LED large screen has sales but no profit

LED large screens are not uncommon for everyone today. You can see the shadow of LED large screens in buses, supermarkets, stations, and service halls. LED large screens can promote the development of society by promoting information, especially for businesses. For example, the effect of using LED large screens for advertising is really immediate, so many merchants will use other people's LED large screens to advertise, and some will use their own advertising space to advertise themselves. Although today's LED large screens Sales have gone up, but prices are pitifully low. In recent years, some people in the industry often sigh: LED industry is becoming more and more difficult to do now. It can be said that they are only trying to sell white powder, but they are earning money from selling cabbage. It is not unreasonable for people in the industry to pour bitter water like this.

LED, as a clean and low-carbon emerging industry, at the beginning of its rise, due to the relatively low entry threshold and the support of national policies, a large amount of capital poured in, and the industry showed a trend of rapid development. At that time, almost everyone who entered this industry People in the industry can make a lot of money. Taking LED large screen as an example, the profit before 2008 was 30%-70%, and the profit from 2008 to 2010 was 20%-30%. Now, some people have no choice but to say: LED large screen = selling cabbage. It’s fine if there are too many monks, but why are the profits of enterprises getting thinner and thinner while the market share has increased so much? Some people think that this is due to the intensification of industry concentration, coupled with frequent price wars, and vicious competition. , Some screen companies do not hesitate to "lose money" in bloody battles, so money is becoming more and more difficult to earn.

With the further increase in industry concentration, only those listed companies with strong financial strength and economies of scale can make money. In the past, these companies only competed in the high-end market of LED large screens, but now they have begun to focus on the low-end market. picture". In stark contrast to the price of LED large screens, the market share of LED large screens has risen instead of falling, and it is showing a phenomenon of "sesame blooming steadily".

Relevant data also show that from 1.4 billion yuan in 2000 to 33.5 billion yuan in 2015, the market share of LED large screens has increased by 23 times in 15 years. In the future, it is estimated that by 2020, the global LED large screen market size will reach 30 billion US dollars. This view has some truth, but it is not comprehensive.

After all, the sharp decline in the profits of LED large screen companies is not just a matter of small and medium-sized LED large screen companies, including large companies, which is a general trend. The gross profit margin of LED large screens is reduced, and profit shrinking is a problem faced by the entire LED large screen industry. Now the profits of LED large screen companies are generally less than 10%.

So, the problem is back to the original point, where are the profits of LED large screen companies? When our LED large screen companies are fighting for the bright market, fighting price wars, fighting to the death, another "invisible" market is " "Secretly" eating away at the profits of LED large screen companies - it is the bulk assembly market. Sometimes things in the world are so wonderful. When we lament that the profits of LED large screens are getting lower and lower, and the days are getting sadder every day, there are a group of people in the industry who are living happily. As we all know, LED large screens are different from other display products. From the production, sales, installation to after-sales of products, they all have high requirements for professionalism, and they are not something that laymen can fiddle with at will.

After so many years of development, the LED large screen industry has cultivated a group of very professional operation teams. Some of these professional talents have grown up from agents, and some have transformed from LED large screen enterprises. They know all aspects of LED large screen characteristics, links, and industry conditions. On the other hand, with the advancement of technology, especially the technical threshold of large LED screens is getting lower and lower, and its modules, control cards, video processors, etc. can be assembled and spliced ​​at will, which makes the bulk assembly market rapidly developed.

For these agents who have grown up with LED large screen companies, assembling a LED large screen is as simple as we assemble a "computer". Therefore, as terminal sales agents, they are increasingly dissatisfied with purchasing full-screen products, but start to take on projects and do projects by themselves in order to maximize their benefits. Fierce market competition has made LED large-screen companies more fierce in their competition for channels. For LED large-screen companies, these channel distributors with powerful terminal applications are scarce resources in the industry and are the objects of competition.

However, the group of people who have grown into "professionals" are increasingly dissatisfied with being the agent of a certain display company. Everything is based on profit, regardless of loyalty to the company. Whoever gives more will do it for him. "Advocacy". Therefore, in order to consolidate the channels that they have worked hard to build, LED large screen companies can only make profit, profit, and profit. .