rebate amount of 1190 respectively. 300000 yuan, 2578. 920000 yuan, and 868. Operating income of 220000 yuan, occupy enterprise considerable proportion. But if the future national export tax rebates, lower related products LED display enterprise net profit could be severely affected. Under such risks, if our LED display enterprises focus on overseas market development, and ignore the development of the domestic market, so, if the crisis in overseas markets, there is no strong local market share support, ask the enterprise will be how to survive. International big LED display enterprises invest in mainland China, and its international marketing services network, brand advantage and so on will cause greater competition to domestic export enterprises. If you don't do a good job in the local market, therefore, maintenance and consolidation, single-minded focus on overseas market expansion, the local market will be overseas LED display is divided by occupation. Domestic LED market the "red sea", the domestic market also has a prosperous wealth of today, people talking about the present situation of the LED display market, homogeneity, low price war, innovation, and so on negative words with LED display industry, peremptory think domestic LED display market walk to the corner, let a person can't help but doubt: is the domestic LED display market is there really no way out? Apparently not. First of all, with the development of domestic economy, the purchasing power of the LED display will also be improved. According to the bureau of statistics data show that in 2014 China's total retail sales of social consumer goods grew by 13% year on year, than in the first half of last year and in the first three quarters of respectively 0. 3 and 0. 1%, present development situation is becoming better and better progressly. Along with our country accelerate the consumption structure upgrade, the residents is an increasing demand for high-end consumer products and services, and LED display and other high-end consumer market is expected to accelerate growth. In addition, on July 1, China's manufacturing purchasing managers' index ( PMI) , according to the data published in July PMI index of 51. 7%, higher than last month 0. 7%, the biggest rise since this year. By the end of July in manufacturing PMI has five consecutive months. National Bureau of Statistics (NBS) senior statistician Zhao Qinghe services survey center said: "China's manufacturing steady positive trend is more obvious. ", he says, since this year, with steady growth, structural adjustment, livelihood, prevent the policies and measures such as risk effect appeared gradually, domestic demand gradually warming, combined with the external economy continues to recover, external demand improved, positive factors of economic development. LED display as a member of the China's manufacturing industry, its market competition will also get a certain ease. Second, China's urbanization process is accelerated, lower-tier cities LED display market space is huge. State department SheYuan city white paper recently mentioned, our country in 2020, will complete the urbanization construction coverage up to 60%. Predicts 2020 urban families for led products consumption output will reach 500 billion yuan. Acceleration of urbanization will be driving the development of urban and rural areas of infrastructure, stimulate investment and consumption. And the LED industry as part of a building and automobile industries such as industrial chain, with the development of other industries and has more market demand, in turn, stimulates the LED industry development, injected a fresh energy to the LED industry. As a member of the urban development process, the appearance of led display makes cities play a different style. Town of construction cannot leave the public infrastructure, the environment, the improvement of the management and the popularization, will also face more and more energy consumption problem, so the LED application become beautify the landscape in the process of urbanization, to reduce energy consumption of main products. According to the study, the urbanization rate every 1% increase in urban per capita consumption expenditure will be increased by 2. 0083%. With an updated development of LED technology, LED display product prices will also declined, and the expansion of LED display products to market to mature gradually, the requirement of the outdoor landscape will be more and more high, as one of the city logo products, LED display will be as the pace of urbanization construction, go deep into the various classes, predictably, LED display will be in the downtown of the city's standard products. In addition, the government's strong national brand, LED display development domestic enterprise have an advantage. For a long time, our country is on the LED give attaches great importance to and support the energy conservation and environmental protection products. All over the country the government used land, taxes, rent, labor cost and other "invisible hand" to introduce the LED industry, huge Numbers of funds to support and pull out to help. From 2009 to 2010 in upstream MOCVD purchasing investment subsidies a amount to tens of millions of yuan, recent chau Ming can obtain 5 million yuan of product expansion project subsidy, three four subsidies for up to 2, 2012. 3. 2 billion yuan. Visible by the state and government of the LED industry. Now all over the country are accelerating the pace of government departments to use the LED display products, it from various government tender can see understand. Youth Olympic Games opening and closing ceremonies as well as the major venues used by most of the entertainment for the domestic brands. To sum up, overseas market development right, but in the new situation, the domestic market is also very important to consolidate. Source far to do so, the domestic market will usher in a more broad space, domestic LED display as a local Chinese enterprise, consolidate the good foundation, to develop more in the long run. 


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