Accumulation adjustment marketing strategy plus code lighting IC seeking breakthrough

[Text / high-tech LED reporter Long Zonghui] display is a mature field of LED industry. In recent years, with the decline of LED display prices year by year, "intermediate" manufacturers without brand advantage and no channel advantage have been "shuffled", Shenzhen Yiguang, Shifang Optoelectronics, and Hantang Gaojing have successively reported difficulties in the capital chain and are on the verge of bankruptcy. This will undoubtedly cause panic to the accumulation of such suppliers.

Huang Bingkai, director of product integration for LED display ICs, said in an interview with Gaogong LED that the focus on LED display procurement and production has moved to the mainland since two or three years ago, and more than 70% of the current business is from mainland display manufacturers. But this year, the mainland LED display has closed down, the market is very unstable, and the mainland banks tightened loans, forcing the accumulation and agents have to adjust their strategies. “To ensure that the collection is the highest goal, a more conservative shipping strategy is implemented, which has a certain impact on revenue.” Huang Bingkai said.

Huang Bingkai believes that although large companies with large capital LED display companies such as Chau Ming Technology, Liard, Alto Electronics, and Kyushu Optoelectronics are Evergrande, the bargaining power of large LED display companies has become stronger, leading to accumulation. The unit price of the display IC declined, and the gross profit also declined.

The accumulated display IC has always been positioned at the high end, and the price is relatively high compared to ICs such as Shilanwei, so it is not the first choice for manufacturers of low-end products. The plagiarism in the IC market is very popular, and low-cost competition for similar products can never be eradicated. Although it belongs to different market segments, it also exerts great pressure on the price of accumulated products.

On August 8, Taiwan accumulated its first half of 2013 performance report. Its half-year revenue was NT$1,021 million, down 15.75% year-on-year from 1.12 billion. In the first half of the year, the gross profit was 345 million, down 24.49% from 457 million last year. Gross profit margin also fell to 34% from 38% in the same period last year.

In order to increase the gross profit, the second half of the accumulation will also strengthen the development of new products, such as IC development for the small-pitch display market. “Currently, the small dot spacing market is mainly targeted at specific pipeline fixed installation projects and rental markets,” Huang Bingkai said.

Regarding the view of the accumulation performance in the second half of the year, Huang Bingkai said that in the second half of the general display season, manufacturers will generally stock up one quarter ahead of schedule. At the 2014 Brazil World Cup, there are currently 12 new venues or renovations. These large-scale projects are driving, and display sales are expected to reach the first half of next year. The accumulation hopes to increase the gross profit through the product mix and improve the profitability.

In fact, as early as a few years ago, the accumulation of hope to join the lighting IC business, the formation of multi-product line operations to supplement profitability. “Lighting IC is the main driving force for the growth of future revenue. In 2013, our marketing strategy and product layout have been re-adjusted. It is expected that the operating share of accumulated lighting products will increase significantly in 2014-2015.” Yu Zhongwei, Director of LED Lighting IC Products Said.

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