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Cross-border LED display industry is a strategy for strategic layout

January 10, 2020 09:16 Source: Photoelectric display font [ Large Middle Small ]

[Digital Audio-Visual Network News] At the just-concluded "Butterfly Change Leapfrog" 2019 HC LED display industry brand event, in addition to the awards and the number of entries recorded, the rise of the number of cross-border companies is also quite impressive. accident. With the increase of people's recognition of LED display, its application scope has gradually expanded and began to penetrate into other commercial display fields. As a result, a number of keen companies in the industry have crossed the LED display industry and seized the opportunity of industry development. Through observation, security companies are major cross-border companies with large scale and strong comprehensive strength, but they only focus on small-pitch LED displays and have no intention to get involved in other LED display fields. Why? Let ’s listen to the next analysis.

Security companies cross-border small-pitch LED display is a strategic layout

The security industry's cross-border LED display industry does not come suddenly but has a track to follow. Security display is mainly used in monitoring and dispatching scenarios. Clear and stable content display is required to easily identify small changes in content. Therefore, large size and high definition requirements are imposed on the display screen. Before the small-pitch rise, LCD and DLP were the mainstream of monitoring display, dominating the world of security display. And when the small-pitch LED display is in mass production, the small-pitch penetrates the monitoring display field through its inherent seamless splicing, delicate and high-definition display, and starts the journey of security copy. At the same time, the rapid entry of leading companies such as Haikang and Dahua has rapidly increased the awareness of small-pitch LED displays, setting off a wave of small-pitch LED displays as security displays. And the security companies that understand the needs of users at the front end, in order to plan the company's long-term development, have been laying out small-pitch LED display-related industries since then.

In recent years, with the development and maturity of small-pitch technology and the acceleration of the construction process of smart cities, the popularity of small-pitch LED displays in the field of security display has gradually increased, and the demand has also increased, increasing its share in the field of security each year. And formed a three-legged situation with LCD, DLP. In addition, the increase in demand is accompanied by the increase in scale and the entry of more and more companies, resulting in a decrease in the cost of small-pitch finished products, intensified competition in the industry, a downward trend in the price of small-pitch unavoidable, and the price advantage of LCD and DLP will gradually disappear. The replacement of LCD and DLP with small-pitch LED displays will also be just around the corner. For the company's long-term planning, planning the strategic layout of small-pitch LED displays will not only help to deal with the impact of future replacement waves in advance, but also increase market share in the security display field in the future, and fully improve the right to speak in the security field. Preparation.

Flexible and flexible cooperation methods to achieve cross-border integration between industries

Cross-borders require not only forward-looking vision and strategic planning, but more importantly, the ability to withstand the test of time costs. Due to the country's vigorous implementation of the "Xueliang Project", various villages and towns across the country have strengthened their security monitoring systems, and the monitoring shows that the market has sunk to villages and towns. The number of villages and towns in China is huge, and monitoring shows that the market will be unlimited. Facing such a good opportunity, security companies speed up the layout of monitoring and display and adjust related channel strategies to seize the huge market; while LED screen companies expect to use their own industrial advantages to shorten the dot pitch and improve the maturity of small-pitch LED display technology. Degree to improve the penetration of small-pitch displays in the security field. However, both have their strengths and weaknesses. Even a company with a strong overall strength can use its own resources to form a dedicated R & D team to develop cross-border products. It also takes a year or two to settle and frequently contact industry professionals. Only then can we find out the relevant technology of the cross-border industry. Security companies have the advantage of channel resources, but LED display technology is not as good as professional LED screen companies; LED screen companies are the opposite. Therefore, some companies choose to integrate the team and technology through mergers and acquisitions, and seek to quickly achieve cross-border industry boundaries. Integration.

The development of the industry is rapidly changing, and the time-varying variables in one or two years are too great to shake the world upside down. Although mergers and acquisitions may be a good strategy, they are also available to large enterprises. Opportunities are rare. Not only large enterprises have a cross-border heart, but small and medium-sized enterprises also have their own aspirations for development. In the case of funds and scale that do not support the establishment of specialized groups and mergers and acquisitions, small and medium-sized enterprises can use their strengths to go hand in hand through strategic cooperation. Security companies can use years of precipitation to expand channels, and LED screen companies can take advantage of the supply chain to provide security companies with cost-effective display terminals that cooperate with each other to maximize efficiency. Cross-borders are not exclusive to large enterprises, and small and medium-sized enterprises can also flexibly change their minds and pursue great opportunities through cooperation.

"Marriage" needs to pay attention to "the door to the door", and seeks the large-scale development of enterprises across borders

Of course, cross-border cooperation of enterprises is not a simple addition, but a careful consideration of the matching degree of the resources, consumer groups and brands of both parties, and focusing on "the door to the door", is likely to play the biggest role in cross-border. First, the resources of both sides are common. The cross-border two brand companies should have similar basic strengths and development directions, and only have commonality in terms of brand, strength, marketing ideas and capabilities, corporate strategy, consumer groups, market position, etc., which can effectively reduce the persuasion of both parties. Communicate, play synergistic effects, and realize the cross-border development role of 1 + 1》 2.

Second, the consumer groups on both sides must overlap. Each segment of each industry has its own consumer group, and each consumer group has its own characteristics. Due to the different industries and products of the two companies that cooperate across the span, their consumer groups are also different. To achieve the effect of strategic cooperation, it is required that the consumer groups on both sides must have overlapping and overlapping.

Furthermore, the word of mouth of the two sides can be superimposed on each other. Industry reputation is accumulated by the product quality or comprehensive strength of an enterprise. It has little to do with the scale and capital of an enterprise. Therefore, having a company's capital and scale does not equal good industry reputation. Therefore, when companies choose cross-border partners, they also need to consider whether the industry reputation of the other party is consistent with their own. When the word of mouth of both parties is equal, it will help to accumulate communication effects, thereby enriching the connotation of the brand and enhancing the overall influence of the brand. However, if the word of mouth difference between the two parties is too large, then word of mouth will likely lean to the lower side, reducing the brand effectiveness of both parties.

Finally, the companies on both sides are non-competitive. Cross-border cooperation enhances the competitive strength of both parties in the common field through the resources of both parties, and realizes the improvement of the brand or product sales of both parties, and achieves a win-win result. Therefore, cross-border cooperation companies need to uphold the spirit of sincere cooperation and grow from each other to achieve a mutually beneficial situation, instead of using the other party as a take-off pedal. Only non-competitive companies can have long-term cooperation.


In summary, due to changes in display methods, companies have to enter unfamiliar industries and deal with the arrival of replacement in advance. For security companies in the hundreds of billions of markets, cross-border entry into LED displays is just one of their strategic layouts to increase the voice of the security industry, so LED screen companies are undoubtedly anxious. Cross-border integration of enterprises will be a major trend. If small and medium-sized enterprises have ambitions, they can also let go through strategic cooperation, but they need to be carefully considered. The above analysis only provides a reference method. Enterprises need to combine themselves, weigh risks, analyze advantages and disadvantages, and make correct decisions that are conducive to enterprise development.

(Edit: bingjiling)

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