In the past two years, LED display companies have rushed to the overseas market with an export space of about 60 billion yuan. Even LED display companies have gradually expanded their overseas markets as their main focus.
The focus of domestic LED display companies is gradually shifting overseas, and the international LED industry is gradually shifting to the domestic market. Under such a contrast, then the question is coming. Where should the development focus of domestic LED display companies be placed?
International transfer to the domestic LED industry, the need to develop a rational allocation of overseas share <br> <br> with the international LED industry transfer to the domestic and foreign competitors to establish production bases in the country, the industry is also growing competition, product prices declined. It is undeniable that in the manufacture of LED display chips, foreign LED technology is undoubtedly higher than domestic ones. Under such a situation, the international large-scale LED display companies will turn to China and will give Domestic LED display companies have brought more pressure, and the competitive pressure in the domestic market has also increased. However, because of the competitive pressure, they have chosen to be the “hands-on shopkeeperâ€, making international LED display companies account for the domestic market. It is also not advisable.
“Overseas markets rely on differentiated products for profit, and overseas market homogenization competition, which ultimately leads to low profit margins.†The overseas market is large, but there are certain risks in overseas markets, such as the need for certification, trade barriers, and so on. Nowadays, the emergence of “new foreign trade scams†​​is undoubtedly increasing the risk of overseas trade. However, the headache is that the risk of LED display companies expanding overseas markets is not limited to these.
For traditional Chinese enterprises, it is a certain challenge to do a good job in the international market. First of all, due to the late start of China's LED industry, the understanding of intellectual property rights is not enough. The work on patent application and protection is lagging behind, which makes Chinese LED display companies face the fierce market competition. It is difficult to grasp the initiative of competition in the international market, and it is often in a more passive position. Secondly, the development of LED standards in the world has been quite large, and its system is relatively mature and perfect, and is basically in sync with the development of the market. The introduction of China's LED standards is relatively backward. The European debt crisis has extended and the overseas LED display market is shrinking. The European debt crisis has slowed economic growth in the euro zone countries and reduced market demand. In response to the European debt crisis, many European countries adopted fiscal austerity policies, and the consequences of fiscal austerity were consumption declines, which in turn would further slow down economic growth and make household consumption shrink.
In addition, different regions of the overseas market also have corresponding constraints. For example, in the Indian market, doing business in India must rely on local agents. The essence is due to the local tax system with India, after entering India, the states and economic zones. The transaction between the two is still subject to VAT and sales tax, resulting in the need to rely on the ladder agency system, relying on local sales channels. This not only consumes a certain amount of human and financial resources, but also has certain risks in terms of finding logistics or building a company.
On the other hand, at present, the country has given certain support in the export tax rebate policy for the LED industry. Since June 2009, the export tax rebate rate for domestic LED full-color display products has been raised from 14% to 17%, and the export tax rebate has become a lot of exports. An important source of income for a business. Taking Easystar as an example, during the reporting period, EasyCard's export tax rebates amounted to RMB119.30 million, RMB25.892 million and RMB868.22 million, respectively, which accounted for a considerable proportion of the company's operating income. However, if the country lowers the export tax rebate rate for related products in the future, the net profit of LED display companies will be seriously affected.
In the case of such risks, if China's LED display companies focus on the development of overseas markets, and ignore the expansion of the domestic market, then if the overseas market crisis is coming, there is no strong local market share to support, how to survive .
The international LED display companies have set up factories in mainland China, and their international marketing service network and brand advantages will cause greater competition for domestic export enterprises. Therefore, if we do not do a good job of maintaining and consolidating the local market, and focusing on overseas market expansion, the local market will be divided by overseas LED display companies.
Non-domestic LED market, "Red Sea", the local market is also Cai Road <br> <br> Today, we talked about the issue Status LED display market, homogeneity, low price war, innovation, and so full of negative word With the LED display industry, I feel that the domestic LED display market has come to a dead end, and people can't help but wonder: Is there really no way out for the domestic LED display market? Obviously not.
First of all, with the development of the domestic economy, the purchasing power of LED displays will also increase. According to the statistics of the Bureau of Statistics, the total retail sales of consumer goods in China increased by 13% in 2014, which was 0.3 and 0.1 percentage points higher than that of the first half of last year and the first three quarters of last year, showing a steady and rising development trend. With the accelerated upgrading of China's consumption structure, residents' demand for high-end consumer products and services is increasing, and high-end consumer markets such as LED displays are expected to accelerate growth.
In addition, on July 1, the China Manufacturing Purchasing Managers Index (PMI) released data showing that the manufacturing PMI in July was 51.7%, up 0.7 percentage points from the previous month, the biggest increase this year. The manufacturing PMI has rebounded for five consecutive months as of July.
Zhao Qinghe, senior statistician of the Service Industry Research Center of the National Bureau of Statistics, said: "The trend of China's manufacturing industry is becoming more stable." He said that since the beginning of this year, with the effects of policy measures such as steady growth, restructuring, benefiting people's livelihood and preventing risks, Gradually, domestic demand gradually picks up, coupled with the sustained recovery of the external economy, external demand has improved, and positive factors for economic development have increased. As a member of China's manufacturing industry, the LED display industry will also have some easing of market competition pressure.
