How do LED display manufacturers stand out in the Matthew effect


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The so-called Matthew effect can be summarized as the phenomenon of “the stronger the stronger, the weaker the weaker” in market economic activities. It reflects a common phenomenon in today’s society, that is, winner-take-all.

In the LED display industry, two years ago, it can be said that “the stronger the stronger, the weaker the weaker” phenomenon is very obvious, but now, the process of industrial transformation and upgrading is accelerating, the impact of the last market cold wave has been suspended.

At the same time, it fully shows that China’s LED display industry has established a relatively perfect commercial competition system after decades of development and precipitation. Two of them can not be surmounted by any innovation, one is the supply chain innovation system with product as the core, the other is the rapid distribution system with channel as the core.

However, in the face of the more complex and changeable market competition environment, these are not enough to fully support future challenges. For all LED display manufacturers, it is necessary to reconstruct a new system and new path which is more suitable for current industry research and development, manufacturing and even market, so as to create new business means and ideas.

Looking at the transformation and upgrading of LED display manufacturers in recent years, although also aware of their own problems and shortcomings. However, the old faults of impetuosity and speculation have not been eliminated. The most intuitive feeling is that the low-price war is spreading from the low-end market to the high-end market. In essence, many LED screen enterprises are not confident enough and unstable in the innovation investment of products and technologies, showing the repetition and hesitation of “three steps and two steps”, which ultimately leads to the breakthroughs in product technology of the entire Chinese LED display industry except for small spacing, which is also the root of the flooding of homogenization competition in the entire terminal product market.

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