LED display rental market price war is completely started


The LED display rental market has developed rapidly over the past four or five years. It has not only made a large number of professional rental companies, but also provided a beautiful stage for every large-scale event celebration in Shengshi China, perfecting the society for singing and dancing. Gift.
However, as an electronic product, LED display has its own commercial game rules and development bottlenecks. In the hot July, a brilliant final battle finally began. The large-scale leasing company’s large-scale purchase display led to serious equipment surplus. The decline in the price of the screen led to the simultaneous decline in the rental price. Several major LED display giants faced the expected situation of poor sales performance and serious decline in profits in 2012, and the rental market was in a state of stagnation. The price of wind is the first to be launched in the LED rental display market. On June 27, 2012, Zhouming Co., Ltd. held a press conference for leasing customers in Shenzhen, and invited major customers from all over the world to announce the preferential price P6.9 rental screen at 0.286 yuan/point on the day of the meeting. P4.8 lease Screen 0.311 yuan / point. After the meeting, the company announced that there were nearly 80 million intent contracts on the day of the meeting. This information shocked the entire display industry. On June 29, two days later, Lianjian and Guangxiang also released the wind and announced the price of the company. The same can be done, and can be released, as well as a gift (a small amount of P6.9 spot screen) can be sent.
The price cuts of the two listed companies are like a blockbuster chain reaction. Four days later, on July 4th, another listed company in the LED display industry, Ruituo, showed that the massive price reduction information was almost transmitted to all the display industry salesmen and rental customers: P4 rental screen 0.215 yuan / point, P5 rental screen 0.225 Yuan / point, P6 rental screen 0.248 yuan / point, and all tax-included, this post-production measures can be said to be catching cockroaches, the oriole is behind. As a result, the first public price war in the history of the Big Three in the LED display industry has started.
I. LED rental market analysis The LED display rental market started in 2008, and the start-up time is not long. It is not a optimistic market segment. The rental display has high requirements on the cabinet, and the design and mold opening costs are high. The market demand is not large, so most companies are reluctant to undertake such business. At this time, some companies with poor business capabilities but structural design advantages have begun to invest in this area (such as Bigeye, Guangxiang, Leiling). Become synonymous with rental screens,). After that, most of the display companies with a certain scale (especially Zhou Ming, Lian Jian, Rui Tuo, Yi Shi Da, Mai Rui, Chuang Xian, etc.) began to enter the rental market and got a share. Since the rent (such as P6) is above 600 yuan/square, the rental company is not sensitive to the price when purchasing the screen. At this time, it is mainly the convenience and aesthetic competition of the die-cast aluminum box (ie, structural competition).
The price of LED rental screen is much more expensive than that of engineering screens, but the good rental income has induced a large number of young entrepreneurs to compete in the crazy display of display rental. At one time, LED rental companies are surging and fascinating. However, most of the companies engaged in leasing are not strong, and the leasing industry is not a big circle. The people engaged in display leasing are colluding with each other. At this time, LED manufacturing companies have emerged as a group of companies that use lending as a means of competition (such as joint construction, large Eyes, Guangxiang, Leiling, Mai Rui), these companies should still have a large number of book receivables. At this time, the competition has entered the stage of competition between the structure of the cabinet and the guts of the loan.
The rental display of a P6 is about 1500 yuan/flat in 2008, about 1,200 yuan/flat in 2009, 800 yuan/flat in 2010, and 500 yuan in 2011. By the beginning of 2012, most places have dropped to 250. Yuan/flat. At the same time, in the second half of 2011 and the first half of 2012, the number of display screens for rental increased by three times in the whole country, and the rent of the P6 rental screen in 2012 was around 150 yuan. As a result, the high-cost die-cast aluminum box is about to fade out of the market, and the LED rental screen is transformed from the competition of the box structure and the guts.
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Second, the analysis of LED rental display manufacturing enterprises Due to the huge market demand, enterprises with sales of more than 20 million are almost producing rental screens themselves. It is divided into three types: 1, large eye, Lei Ling, Guangxiang, Redeo, Shijue, Huiming and other enterprises have become synonymous with rental screens, and have laid down a team of professional design, production and sales of LED rental screens. , formed their own advantages in the design of the box; 2, Zhou Ming, Lianjian, Ruituo, Mai Rui, Easystar, Liard, Regent and other enterprises, although not professionally producing rental screens, but use their own The scale advantage has also designed the corresponding rental box, and also obtained a certain share of the business from the rental market; 3, Cres, Xincai, Huijiarui, Tongpu, Decai, Haobo, Kemeixin and other companies have not leased Box, but its small size has a price advantage, and also sells a certain amount of rental screen.