Secondly, China's urbanization process is accelerating, and the LED display market in the second and third tier cities is huge. The Urban White Paper recently published by the National Academy of Science and Technology mentioned that China will complete the coverage of urbanization construction by about 60% by 2020. It is estimated that by 2020, the consumption value of urban households for led products will reach 500 billion yuan.
The acceleration of urbanization will drive the development of infrastructure in urban and rural areas, stimulate investment and stimulate consumption. As a part of the industrial chain of construction and automobile industries, the LED industry will have more market demand as other industries develop, which will stimulate the development of the LED industry and inject a fresh vitality into the LED industry.
As a member of the urban development process, the emergence of led displays has made the city play a different style. The construction of urbanization is inseparable from the improvement and popularization of public infrastructure, environment, management, etc., and will face more energy consumption problems. Therefore, LED application has become the main product in the process of urbanization to beautify the scenery and reduce energy consumption.
According to research, for every 1 percentage point increase in urbanization rate, the per capita annual consumption expenditure of urban residents will increase by 2.0083%. With the increasing development of LED technology, the price of LED display products will also decline, and the continuous popularization of LED display products will prompt the market to mature, and the requirements for outdoor landscapes will be higher and higher. One of the city's landmark products will follow the footsteps of urbanization and penetrate into various class places. It is foreseeable that LED display will become the standard product in urban downtown.
In addition, the government's strong national brand, LED display companies have an advantage in domestic development. All along, China has attached great importance and support to LED energy-saving and environmentally friendly products. Governments across the country have used the “invisible hand†of land, tax rate, rent, labor cost to introduce the LED industry, and also pulled out a large amount of funds to provide support and help. From 2009 to 2010, the subsidies for the purchase of MOCVD in the upstream will reach tens of millions of yuan, and the subsidies for the product expansion project of 5 million yuan will be obtained in the recent period, and the subsidies received by Sanan in 2012 will reach 232 million yuan. . It can be seen that the state and the government are determined to do a good job in this LED industry.
Nowadays, the pace of using LED display products by government departments is accelerating all over the country. This can be seen from the various government tenders. The opening and closing ceremonies of the Youth Olympic Games and the performing arts equipment used in major venues are mostly domestic brands.
All in all, overseas market development is understandable, but in the new situation, the consolidation of the domestic market is particularly important. The source is far from long, and the domestic market will usher in a broader space. Domestic LED display companies, as local Chinese enterprises, can build a better foundation and develop in the longer term.
The focus of domestic LED display companies is gradually shifting overseas, and the international LED industry is gradually shifting to the domestic market. Under such a contrast, then the question is coming. Where should the development focus of domestic LED display companies be placed?
International transfer to the domestic LED industry, the need to develop a rational allocation of overseas share <br> <br> with the international LED industry transfer to the domestic and foreign competitors to establish production bases in the country, the industry is also growing competition, product prices declined. It is undeniable that in the manufacture of LED display chips, foreign LED technology is undoubtedly higher than domestic ones. Under such a situation, the international large-scale LED display companies will turn to China and will give Domestic LED display companies have brought more pressure, and the competitive pressure in the domestic market has also increased. However, because of the competitive pressure, they have chosen to be the “hands-on shopkeeperâ€, making international LED display companies account for the domestic market. It is also not advisable.
“Overseas markets rely on differentiated products for profit, and overseas market homogenization competition, which ultimately leads to low profit margins.†The overseas market is large, but there are certain risks in overseas markets, such as the need for certification, trade barriers, and so on. Nowadays, the emergence of “new foreign trade scams†​​is undoubtedly increasing the risk of overseas trade. However, the headache is that the risk of LED display companies expanding overseas markets is not limited to these.
For traditional Chinese enterprises, it is a certain challenge to do a good job in the international market. First of all, due to the late start of China's LED industry, the understanding of intellectual property rights is not enough. The work on patent application and protection is lagging behind, which makes Chinese LED display companies face the fierce market competition. It is difficult to grasp the initiative of competition in the international market, and it is often in a more passive position. Secondly, the development of LED standards in the world has been quite large, and its system is relatively mature and perfect, and is basically in sync with the development of the market. The introduction of China's LED standards is relatively backward. The European debt crisis has extended and the overseas LED display market is shrinking. The European debt crisis has slowed economic growth in the euro zone countries and reduced market demand. In response to the European debt crisis, many European countries adopted fiscal austerity policies, and the consequences of fiscal austerity were consumption declines, which in turn would further slow down economic growth and make household consumption shrink.
In addition, different regions of the overseas market also have corresponding constraints. For example, in the Indian market, doing business in India must rely on local agents. The essence is due to the local tax system with India, after entering India, the states and economic zones. The transaction between the two is still subject to VAT and sales tax, resulting in the need to rely on the ladder agency system, relying on local sales channels. This not only consumes a certain amount of human and financial resources, but also has certain risks in terms of finding logistics or building a company.
