LED cross-border enterprises too, by their own business infiltration better?

Industry overcapacity and price competition is the LED industry in recent years to give the impression of the outside world. LED enterprises how to break through the border, become the focus of attention of all parties.

Different from KingSun through direct acquisition of the transformation of the way, Lehman's shares in 2011 by LED display equipment replacement way super advertising display time, gradually infiltrated into the sports industry.

However, the current LED industry started cross-border business at a loss, some enterprises cross is a casual move, Guangdong Province Chamber of Commerce electrical LED branch secretary general Peng Jie analysis, "now these companies are still in development, the transition effect remains to be seen. "

Lehman's dual strategy

2011, the company intends to use the LED screen to replace the previous fixed advertising board, so in advertising, can enhance its commercial value and advocacy efforts. At that time, Lehman to replace the resources of cooperation, became the official partner and the only super LED screen supplier.

Reporters learned that, in fact, did not want to go to the physical aspects of Lehman to extend. Of course, in cooperation with Lehman shares is an opportunity, vice president and Secretary of the board of directors Luo Bing said, "take this opportunity we won the super league matches every time part of the advertising management right. When we consider the Lehman brand abroad more visibility and influence, in order to enhance Lehman's popularity in the country, in the first year to obtain advertising rights, we are not foreign sales, and advertising all the time in Lehman own advertising. "

The next two years, the super company saw the LED display alternative to the commercial value of fixed advertising board to buy some of the advertising time to lehman. It is understood that the Lehman proposed to develop to the sports industry, is at the end of 2011, the company through repeated demonstration and analysis, that the sports industry can expand the space, there are a lot of business opportunities, so moving into the sports industry.

On the evening of August 19, 2015, Lehman's board of directors announced that the proposed securities referred to by the original Lehman photoelectric change Lehman shares to reflect its dual main strategy.

According to public information, in 2011 after Lehman's sponsorship of the super, and in 2014 sponsored by the armor, began a comprehensive layout of the sports industry, the title of the Portuguese occupation football league, the establishment of sports culture fund, Lehman keishing Lehman shares media, the world's second largest sports marketing company, Switzerland infront sports media group.

In addition to optimistic about the future prospects of the sports industry, the establishment of the main business strategy and the status of the LED industry has a great relationship. LED industry has experienced in the period from 2008 to 2010 after the explosive growth, with the continuous influx of capital outside the industry, from 2011 to 2013 the whole industry is very competitive, so that the LED industry performance of listed companies is not very good. Lehman's annual report shows that in 2011, the company operating profit of $34 million 871 thousand and 800, down by 18.70%, net profit of $33 million 109 thousand and 200, down by 15.03%.

But it should be noted that, in 2015, Lehman's share of operating income in the LED industry accounted for 89.99%, accounting for the sports industry accounted for more than 10.01%, it can be seen that the layout of the sports industry also requires a continuous investment process.

Transformation effect to be observed

Peng Jie said, LED cross-border enterprises, but also based on the current analysis of the industry to make the appropriate decisions, overcapacity and price competition, are companies need to face the problem.

For the LED industry, how to transform the industry, an industry source told reporters, directly from the LED industry to another industry, which may be related to their own development bottlenecks encountered in the LED industry. Lehman by virtue of its own LED business, and gradually penetrate into another industry is preferable.

Luo Bing also said, "in the sports industry from Lehman's way, should be a natural process, there is relationship between the business collaboration and to undertake this one, not to say suddenly into a new realm. "

Relative to the involvement of the sports industry, Lehman inadvertently move, other companies engaged in LED, in the choice of cross-border industry, whether it will face similar to the status of the LED industry?

Peng Jie believes that the industry as long as there is profit, there will be a relative surplus, especially in the field of many low threshold. Those high-tech, difficult to enter the industry, but the lack of enthusiasm for investment. Faced with this situation, there is no good way to resolve, only through market competition, so that some enterprises become the mainstay of the industry.

Although a number of LED companies in the cross-border aspects have made the appropriate layout, but are still in the development of the effect is not yet the conclusion of the time. Peng Jie said.

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