Due to the large number of companies producing rental screens, the rental cabinets are full of patterns, each family has its own sample, and the price and quality are also very different. The entire rental screen market is a mess. It is also this kind of chaos that leads to too much disorder and opacity. This kind of chaos is also the root cause of these companies making money. LED display is ultimately an electronic product, and must follow the commercial game rules of electronic products, that is, the final freeze and monopoly, price competition is only the last lore weapon.
Third, the strength and mode analysis of the three LED display giants Ruituo became a wholly-owned subsidiary of listed companies in 2009, Chau Ming and Lianjian listed on the GEM in 2011, which is the largest factory area in Shenzhen, the strongest sales team, sales The Big Three and the most widely recognized Big Three. It is also the dominance of these three companies in the LED display industry, and even pursue the monopoly of the industry. Therefore, the final direct killing and confrontation of the Big Three is only a matter of time.
Chau Ming shares: listed in 2011, rich in wealth, young and prosperous, is the dark horse of the LED display industry, is also one of the most successful companies, the existing more than 30,000 square meters of factory buildings, there are also good rental boxes to the market. However, in 2011, the sales performance of the display screen was only more than 4 billion. In the first half of 2012, the performance of the display industry further fell sharply. In addition, the betrayal of the middlemen in the local area completely relied on the sales model of the channel to enter the predicament. The situation is not optimistic, and it is these reasons that are forced. Zhou Ming took the lead in price cuts in July, thus provoking this round of price wars.
Lianjian Optoelectronics: one of the earliest companies in the LED display industry. It was listed in 2011 and has a good brand image. In 2011, the sales performance exceeded 7 billion yuan. The company has more than 30,000 square meters of factory buildings. The leasing market has a place, and there is a good rental box. It has seized a large part of the leasing customers through lending. However, due to the competition for lending, there are a large number of book receivables, and at the same time, it has just listed, and has the same performance pressure as Zhou Ming. Therefore, this joint construction price war is not only to protect the performance, but also to protect the market, Lianjian and Guangxiang have a large number of pre-account receivables, and now if the price is not timely, it will face huge receivables. Or the challenge of returning.
Ruituo shows: 16 years of experience in display manufacturing. In 2009, it was wholly incorporated into Guangdong's top ten enterprises, Dehao Runda (002005). It is the largest display screen industry with the largest export and the largest participation in large-scale national events. enterprise. In recent years, the focus has been on the construction of the world's largest LED display production base in Wuhu, and the LED light-emitting chip production base has also been established in Dalian. Ruituo has become the only large enterprise in the display industry that integrates LED chip production, LED packaging and LED display manufacturing industry chain. It has been painstakingly managed and prepared for many years, and chose to invest in the rental market by Zhou Ming, Lian Jian, Rui Tuo. The price war of the Big Three is just the right time.
The price war of the Big Three in the LED rental market will accelerate the reshuffle of the LED display industry, and its impact is extremely far-reaching. But this is only the first round of the price war. The good play is still behind. At this time, it is estimated that there are still more than 15 gross profit (financial standard of listed companies), which is not worthy of shopping. This is just the first round of heavyweight showdown of the indoor full color screen, and the price war of the outdoor full color screen will follow. After the intensive preparations of the Big Three, more intense competition is expected to be staged at the end of July, and the major reshuffle of the display industry will be completed by the end of 2012. The direct results are as follows:
1) The original batch of professional leasing companies will inevitably be in trouble. First, the company is not large in scale and unable to compete; second, it is difficult to recover the money that was released when the price was high; the third is to increase the difficulty of accepting new lease orders. There are no engineering projects. The killing of the Big Three first stifled its development and directly threatened its survival.
2) Through this battle, the overlord of indoor full-color screen will be destined to be produced only in these three giants. It is difficult for other companies to follow up. From the competition of this display to the high-end competition of comprehensive strength such as capital, scale and production capacity. A large number of display companies will fade out of history and ruin other companies' dreams of going public by expanding sales. The Big Three will continue to grow and develop in a short period of time, but the situation facing other companies will become more and more serious.
3) The price war will be accompanied by the closure of the vision light. The LED display raw material supplier must be on the needle and felt, and the purchase of goods will be intensified. This will further accelerate the collapse of a number of display companies that lack competitiveness. A deep reshuffle of the LED display industry will be completed quickly.

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