As a large-screen display industry's most traditional high-end solutions, DLP mosaic wall industry in 2016 and did not produce a satisfactory answer. Industry-wide transformation has become the industry consensus. This situation will continue in 2017.
2016 years, "loss" is still the head of the word
DLP splicing industry this round to production capacity, to the inventory cycle began in 2012. In 2015 the industry market turning point, low production capacity and demand to pick up together to bring a small spring. However, starting in 2016, DLP splicing and small pitch LED screen market competition, pressurized "rejuvenation" of the DLP splicing industry. Leading to DLP stitching market bottomed out twice, the industry pattern of deterioration.
In 2016, DLP stitching industry's basic operating data can be summed up with two 10%: the average price fell more than 10%, industry sales area fell more than 10%. Among them, the average price decline is mainly due to increased competition in the industry and the popularity of small pitch LED. Industry sales area is mainly due to the small gap between the LED competition - due to the challenges of this new technology, DLP stitching has in fact become a "pure high-end" market product selection. This leads to the fact that although the total demand for large-screen display is growing, the size of the market segmented into DLP stitching products is declining.
At the same time, many DLP splicing enterprises to actively layout small pitch LED products, but also further compressed DLP stitching living space. In particular, the second generation of small spacing LED screen, COB products and small pitch LED products to p1.2 technology to promote, making the small pitch LED DLP splicing of the alternative to rise to more than 80%.
From the distribution of manufacturers, 2016 "whenever alone rely on DLP splicing product line" enterprises have a loss; comprehensive full display service providers are able to profit in the DLP product line. At the same time, DLP splicing industry shrinking, and further lead to market concentration. 2016 initiative to shrink DLP splicing product line of the enterprise, the majority of the product line loss reduction or losses, the rapid development of enterprises are looking for a new growth point. Rely solely on DLP splicing, and the slow transition of enterprises facing the survival crisis.
2017, the difficulties continue to consider the cycle of superposition effect
In 2016, DLP stitching industry, the main reason is the competitive product competition, the secondary reason is a comprehensive display service providers characterized by the enterprise, an increase of DL splicing supply side of the scale of participation. Both inside and outside the reasons, leading to shrinking market, competitive, price war is inevitable.
DLP splicing 2017 should strengthen the "fine" construction
Although DLP splicing industry is facing greater market challenges, but the industry is not entering a dead end. On the one hand, there is no competing technology now can do 100% of the DLP splicing of the alternative; the other hand, the customer and the market inertia still maintain DLP stitching a relatively large industry basic disk. The two are DLP stitching industry from the internal basis of life.
How to grasp the industrial opportunities under the adversity? The answer lies in the quality of. First, product innovation to keep up. Including products such as 0.2 pitch gap, highlight unit, 80 + large size units are feasible. In the product innovation on the basis of improving the system experience, to seize the traditional market, which is DLP splicing industry must do.
Second, there must be fine customer thinking. That is, from the business to have a choice, take the initiative to give up the long cycle back, the history of money and arrears outstanding customers, the customer is operating in a serious adversity and to the production process, the highly leveraged industries to carefully order. At the same time, accelerate the integration of internal supply process, shorten the supply cycle, reduce inventory, improve business and contract landing speed, to maintain a higher level of corporate cash flow.
Third, to establish a fine application of thinking. Large-screen system can no longer simply as a "hardware to sell", through the increase in functional software, and effectively reinforce the basis of visual applications, to experience the application of quality conquering customers. At the same time, large-screen system must be integrated into the "Internet +" and "smart screen" concept, with information technology, artificial intelligence and Ethernet perspective, rather than the traditional audio-visual system perspective, thinking about the value of large-screen applications, Expand customer acceptance points.
Summarize in one sentence, that is, the future DLP splicing to adapt to the "pure high level" of competition. This pattern will also lead to the industry's non-leading, non-large integrated display service provider brand "declining" and out.
DLP splicing enterprises should be customer needs as the center, redefine the supply system
Throughout the past three years the development of domestic large-screen market, DLP stitching industry, adversity fluctuations, and the rapid increase in demand for the entire market is synchronized. This creates a contradiction: the total market demand is expanding, DLP splicing the road is narrow.
For the industry enterprises, DLP stitching applications to the pure high-end field one-way focus on the "narrow path" should not be the business development of the "narrow road." That is, companies should be the diversity of customer needs, to define their own service capabilities and supply system. To achieve a richer product line, which is the future development of DLP splicing business key.
From 2016 the industry situation, the more simple to rely on DLP splicing a single product line of business, the operating situation is not optimistic. Industry within the comprehensive display service providers, and earlier to make market transformation, the early introduction of small pitch LED product line of the enterprise but in good condition. Also, it is not DLP stitching the market difficult to crush some of the enterprises, but these companies in the product line "single" bet, resulting in its business no room for maneuver.
