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Focus on LED display industry (status and thinking)
- Mar 24, 2018 -

Behind the homogeneity is the weakness of the company’s product technology and marketing innovation capabilities.

Homogenization competition is a common competition stage or state in the process of industrialization in all countries of the world, especially for a post-industrial industrialized country like China (manufacturing power is still in the process of industrialization), and advanced technology is used by the first-timers. Controlling (patented technical barriers), following, imitating, and copycating have been the most influential keywords in the corporate world since China's reform and opening up. The homogenization competition has also been particularly prominent. Looking at the history of marketing in China for more than 30 years, the homogenization competition has always been a topic that cannot be relied upon in the development of many industries or industries.

In the process of corporate marketing development, homogenous competition has spawned the birth and development of "brand science". The strategy of cracking down on homogenous competition is to create brand personality, build brand image, achieve product differentiation, and price competition. To the value war.

For Chinese LED display companies, the homogeneity is behind the weakness of the company's product technology and marketing innovation capabilities. From the technical point of view, many invention patents of the LED industry are in the hands of foreigners. In the international market competition, many export-oriented LED companies also fall into the barriers of technical barriers. China is a big manufacturer of LED display screens, but it only occupies the lowest end of the entire value chain. In the domestic market, there are many competitors in the industry, and the product differentiation industry has become more and more useless. The road to technological innovation is again Slightly distant, these are all objective facts; but from the perspective of business operations and marketing innovation, the current homogenous competition in the LED industry is not a dead end.

Crack the current China LED display industry homogenization competition difficulties

The essence of marketing is not only to meet customer needs, but more importantly, how to effectively defeat and surpass competitors in the competition. The author stressed in the article “Thinking about the development strategy of Chinese LED display companies”: For individuals, it is necessary to deeply understand the current situation of the industry in which they are present, and consider how to build a company based on the status quo and development trends. Competitiveness, how to be invincible in the competition.

After nearly 20 years of development, China's LED industry has achieved rapid development, especially in the past eight to ten years. LED display screens, as a relatively mature segment of the LED industry, are still in the initial stage of industry development. This is based on the following points:

 1, the market access threshold is low

 2, the market has not yet formed a strong brand square

 3, price war is the main means of competition

Businesses have a life cycle, products have a life cycle, and industries do. Each industry's different stages of development, the use of marketing strategies will be different, do not respect the basic rules of the industry at all stages of development, the implication of the transplant from the West's marketing theory, after all, attributed to no law but not law, this is the author We do not emphasize the reason why companies are going to engage in so-called brand building at this stage. Of course, the author does not deny the importance and feasibility of brand building. In particular, building the BTOB (industrial product marketing) brand itself is a subject worthy of in-depth research. The author will also actively elaborate in the following series of articles.

Grasping the different stages of the development of the entire industry, we can effectively find the most effective means and methods to solve the current homogenous competition predicament. The author once suggested that the enterprise is active in the article “China's LED display companies compete for channels”. The game "channel war".

How to solve the current Chinese LED display industry homogenization competition predicament? The author tried to provide several reference paths for discussion.

1, scale break: According to xxLED Industry Research Institute data show that: As of the end of 2011, there are about 1,210 LED display production enterprises in China, with an LED display output value of 21.9 billion yuan. Small scale and low industry concentration are the true reflections of the current status of China's LED display industry. At present, there is a kind of argument in the industry that does not want to achieve scale development. This is actually a misunderstanding of the scale effect. There is no big issue. How can we talk about being strong and "strong" and "big" can achieve "powerful." In the current state of market competition, it will take the lead in realizing scale leapfrogging, leapfrogging the primary stage of corporate development, becoming the forefront of the industry, seizing the commanding scale, effectively gathering favorable resources (such as capital and suppliers), and surpassing competitors and companies. The future development lays a favorable situation and realizes the Matthew effect. The strong is always strong.

2. Marketing Breakthrough: The core of marketing breaks lies in the “partition” and “integration” (ie, marketing model) of marketing mix 6P (products, prices, channels, promotions, power, public relations), based on industry development stages and the status quo of the entire industry. Based on the competition, we will actively seek for breakthroughs. This is also the original intention of the author when he wrote the article "China's LED Display Companies Competing for Channel Battle." In the course of more than 30 years of reform and development, Chinese companies in the process of competition with foreign companies, such as: price wars, channel warfare, advertising warfare, through a combination of innovative marketing mixes, in the absence of strong technology and no strong capital. Many strategies such as terminal warfare, stubbornly survived and developed. As far as the current Chinese LED display industry is concerned, the overall industry marketing level is still very weak. As an individual in the eco-competition system, the company takes the lead in marketing innovation and makes a small step forward, and may stride a big step.

3, service breaks: product homogeneity, the customer to the price as the main purchasing criteria, loyalty at all. We know that goods have two attributes: value and use value, and price is the monetary reaction of value. In the "China LED display business development strategy thinking" article, the author explained the current LED display products, the main elements of competition are: price, quality, delivery, service in four areas. Chinese LED display manufacturers, for end users (such as media advertising companies, etc.) or middlemen (such as engineering channels, etc.), can not simply provide some splicing modules, but should be upgraded to provide customers with a complete solution The plan, which is also the "service" element I want to describe, such as: pre-sales engineering design, installation, technical guidance, such as channel project providers to provide bidding advice, marketing and business training, etc., now there are some led display Manufacturers are awakened on the "service" elements, but they still lack system planning, implementation strategies, and organizational guarantees. From a single product to a complete solution to enhance product value, we can effectively increase customer stickiness and loyalty, and break the only price theory.