It is difficult for small and medium-sized enterprises with LED display screens to obtain financing
Most LED display screens are small and medium-sized enterprises, and it is difficult for cash flow and collateral to pass the review of bank loans. If you use guarantee companies and small loan companies to indirectly obtain bank funds, you may even be forced to accept some almost harsh requirements from banks, which will undoubtedly increase financing costs and operational risks. In order to maintain operations, companies can only lend money to customers and then rely on credit to provide credit to suppliers. Once the company's sales market is unstable or its profit margins decline, product quality will deteriorate. If suppliers cannot meet customer requirements, the company's repayment ability and credit will be shaken. On the one hand, they will be out of stock and on the other hand, the company will collapse. Looking back at the history of the collapse of LED display screens, we can find that not only the collapse of billion-yuan companies such as Yiguang, Vision Light, Haobo Optoelectronics, and Big Vision was due to triangular debt.
Moderate use of financial leverage will help some companies that lack funds start smoothly when the entire industry is healthy. However, in the current business environment, due to the opaque information between supply and demand, companies are undoubtedly betting heavily on tomorrow by lending money to customers. With the lessons learned from Shenzhen Yiguang, Vision Light, Haobo Optoelectronics, etc., many LED display companies are now beginning to pay attention to their financial health and no longer blindly lend money for sales performance.
2013 was an extremely heroic year for LED display screens. In this way, it is naturally inseparable from the wave of bankruptcies of companies. Following Vision Light, Big Vision, and Haobo Optoelectronics, Shenzhen Yiguang Technology Co., Ltd. became another LED display company that went bankrupt in Shenzhen. A lesson for the past and a guide for the future. Analyzing several companies that went bankrupt, The conclusions drawn are very similar: price wars, triangular debt, and product homogeneity are the three main reasons for the collapse of these companies.
In view of the financing difficulties of LED display companies, some companies, banks and government agencies have also made some attempts to solve this problem: some companies are preparing to establish an information sharing platform to blacklist some dishonest customers to control risks; some banks have joined hands with B2B websites to innovate financial models. The specific model is: B2B industry websites that are familiar with the business conditions of the company act as a third party to recommend small and medium-sized enterprises with loan needs, and then banks issue loans to enterprises based on the specific conditions of cooperation between small and medium-sized enterprises and B2B websites; in order to solve the financing problems of high-tech enterprises, the state has launched the New Third Board. Only LED display companies that meet the conditions of outstanding main business, sound corporate governance structure, and standardized operations can apply to be listed on the New Third Board.
How to break through bottlenecks and seek development
Create high-quality products to break through tight siege
When LED companies make products, they do not necessarily have to be comprehensive and comprehensive. If you have everything, you must form your own unique style and characteristic products, and drive the sales of other products through one or two flagship products. Characteristics of the lighting industry Even though lamps will be applied to all walks of life, different application fields have different requirements for lamps. Even in the same field, different lighting needs require different types and parameters of lamps. Therefore, if a company wants to cover all types of lamps, it will inevitably distract the company's focus. It will be difficult to make a refined product, and it will be difficult to form its own unique competitiveness in a certain aspect. Alibaba's successful experience is very convincing. Alibaba focuses on Tmall and Taobao, two very popular brands, and then expands and strengthens the market, achieving great success. In the final analysis, the most important thing is that product positioning must be accurate. Only by identifying product positioning can we improve market competitiveness.
With the help of the shoulders of giants
Some experts have suggested that small and medium-sized enterprises can provide supporting services for large companies and brands through parasitism, and provide OEM and ODM services. Small and medium-sized enterprises can strengthen their own supporting capabilities, win orders from large enterprises, rely on big trees to develop and seek protection. Umbrella, stabilize sales performance and ensure survival in the melee. Of course, the leverage of LED companies does not only mean getting closer to big brands and big companies. In fact, companies that have their own unique advantages in products, channels, technology, and innovation capabilities and can complement or achieve strong alliances with themselves are also good choices as strategic partners. If both parties complement each other's strengths and reach consensus, there will be room for development of such cooperation.
consolidate mergers and acquisitions. The Central Economic Work Conference held at the end of 2012 proposed to resolve the problem of overcapacity as the focus of next year's work, and proposed to promote corporate mergers and reorganizations focusing on the automobile, steel, electronic information, medicine, agricultural industrialization and other industries. In 2013, there have been many mergers and acquisitions in the LED industry. Therefore, industrial integration will definitely expand in 2014.
It should be pointed out that in mergers and reorganizations, the alliance between several large enterprises has accelerated the merger and integration trend in the industry. Eliminating and merging backward production capacity, clearing up the market environment, and forming several leading enterprises with domestic and international competitiveness are inevitable trends in future industrial development. Struggling in a market where thousands of companies compete will test a company's courage and strength. Only by continuously attaching importance to talent accumulation, creating a good R&D environment, and constantly refining and strengthening its products can an enterprise resist being defeated by other competitors and continue to develop, consolidate, and become stronger in its own product fields and markets.
ANNA