Industry concentration is the most basic and most important factor in determining the market structure. It embodies the degree of competition and monopoly in the market. The most commonly used concentration measurement indicators have industry concentration ratios. The industry concentration ratio (CRn index) refers to the total market share of the top N largest companies in the relevant market in the industry. For example, CR8 means that the eight largest companies have this relevant market share. According to the American economist Bain and the Ministry of International Trade and Industry of Japan, the industrial market structure is roughly divided into two categories: oligopoly (CR8 ≥ 40) and competitive (CR8 < 40%). Among them, the oligopoly type is subdivided into extremely high oligopoly (CR8 ≥ 70%) and low concentration oligopoly (40% ≤ CR8 < 70%); competition is subdivided into low concentration competition (20% ≤ CR8 < 40) %) and dispersion competitive (CR8 <20%). We expect that the process of China's LED display industry's decentralized competition (CR8<20%) to low concentration competition (20%≤CR8<40%) will be further accelerated, and the process may span only 2-3 years. . By the end of 2011, there were about 1,210 LED display manufacturers in China, and the output value of LED displays reached 21.9 billion yuan. It is expected that by 2015 China's display market will reach an output value of 45-50 billion. With the maturity of display technology and its widespread application, China's second- and third-tier cities will be the new growth engine for LED display market demand in the future. On the one hand, the cruel survival of the fittest game in the process of accelerating the process of the industry; on the one hand, the feast of market demand growth and the opportunity to regain the position, the enterprise VS market will continue to renew the ice and fire. Channel battle is at the time For most companies, the process of growth is to find their core competitiveness in the continuous market division of labor. Former Royal Mail Chairman Alan Leighton has warned that in times of uncertainty, good companies need to be focused, active and decisive, rather than implementing an ostrich policy or a wait-and-see strategy. From the current competition level of the domestic LED display industry, it is still basically in the early stage of product competition. The key indicators of competition are reflected in: price, quality, delivery, after-sales service, etc. The price elements are particularly prominent at this stage. With the further intensification of market competition, the competitive advantages of the industry leaders at the product factor level (quality, price, delivery, service, etc.) will become more and more consistent, and channel competition will begin to move forward, relying on several sales personnel. The sales model of the single-handed gang will begin to transform into a systematic and specialized channel operation.
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China LED display company VS market: ice and fire two days
In every industrial process, the jungle law of survival of the fittest is an eternal theme. Looking back at 2011, China's LED display industry has experienced the most severe baptism in an industrial process. A group of industry pioneers have become martyrs, and a number of LED display companies are still on the verge of survival (reorganization and restructuring is a problem), a group of rookies borrowing capital market has gradually become a leader.