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Seeing today's industry to make a circle of LED Status Display

 

Seeing today's industry to make a circle of LED Status Display

Closer look at the development of LED display industry these years, long before countries for the supply-side reform, LED display industry has already begun to use market forces in inventory to production, deleveraging, the structural adjustment. Why do I say, because the competition is too intense LED screen industry, the traditional LED display serious excess capacity, price wars between businesses come and go only through stock, and after a round of price war Ebb Tide, a lot of backward production capacity businesses have closed down in the market competition.
If you say that the industry is a traditional Chinese puffiness patients, so the supply-side reform is a good medicine, government policy support is only a means to the outside, but also need a temporary cure. How to start to solve the underlying causes of the supply side is the top priority. So how to solve the problem from the supply side of the underlying causes, and perhaps we can look at the LED display industry is what to do. Coal, iron and steel that different state-owned assets, LED screen industry mostly private, LED display industry in the face of more supply-side reform is to rely on market competition to complete.
But also precisely because of this highly competitive market environment, thus leading to a small pitch LED display this cross-age products appear, because of the small spacing LED display has a high technical threshold, which only led to this field strength enterprises can get involved, we can say a small pitch LED display has not only brought new profit point of LED display enterprises, and also played the role of structural adjustment.
Able to survive the price war of LED display enterprises are having a certain strength of the enterprise. These surviving enterprises listed on the means mergers and acquisitions, financing will undoubtedly further strengthen the industry concentration, increased significantly in recent years the market LED screen enterprises, and expand the scale and achieve the purpose of deleveraging and lower costs. Easy to see, in the spontaneous competition in the market, to the inventory; we went capacity; also plays a restructuring and deleveraging effect.
To production, to inventory, fill short board essentially is to achieve effective re-allocation of resources. The main function should be borne by the market, the Government should not interfere too much. If good production can not win from the competition, backward production capacity and for various reasons can not be eliminated, then China is difficult to adjust the economic structure in place, making it difficult to achieve the development of power conversion to achieve high-quality economic development.
As can be seen from the development of LED display industry, through a number of inferior enterprises out of the market, it will have a number of high-quality companies, and then drive other complementary businesses through these leading companies, then, a good industry ecosystem will be able to build only through market competition in its allocation of resources to make the industry healthy and sustained development.

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