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On August 15, 2013, Shenzhen Shifang Optoelectronics Co., Ltd. was exposed. The company was insolvent due to fraudulent suppliers of 80 million yuan and arrears of 220 employees for two months. The company was subsequently confirmed to have closed down. Shifang Optoelectronics mainly engages in LED display and other businesses. The company's failure means that two display companies have stopped production in just over a month. The display industry's shuffling and integration are accelerating, and display companies are seeking survival. The way to sustainable development?
GLII believes that display companies can seek mergers and acquisitions opportunities, both can focus on differentiated products or market segments, and three can seek to transform LED lighting. Although there are many roads, but the road to success is destined to be uneven, the future development of display companies is destined to be "difficult to travel"!
Seeking mergers and acquisitions opportunities
The so-called big tree under the tree is good for the cold, the acquisition is a "good home" for many display companies. In recent years, several display companies have been acquired, such as Redio, Mai Rui and so on. Most of the acquired companies have their own business highlights: Redio creative display products have a good reputation in the industry, Mairui Optoelectronics has developed rapidly, and overseas markets have become bigger and stronger. However, for most companies that have not yet been acquired, whether there is a bright spot in business management is doubtful.
Focus on market segments or differentiated products
Focus on market segments, research and develop differentiated products, and then form differentiated competitive advantages or feasible ways, such as the development of small-pitch LED TV products. However, focusing on market segmentation and research and development of new products, first of all, the continuous investment of a large amount of funds is one of the problems. Furthermore, whether the development of future market segments and the demand for differentiated products can be as expected is the second problem. How to solve these two major problems is the key and difficult point.
Seeking transformation of LED lighting
In fact, many domestic displays have already begun to get involved in LED lighting, but there are only a handful of companies that have succeeded in LED lighting. The main reason: For some large-scale display companies, the funds are not difficult, but the cultivation of LED lighting talents, the development and improvement of technology, and the layout and development of related channels are difficult.
For small and medium-sized display companies, in addition to talent, technology, and channel issues, the primary challenge is how to seek sufficient funds to support enterprise transformation.
GLII latest industry research report:
1. "2013 China LED Driver Power Industry Research Report"
2. 2013-2017 China LED Street Light Research Report
3. "2013~2017 LED Indoor Lighting Research Report"
4. 2013-2017 LED Package Bracket Research Report
To purchase the above report, please contact the contact person: Mr. Zhang Tel: hb.
Click to download this issue of high-tech LED production research weekly
View more Gaogong LED Research and Development Weekly
On August 15, 2013, Shenzhen Shifang Optoelectronics Co., Ltd. was exposed. The company was insolvent due to fraudulent suppliers of 80 million yuan and arrears of 220 employees for two months. The company was subsequently confirmed to have closed down. Shifang Optoelectronics mainly engages in LED display and other businesses. The company's failure means that two display companies have stopped production in just over a month. The display industry's shuffling and integration are accelerating, and display companies are seeking survival. The way to sustainable development?
GLII believes that display companies can seek mergers and acquisitions opportunities, both can focus on differentiated products or market segments, and three can seek to transform LED lighting. Although there are many roads, but the road to success is destined to be uneven, the future development of display companies is destined to be "difficult to travel"!
Seeking mergers and acquisitions opportunities
The so-called big tree under the tree is good for the cold, the acquisition is a "good home" for many display companies. In recent years, several display companies have been acquired, such as Redio, Mai Rui and so on. Most of the acquired companies have their own business highlights: Redio creative display products have a good reputation in the industry, Mairui Optoelectronics has developed rapidly, and overseas markets have become bigger and stronger. However, for most companies that have not yet been acquired, whether there is a bright spot in business management is doubtful.
Focus on market segments or differentiated products
Focus on market segments, research and develop differentiated products, and then form differentiated competitive advantages or feasible ways, such as the development of small-pitch LED TV products. However, focusing on market segmentation and research and development of new products, first of all, the continuous investment of a large amount of funds is one of the problems. Furthermore, whether the development of future market segments and the demand for differentiated products can be as expected is the second problem. How to solve these two major problems is the key and difficult point.
Seeking transformation of LED lighting
In fact, many domestic displays have already begun to get involved in LED lighting, but there are only a handful of companies that have succeeded in LED lighting. The main reason: For some large-scale display companies, the funds are not difficult, but the cultivation of LED lighting talents, the development and improvement of technology, and the layout and development of related channels are difficult.
For small and medium-sized display companies, in addition to talent, technology, and channel issues, the primary challenge is how to seek sufficient funds to support enterprise transformation.
GLII latest industry research report:
1. "2013 China LED Driver Power Industry Research Report"
2. 2013-2017 China LED Street Light Research Report
3. "2013~2017 LED Indoor Lighting Research Report"
4. 2013-2017 LED Package Bracket Research Report
To purchase the above report, please contact the contact person: Mr. Zhang Tel: hb.
Click to download this issue of high-tech LED production research weekly
View more Gaogong LED Research and Development Weekly
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