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At present, although the competition of LED electronic display in mainland China is fierce, it is still in the early stage. The key indicators of competition are reflected in price, quality, delivery period and after-sales service. The price elements are particularly prominent at this stage.
In 2012, the price of LED display continued to decline, with a decrease of 15-20 in 2011. The reason is that large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars. The decline in prices further narrowed the gross margin. According to industry insiders, the gross profit margin of LED-based electronic display manufacturers, which are mainly channel-based, has dropped to 10-15, and the gross profit margin of engineering channels is still above 20.
The LED electronic display industry has entered the integration period, and some small and medium-sized enterprises will gradually be eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to take advantage of the strength of the capital market and the company's own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industrial concentration of LED electronic display will increase rapidly.
As the LED electronic display industry has entered a mature stage, its market size will maintain a steady growth. Some insiders expect that the scale of LED electronic display market will remain at 10-20 in the next few years. Future LED electronic display profit growth will mainly come from traditional inkjet, neon, billboard replacement market, as well as high-definition, high-definition led electronic display market such as high-definition, 3D, and intelligent.