What kind of risks will domestic LED display companies face in overseas markets?

With the development of LED displays, LED products have now made a new breakthrough. At least the progress is improved over the previous stage. It has also developed a series of products that are completely different from traditional light source applications. The LED display will have a larger and wider development space. LED display is not only a beautification effect, its change makes it more relevant to people's work and life. Nowadays, manufacturers have to fight for the advantages of designing applications and technology research and development.

LED display screens are generally used to display various information such as text, images, video, and video signals. At present, in the domestic LED display market, due to the large number of enterprises and the serious homogenization of products, price competition has become the main means of market competition, and the profit margin of enterprises has been continuously compressed. Under this background, domestic LED display enterprises They have turned their eyes to overseas markets.

In fact, the expansion of overseas markets faces a series of risks and complexities, including whether the local political and economic situation is stable, whether laws and regulations and regulatory measures have changed, and whether the company's overseas business management and after-sales service are in place. It also includes changes in the political environment, economic prosperity and purchasing power of the relevant countries, trade policies with China, trade barriers and industry standards. The company has the risk that the overseas marketing plan cannot be effectively implemented and the relevant inputs cannot achieve the expected return.

So what are the risks and challenges?

Xiang Jianyong, deputy general manager of Shenzhen Lianjian Optoelectronics Co., Ltd. said: “The first is the price pressure from peers, the short-term way of doing things without quality, and the negative impact on the industry will take several years to digest; the second is marketing and The pressure to promote costs, the international front-end investment, not only the problem of money, the adjustment of personnel and the entire company, it will take a while to complete."

“In overseas markets, application integration, sales model innovation, product innovation, and post-service are both challenges and opportunities for testing Oreda.” Gao Yang, overseas sales director of Shenzhen Aoerida Technology Co., Ltd. said, “Let me compare What is profound is that we have gradually formed our own characteristics in overseas sales mode through several years of exploration, such as the industry development we have done, in addition to the traditional advertising logo industry, in the system integrator industry, design industry, glass curtain wall industry, The terminal chain industry is involved. We fully exploit the characteristics of the products, making the target customers of LED display more extensive and the industry more clustered."

In addition, Gao Yang believes that for non-listed companies, in the case of relatively limited scale of operation and production capacity, it is easier to ignore the so-called big customers and large project risks. “Excessive concentration of overseas customers and projects will make the company's production and operation objectively dependent on several customers and large projects. If these customers have significant adverse changes due to their own business or cooperation with the company, large projects will grow. The delay in time will lead to a sharp drop in overseas orders, which may also lead to a short-term sharp decline in the overall performance of the company. We have previously worked hard to develop new customers, optimize customer structure, develop multi-industry customers, develop new markets, and expand The scope of application of the product is a good way to avoid this risk," he said.

In 2016, China's LED display industry research report shows that Chinese manufacturers are currently in a leading position in the international LED display market. Chinese companies have basically taken over the production and supply of international LED displays. In contrast, international brands Such as Dakko, Barco's display supply chain is shrinking, the river is down. But this does not mean that Chinese companies have successfully occupied the commanding heights of global LED display development.

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