On the other hand, at present, the country has given certain support in the export tax rebate policy for the LED industry. Since June 2009, the export tax rebate rate for domestic LED full-color display products has been raised from 14% to 17%, and the export tax rebate has become a lot of exports. An important source of income for a business. Taking Easystar as an example, during the reporting period, EasyCard's export tax rebates amounted to RMB119.30 million, RMB25.892 million and RMB868.22 million, respectively, which accounted for a considerable proportion of the company's operating income. However, if the country lowers the export tax rebate rate for related products in the future, the net profit of LED display companies will be seriously affected.
In the case of such risks, if China's LED display companies focus on the development of overseas markets, and ignore the expansion of the domestic market, then if the overseas market crisis is coming, there is no strong local market share to support, how to survive .
The international LED display companies have set up factories in mainland China, and their international marketing service network and brand advantages will cause greater competition for domestic export enterprises. Therefore, if we do not do a good job of maintaining and consolidating the local market, and focusing on overseas market expansion, the local market will be divided by overseas LED display companies.
Non-domestic LED market, "Red Sea", the local market is also Cai Road <br> <br> Today, we talked about the issue Status LED display market, homogeneity, low price war, innovation, and so full of negative word With the LED display industry, I feel that the domestic LED display market has come to a dead end, and people can't help but wonder: Is there really no way out for the domestic LED display market? Obviously not.
First of all, with the development of the domestic economy, the purchasing power of LED displays will also increase. According to the statistics of the Bureau of Statistics, the total retail sales of consumer goods in China increased by 13% in 2014, which was 0.3 and 0.1 percentage points higher than that of the first half of last year and the first three quarters of last year, showing a steady and rising development trend. With the accelerated upgrading of China's consumption structure, residents' demand for high-end consumer products and services is increasing, and high-end consumer markets such as LED displays are expected to accelerate growth.
In addition, on July 1, the China Manufacturing Purchasing Managers Index (PMI) released data showing that the manufacturing PMI in July was 51.7%, up 0.7 percentage points from the previous month, the biggest increase this year. The manufacturing PMI has rebounded for five consecutive months as of July.
Zhao Qinghe, senior statistician of the Service Industry Research Center of the National Bureau of Statistics, said: "The trend of China's manufacturing industry is becoming more stable." He said that since the beginning of this year, with the effects of policy measures such as steady growth, restructuring, benefiting people's livelihood and preventing risks, Gradually, domestic demand gradually picks up, coupled with the sustained recovery of the external economy, external demand has improved, and positive factors for economic development have increased. As a member of China's manufacturing industry, the LED display industry will also have some easing of market competition pressure.
Secondly, China's urbanization process is accelerating, and the LED display market in the second and third tier cities is huge. The Urban White Paper recently published by the National Academy of Science and Technology mentioned that China will complete the coverage of urbanization construction by about 60% by 2020. It is estimated that by 2020, the consumption value of urban households for led products will reach 500 billion yuan.
The acceleration of urbanization will drive the development of infrastructure in urban and rural areas, stimulate investment and stimulate consumption. As a part of the industrial chain of construction and automobile industries, the LED industry will have more market demand as other industries develop, which will stimulate the development of the LED industry and inject a fresh vitality into the LED industry.
As a member of the urban development process, the emergence of led displays has made the city play a different style. The construction of urbanization is inseparable from the improvement and popularization of public infrastructure, environment, management, etc., and will face more energy consumption problems. Therefore, LED application has become the main product in the process of urbanization to beautify the scenery and reduce energy consumption.
According to research, for every 1 percentage point increase in urbanization rate, the per capita annual consumption expenditure of urban residents will increase by 2.0083%. With the increasing development of LED technology, the price of LED display products will also decline, and the continuous popularization of LED display products will prompt the market to mature, and the requirements for outdoor landscapes will be higher and higher. One of the city's landmark products will follow the footsteps of urbanization and penetrate into various class places. It is foreseeable that LED display will become the standard product in urban downtown.
In addition, the government's strong national brand, LED display companies have an advantage in domestic development. All along, China has attached great importance and support to LED energy-saving and environmentally friendly products. Governments across the country have used the “invisible hand†of land, tax rate, rent, labor cost to introduce the LED industry, and also pulled out a large amount of funds to provide support and help. From 2009 to 2010, the subsidies for the purchase of MOCVD in the upstream will reach tens of millions of yuan, and the subsidies for the product expansion project of 5 million yuan will be obtained in the recent period, and the subsidies received by Sanan in 2012 will reach 232 million yuan. . It can be seen that the state and the government are determined to do a good job in this LED industry.
Nowadays, the pace of using LED display products by government departments is accelerating all over the country. This can be seen from the various government tenders. The opening and closing ceremonies of the Youth Olympic Games and the performing arts equipment used in major venues are mostly domestic brands.
All in all, overseas market development is understandable, but in the new situation, the consolidation of the domestic market is particularly important. The source is far from long, and the domestic market will usher in a broader space. Domestic LED display companies, as local Chinese enterprises, can build a better foundation and develop in the longer term.
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