Is it preferable for LED enterprises to infiltrate through the LED business step by step?
Source: Date:2018-08-07

The industry's overcapacity and the fierce competition of price are the impression that the LED industry has given to the outside world in the past few years. How LED enterprises through cross-border breakthrough has become the focus of attention at the moment. Unlike the process of direct mergers and acquisitions, Lehman shares in 2011 through the supply of LED display devices to replace the super advertising exhibition time, and gradually infiltrated into the sports industry. However, at present, enterprises in the LED industry are at a loss to cross boundaries. Some enterprises cross boundary is an inadvertent move. Peng Jie, Secretary General of the LED branch of Guangdong electric chamber of Commerce, analyses, "these enterprises are still developing, the effect of transformation needs to be observed." In 2011, Lehman's dual main business strategy was intended to replace the previous fixed ad board with LED display screen, which could enhance its commercial value and publicity. At that time, Lehman became the official partner in China and the only LED screen supplier with the way of resource replacement. The reporter learned that in fact Lehman did not particularly want to extend to sports. Of course, China Super cooperation is an opportunity, said Lehman vice president and director of the board, "we take this opportunity to gain part of the advertising time in the premier league matches." Because we considered Lehman's brand to be more famous and influential abroad at that time, in order to raise Lehman's popularity at home, we did not sell out in the first year of the right to get advertising, and all of the advertising time was used by Lehman's own advertising. " In the next two years, China super company saw the commercial value of the LED display instead of the fixed advertising board, and repurchased some of the advertising time to Lehman. It is understood that Lehman clearly proposed to the development of the sports industry, by the end of 2011, the company through repeated demonstration and analysis, that the sports industry can expand the space, there are many commercial opportunities, so that into the sports industry. In the evening of August 19, 2015, the Lehman board announced that it would change the securities for short by Lehman optoelectronic to Lehman shares in order to reflect its dual main business strategy. According to public information, Lehman, who sponsored China's Super League in 2011, and sponsored Zhong Jia in 2014, began to complete the overall layout of the sports industry, named the Portuguese Professional Football League, the Lehman Kai Xing sports culture fund, Lehman media, and the second largest sports marketing company in the world, the Swiss sports media. Group and so on. In addition to the future prospects for the sports industry, the establishment of Lehman's dual main business strategy has a great relationship with the status of the LED industry. After the LED industry experienced an explosive growth from 2008 to 2010, with a lot of capital and foreign capital in and outside the industry, the whole industry competition was very fierce from 2011 to 2013, so the performance of the listed companies in the LED industry was not very good at that time. The Lehman annual report showed that the company's operating profit was 34 million 871 thousand and 800 yuan in 2011, a year-on-year decline of 18.70%, and net profit of 33 million 109 thousand and 200 yuan, a year-on-year decline of 15.03%. However, it is important to note that in 2015, the LED industry accounted for 89.99% of the business income of Lehman shares, and the sports industry accounted for 10.01%. Therefore, the layout of the sports industry also needed a continuous investment process. The transformation effect to be observed Peng Jie said that the LED enterprise cross-border, is also based on the current analysis of the industry to make the corresponding decision, overcapacity and price competition is fierce, is the problem that enterprises need to face. In view of the transformation of enterprises in the LED industry, one insider told reporters directly from the LED industry to another industry, which may be related to its own bottlenecks in the development of the LED industry. Lehman's way to infiltrate into another industry is preferable with its own LED business. "From the way Lehman intervenes in the sports industry, it should be a successful process, in which there is a relationship between business synergy and undertaking, not a completely new field," he said. Relative to Lehman's "inadvertent" move in the sports industry, other enterprises engaged in LED, in the choice of cross-border industries, will face the situation similar to the LED industry? Peng Jie believes that, as long as the industry has profit, there will be a relative surplus of problems, especially in many low threshold areas. In those high - tech, hard - to - enter industries, enterprises lack enthusiasm for investment. In the face of this situation, there is no good way to solve the problem at present, only through market competition, some enterprises will become the mainstay of the industry. "Although a number of LED enterprises have made a corresponding layout in the cross border area, they are still developing, and the results are not the time to be determined." Peng Jie said.

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