Three 5 years have witnessed the decline and growth of powerful colors

At a time when China's LED display companies are emerging on the world stage, Qiangqiang Giant Color claims to be the king of shipments although it is not listed. However, its development process has exposed many problems, which is worth in-depth exploration.
Being on the national manufacturing individual championship list in March 2024 may seem to be an honor, but in fact there is a complex development trajectory hidden behind it. Looking back on its four five-year history, it started hard in the first five years from a factory of only 100 square meters in Quanzhou. Although there were subsequent measures such as introducing assembly lines, launching P10 products and preparing for a Xiamen production base, it was proposed to create a world-class great company at that time. The grand goal of the company seems to be a bit out of touch with reality, and its declared mission is like a castle in the air, lacking a solid foundation and in-depth strategic considerations.

Entering the second five years, Qiangli Giant Color has established the" channel as the king" strategy, built a three-kilometer service circle and implemented a dealer distribution model. It has indeed achieved a certain scale in channel expansion and has a large number of dealers and service provider networks. However, this model relies too much on channel expansion. In the absence of sufficient product differentiation and insufficient core technology innovation, channel advantages are difficult to last. Once the market environment changes or technological changes strike, it will be difficult to maintain its dominant market position solely by relying on channels.
In the third five years, Qiangli Jucai has adjusted its product strategy, launched outdoor surface mount single red products to promote industry transformation and bet on P2.5 small spacing. However, most of these are in line with the general trend of the industry and are not groundbreaking leading moves. In terms of technology updates, although chip technology has been followed up, compared with the real technological innovation leaders in the industry, there is a lack of breakthrough and forward-looking results. In the global layout, although it is involved in the international market, compared with internationally renowned brands, its brand influence, market share and technical recognition in the international market need to be greatly improved. The goal of the so-called global leader in the field of large LED displays is more like It is wishful thinking.

In the fourth five years, Qiangli Jucai claimed to withstand the pressure in a complex economic environment. In 2021, sales will reach 4.5 billion yuan, but it includes about 800 million yuan in auxiliary materials such as control cards and power supplies. After removing the revenue from this auxiliary materials, sales of its display core business are relatively limited. At that time, the inventory of dealers at all levels was as high as 1.8 billion yuan, which means that the sales of display products absorbed in the actual market were far lower than the claimed data. Its growth may be largely due to the dividends brought by the global price hikes, rather than a substantial improvement in its own management and core competitiveness. Vigorously expanding production in 2022 will enable companies to quickly fall into the dilemma of high debt ratios from relatively good cash flow. According to third-party statistics, its turnover continues to decline, falling to about 3.5 billion yuan in 2022, to about 2.8 billion yuan in 2023, and may even hover around 2 billion yuan in 2024.
Looking at the same level of enterprises, Shanxi Gaoke Optoelectronics will have revenue of as high as 6 billion yuan in 2023, and Fujian Haijia Cailiang will also increase its revenue of 1.8 billion yuan from its previous scale. Once upon a time, powerful Jucai may not have paid attention to these brands, but now they are far surpassed and close to each other. This sharp contrast fully highlights the gradual emergence of powerful giant color's disadvantages in market competition. Problems in strategic layout and operation management have seriously affected its market position and development prospects.
In today's LED display industry, where technological innovation is accelerating and market competition is fierce, innovation in discrete device and integrated packaging technology and the opening of trillion-dollar commercial and civil markets require companies to have a strong channel network, as well as core technological innovation and product diversification. And the ability to effectively respond to market risks. If powerful giant color fails to adjust its strategy in a timely manner, make substantial breakthroughs in technological innovation, effectively reduce debt ratios, optimize production capacity utilization, and accurately match market demand, its future development will be full of uncertainty, and the so-called title of king of shipments will also It is not worthy of its name, it is difficult to gain a foothold in the wave of industry change, and may even gradually be marginalized by the market.