The future of the big screen market, must show the diversity of demand, technical program diversity, the supply of diversity. Any big screen business positioning, must be the premise of the three pluralism. Even if the enterprise is located in the field of high-end visualization, it should have a "fully diversified supply system". This system includes at least high-end DLP splicing, small pitch LED display technology; centralized processor, distributed processor, network technology under the audio-visual engineering capacity and other signal processing technology; network information push, multi-center distributed content management , Data visual editing system and other software products; for specific industry business, such as transportation, energy, medical, urban management and other hard and soft information interface.
This product system as the center of the "supply" reform, is still DLP splicing, and even the entire big screen industry, "common" task. Including DLP splicing, laser projection, small pitch LED, signal processor, application software, security display and other industries and enterprises, need to have this "multiple supply" thinking.
Look at the direction, DLP stitching industry needs strategic awareness
Over the past three years, DLP splicing business some of the rapid transformation, some hesitant move; some business strength increased, others have disappeared in the public eye. Where are the root causes of these changes? The answer is that the strategies of different firms are different.
That is, look at the same issue, each enterprise to see the size of the difference between the severity. Some companies in the round of production and inventory cycle in 2012, it has been recognized that business "growth point must be diversified"; other companies in the early 2016 wrong to judge "DLP industry has warmed up" - they did not see Large economic cycle uncertainty, as well as small spacing LED raid.
Or that different companies think differently about the problem. Some companies do not have a good grasp of the use of macro-law, the strategic layout of the enterprise development path. These enterprises, but in good times, to "share", but not in advance to plan the transformation and the next growth point. Industry supply and demand cycle, large economic cycle, competing products cycle, these three laws are general business theory, not a particularity. If the industry can from the outset from the top design of the "strategic" consciousness, it will not be in the three cycle fluctuations in the confusion, it will be in different stages of development of the industry are already prepared, such as water.
"Bow to seriously walk, and look up at the direction" is not contradictory. They are two aspects of one thing. Moreover, the correctness of the direction often has a decisive influence. In this regard, the domestic large-screen display industry must have a clear understanding.
First of all, the general direction of the Chinese market is still healthy, the total demand is still in high-speed expansion. Intelligent industrial, social and family processes and large economic structure of the upward superposition, which will inevitably lead to large-screen market demand continues to expand. Second, the Chinese market has become the world's large screen display innovation center, such as laser display, small pitch LED and other industries, the Chinese market share of the global share of more than 6 percent. Third, the Chinese market, large-screen enterprises are to large-scale, integrated, brand development, market competition in a new round of restructuring process.
These characteristics determine the big screen industry in China and the global market, "very different", but also determines the domestic large-screen enterprises must reconstruct their own strategic trajectory, rather than simply copy the international experience in order to compete in the fierce and complex industry success The This special "national conditions" makes the strategic awareness in the domestic market at this stage is particularly important.
In summary, DLP stitching industry difficulties still exist, the challenge still. But this should not be the industry practitioners of the "dead end", through the product and experience innovation, through the supply system innovation, through a higher point of view from the perspective of the big screen industry, DLP splicing business can be out of a characteristic of the transformation of the development of the Road, out of a brilliant future industrial upgrading of the road.
This logic is completely different from the demand for "inventory and capacity" under the simple economic cycle of 2012-2014. 2012 - 214 the core reason for this trough cycle, on the one hand, 09-11 industry capacity increased too fast; the other is the tension of the macroeconomic situation and monetary policy.
Compared with the historical law, the macroeconomic situation in 2017, while stabilizing upward, but the monetary policy back to neutral tight; macroeconomic deleveraging task will lead to demand for the path of the compression. At the same time, the industry's fierce competition, the excess brand out of the process has not yet completed, small distance LED competition is also intensified competition.
Especially small pitch LED products, 2017 will be P1.2 products popular year, but also the first year of COB product heavy volume. Higher standards, the second generation of technology aura, will make a small pitch LED industry DLP splicing can be further enhanced. Moreover, the small gap between the LED industry's internal competition is also increasing, COB and surface paste two camps contest, and the price war will be on the big screen market to form a "spill" effect. That is, the first, small pitch LED is more easy to use public opinion; second, small distance LED price war led to the overall price of large screen market decline; third, COB technology to bring about product awareness. These are DLP stitching industry unfavorable situation.
Or, 2017 DLP stitching industry is facing more than ever "severe" and "complex" adverse situation. The industry's own cycle, the macroeconomic cycle, competing products industry cycle of the three periods of low trough overlap, market participants should take precautions. However, in the industry manufacturers have been aware of the problem in the context of industry losses can be expected to decline.