The development of China’s LED display screen industry has only been over a decade, and it has accounted for over 90% of the world’s manufacturing sector. It is undoubtedly one of the business cards of Chinese manufacturing, but it has not been able to get rid of it.
B20 is an important platform for the international business community to participate in global economic governance and international economic and trade rulemaking. The main content of annual work is to hold topic working group meetings and summits, to conduct in-depth discussions on key issues of global economic growth, covering global economic development hotspots such as financial system reform, trade, investment, energy, infrastructure, employment, anti-corruption, etc., and ultimately form conclusions and submit policy recommendations to the G20 summit, Provide suggestions and suggestions for promoting strong, balanced, and sustainable growth of the global economy.
In the keynote speech of the B20 Summit, President Xi Jinping first gave a summary of China’s development status and the process of reform and opening up, which responded to an important question of whether China’s economic growth can continue to grow steadily. The world economy is currently facing difficulties such as a lack of motivation, and China’s hosting of this G20 summit is to identify problems for the world economy and propose a “prescription”.
In the past five years, most display screen manufacturing companies in China have been in a passive situation. The crazy price war has led to a continuous decrease in gross profit margin, but labor costs continue to rise. At one point, various bankruptcy waves and mergers surged. LED stage rental screens are a niche market in the entire display screen industry. In the past 5 years, most of the professional manufacturing enterprises for stage rental screens have been acquired or merged, and there are only 6-7 brand enterprises that are still relatively healthy and developing independently. If a standard is set based on a turnover of 400 million, there may only be 2 companies that meet this standard, and it is not easy for Lei Ling to become one of them.
We all know that since last week, another wave of rising prices for LED display screen raw materials has hit, causing the industry to go crazy. Lowering prices means lowering quality, and increasing prices is not easy for customers to understand. At the same time, many display screen companies are under great pressure. Is there an end to the price war and where is the future path for LED rental screen companies? This issue seems to have become a mystery, accompanied by the acquisition of an old rental screen company in Shanghai.
Of course, being acquired may not necessarily be a bad thing, but from the entire case, it can be seen that most of the acquired owners were forced to do so. If control is taken away, the company’s strategy cannot continue and will have a significant impact on the direction of operations that will follow. Drawing on the experience of the Chinese mobile phone industry, there are many malignant acquisition cases. In the end, both parties often lose, and the fate of the industry becomes a game of capital.
How can Made in China go? Xi Dada said that we need to innovate, be open, and use the determination of a strong man to break his wrist to attack the stubborn disease that has accumulated for many years. In the previous article, we discussed that there is no way out in price wars, and suppliers, screen manufacturers, and screen renters are all victims. How can LED display companies go? We also need to extend this idea.
Products need to be innovative, business models need to be innovative, and cooperation methods need to be open