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Building a good framework for the rental display market
As a segment of the LED display industry with a large market share, the development of rental display has become a pillar of survival for some companies in the industry. With the increasing competition for LED display products, the rental market was once caught in the Red Sea war of low prices. Improving the benign competition order in the leasing market and building a good supply and marketing system for the leasing market have become the common aspirations of display manufacturers and leasing manufacturers.
Lease market dialysis
In general, LED rental displays are mainly used by some professional advertising companies or rental companies to sublease LED displays to units and individuals that need to perform activities. The LED rental display in a broad sense includes both the products provided by the display manufacturer to the leasing manufacturer or the advertiser, as well as the products rented by the leasing company and the advertiser to other units and individuals. Strictly speaking, the two are different categories, and the market characteristics are not the same, but as the overall rental market, the problems are the same.
The appearance of a lease
With the development of media and entertainment, LED display as a background display product for playing video is more and more popular and popular. Whether it is outdoor large screen or indoor screen, LED display has gradually replaced the traditional with absolute advantage. The projection instrument becomes the new playback display.
Due to the irregular development of various stage activities, the demand for LED display usually belongs to one-time consumption or less consumption. The active party hopes not to directly purchase the product, and directly selects different sizes of LED display from an intermediary company according to their own needs. This can save operating costs and save unnecessary trouble. Therefore, the LED display rental industry has developed rapidly and has become a major battleground for the LED display market segment. At present, LED display rental applications mainly include various cultural performances, conferences, corporate celebrations, weddings, exhibitions and various banquets.
Development of leasing
In the 1990s, China's LED display industry began to take off, but the rise of the rental display market from 2006 onwards, the start time is not long, was not a optimistic market segment at the beginning, because the rental display screen to the cabinet The requirements are high, the cost of design and mold opening is large, and the market demand is not large. Therefore, most companies are reluctant to undertake such business. At this time, some medium-sized enterprises with more prominent design advantages are gradually stepping in.
After four or five years of development, the LED display rental market has achieved leap-forward progress, not only has a large number of professional rental companies, but also provided a beautiful stage for every major event and celebration in the prosperous period. Overall, LED rental display screens with China's own brands have experienced four major periods. Before 2007, it was a start-up period. From 2007 to 2010, it was a period of rapid development. In 2011, it entered a stable period. Since 2012, it has been a period of intense competition. Along with this, LED rental display market has undergone many changes, the price has dropped from the earliest 1000 yuan per flat to 300-400 yuan per flat now; the rental manufacturers have countless from the earliest dozens; the payment cycle is from the earliest spot The knot has been delayed until now.
Current status of leasing
Today, China's LED rental display market has changed with the changes in the overall environment of the display industry. Especially in the field of conventional display screens, due to the increase in the number of participating companies, the rapid decline in product prices, and the rising cost of various labor logistics, the current rental display manufacturers and leasing companies are under pressure. At the same time, various problems of renting display products have also come one after another, causing social concern.
First, manufacturing companies have set off price wars.
Since 2011, the price of LED display products has begun to fall wildly. At the same time, the price of LED rental display has also appeared in the situation of Waterloo (see table below).
Table: Take the P6 display as an example, the product price comparison from 2008 to 2012, unit: yuan / square meter
As can be seen from the table, in the short period of five years from 2008 to 2012, the price per square meter of LED rental display dropped to 1/10, a significant drop. In this situation of price kingdom, many companies began to fight the price to ensure their total sales. Several large LED display giants faced the situation of poor sales performance and serious decline in profits in 2012. The pre-borrowing market was in a state of turmoil, and a bloody and hurricane price staggered the first in the LED rental display market.
At the same time, in the past few years, due to the sharp increase in demand in the market, the LED rental display market is extremely hot, and a group of professional LED rental display manufacturers have risen rapidly. At that time, they formed the “Four King Kong†enterprises in the industry. For example, and Lei Ling, Guangxiang, Shijue Guangxu and the already closed Shenzhen big eye, at the same time a number of LED display companies with scale effects have also increased the rental display business, such as Zhou Ming, Lian Jian, Rui Tuo , Mai Rui, Easystar, etc.; of course, there are a number of enterprises, although they do not have the corresponding advantages of large enterprises, but also played a price advantage, and accumulated some markets, such as Tongpu, Decai and so on.
Due to the excessive number of competing companies, a price in the LED rental display market has been extremely hot. Whether it is a listed company or a LED rental display-based company, the price reduction has not only become a major feature of the rental industry but also the entire industry.
Second, the rental market is chaotic.
After experiencing wave after wave of price attacks on manufacturing companies, companies that use display rentals have also started a fierce competition. The rental price of the same product is no longer stable, and the payment cycle of customers is gradually lengthened. The price competition between the two is self-evident. In the same area, the number of LED rental display manufacturers has increased rapidly. The dealers and agents that manufacturing companies are looking for have also begun to seize the market. The increasingly transparent display product prices have forced a considerable portion of the rental companies to sharply reduce their profits.
On the other hand, the current professional LED display leasing companies in the market have achieved rapid growth in quantity, but the overall strength is uneven, there is no corresponding leading enterprise, and leasing companies, LED display manufacturing companies and engineering installers In addition, the lack of industry standards has led to a looser leasing industry and a lack of sense of responsibility.
Again, rental display products have frequent security issues.
In order to seize the market, the second-inferior products began to gradually rise, and even confuse the rental market, laying a safety hazard. Whether it is the display fire, the fall of the masses without any reason, or the light pollution and visual pollution, various security problems have deeply damaged the image of the LED display, and also hindered the healthy development of the industry, and even endangered the lives and property of the people. Safety. LED rental display, its security accountability issues deserve to be studied.