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Analysis on the Leasing Market of LED Display Screen in China III

XMOZU 2019-01-26
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With the rise of the LED rental market, LED rental display screen is widely used in large-scale literary and artistic performances (such as Spring Festival Gala), major sports events (such as the 2008 Beijing Olympic Games), National Day parade, large-scale exhibitions and other occasions. In recent years, with the development of China's economy, people's living standards have generally improved, various kinds of literary and artistic performances are prevalent in our country, and various kinds of TV entertainment programs emerge in endlessly, which greatly promotes the prosperity and development of LED display rental market.

As the rental market continues to expand, more display companies are attracted to join, and many large LED display manufacturers participate in the competition in this market. For the market, price is always the most sensitive tool to touch consumers’ nerves. As enterprises “swarm” into the rental market, leading to a sharp decline in the price of the rental screen, the competition in the rental industry has become white-hot.

In 2012, the price war in the rental screen market was a sensation. On June 27, 2012, Zhou Ming held a grand conference for rental customers in Shenzhen, announcing the price reduction measures for the P6.9 rental screen on that day. Two days later, on June 29, Joint Construction and CGX also introduced preferential policies for related products. The price cuts of the two listed companies are like a blockbuster triggering a chain reaction. Four days later, on July 4th, Rio Tinto also announced the price reduction information for leased products. The price reduction of several major enterprises can be said to officially unveil the "price war" in the LED display rental market. Since then, the LED display rental market has entered the era of the most fierce price competition.

Usually, large-scale literary and artistic performance market is an important stage for rental screens to show their skills. However, in August 2013, the Ministry of Propaganda and other five ministries jointly issued a circular to stop luxury extravagance and promote thrift in hosting evenings, aiming at excessive performances, organizers' pursuit of grand occasions, big dances, big production, extravagance and waste, and competition and other undesirable phenomena.

Under the environment of advocating "thrift and diligence" and building "economy-saving" society, the rental market of LED display screen has also changed greatly. The rental market has gradually expanded from high-end to middle and low-end. In other words, LED rental display began to enter the civil market in an all-round way. With the expansion of the market, leasing products have been innovating and developing with the demand of the market, presenting a flourishing situation of contention among hundreds of schools of thought. The leasing screen market has almost become the "battle ground" for LED display enterprises in China.