On January 24, 2014, Shenzhen Qipu Optoelectronics Co., Ltd. (hereinafter referred to as “Qipu Optoelectronics”) officially rang the buzz of the listing of the New Third Board in Beijing. In the highly competitive LED color screen industry, Qipu Optoelectronics has ushered in a new era, not only entering the capital market, but also expanding its production capacity in 2014 through investment and transformation of production lines.

In recent years, the hot development of the LED display industry has attracted many small and medium-sized enterprises to enter, and there are many speculative enterprises that hold the mentality of “taking a slap in the face”. In the view of Wu Xiaogang, chairman of Qipu Optoelectronics, this industry seems to have a low threshold. It is not easy to do well. In recent years, many companies have gone out, the key is to provide products that are continuously innovative and stable.

On the one hand, Qipu Optoelectronics has made breakthroughs in production, providing modular products that can be quickly supplied. On the other hand, it takes dealers to let the installation and after-sales work be done to dealers, while enterprises focus on produce.

Standardize common modules

LED display belongs to the downstream of the LED industry, mainly refers to the packaging of LED chips and the production and application of various LED display, lighting and backlight products. Qipu Optoelectronics is mainly engaged in research and development, design, production, sales and service of LED full color display.

LED full-color display is now widely used, and many outdoor advertising applications are much more attractive. The most striking is the two large screens in front of Tiananmen Square. In recent years, the industry has developed rapidly. In the traditional product conditions, market competition is based on price as the main means of competition. After several times of adjustment of traditional product prices, it has basically reached equilibrium. The low-end market industry is highly competitive, with low concentration, and the industry concentration in the mid- to high-end market is relatively high. It is understood that industry leaders often adopt strategies that focus on specific market segments.

LED display applications have a variety of forms and a wide range of applications, but because different types of products have great differences in technical difficulty, production and sales models, channel resources, etc., companies often choose one or two areas with similar product characteristics. Technology accumulation and market development will form a certain competitive advantage in this field.

Qipu Optoelectronics is also the same, mainly in the outdoor advertising this force, has also done LED photo products for a short time, has now withdrawn from this, focusing on LED full-color display. In general, LED products are mostly customized and personalized, but Qipu Optoelectronics has taken its own path.

The LED display is installed in different sizes, and the accuracy of the display is different. Therefore, most manufacturers have orders to reproduce. Qipu Optoelectronics found that it can produce some standard general-purpose modules, such as P5, P16, P20 (refer to the display pixel spacing of 5mm, 16mm, 20mm) and other different spacing to produce a standard module of 320 × 320 size.

Wu Xiaogang introduced that in the same box shape, you can use the common modules with different spacings, like the "Transformers". The advantage of this is that it can be quickly shipped and flexible for manufacturers. The standard standard general-purpose cabinet can be stocked, and different spacing modules can be installed according to different projects, so that most of the factories are produced according to plan. For the dealer, the installation and maintenance are simplified, familiar with one, you can master all, reducing the difficulty and workload of sales, engineering, training and maintenance.

"Standardized universal modules, even if there are spare parts to buy in a few years, can also be in the original position, the original structure, the original box, replace the higher technology, higher density black diamond module." Wu Xiaogang said, for the manufacturers The main thing is that you can have autonomy, you can organize production in advance according to your own plans, without waiting for orders to organize production.

Since LED products are mostly customized and personalized, the company will also do some production according to the specific order requirements. Wu Xiaogang said that in general, the company adopts the mode of independent production, part of which is produced according to plan, and the other part is produced according to the order, mainly by the production department and the production technology department.

After the Spring Festival of 2014, Qipu Optoelectronics carried out a comprehensive upgrade of the LED display production line of the workshop, presenting it in front of customers with a new and neat appearance. The company currently has 10 fully automatic automatic plug-in production lines, 5 full-high-speed automatic patch production lines, 4 automatic welding production lines, and 2 automatic gel drying production lines, which can realize the professional separation of product lines.

Use a live dealer

At present, the common production mode of the optoelectronic industry is the engineering installation of production and processing. However, the engineering installation process leads to a long period of capital withdrawal, low efficiency of asset turnover, and high requirements on the scale of funds. Qipu Optoelectronics has adopted another marketing strategy to use live dealers.

Wu Xiaogang said that the company took the lead in adopting the channel marketing model in the industry based on the traditional end-customer marketing model. According to him, the core of this model is that Qipu Optoelectronics is mainly engaged in the R&D, production and application of LED application products, developing and maintaining professional channel customers, while the product installation and after-sales service of the business process backend is mainly through localization. Professional channel customers to complete.

Qipu Optoelectronics recently organized a core strategic partner summit to further narrow the distance with dealers. Through establishing a linkage mechanism with professional channel customers, the company can provide customers with the latest developments in the local market in the first time, enabling the company to more accurately grasp the market trends and promote the timely follow-up of the company's products and technologies.

By establishing a channel system covering multiple key regions across the country and overseas, the company can establish close contact with as many terminal regional markets as possible, so as to adapt to the rapidly growing LED application market and quickly seize market share. Wu Xiaogang said that at present, the company's main business or overseas business accounted for a slightly higher proportion, and in the next few years, will continue to maintain such a proportion. In his view, the domestic market is slow and difficult to recoup, so I hope that the company's domestic and foreign business can go hand in hand.

Expert Reviews

Production module optimization model

The production is modular and provides stable products. Qip’s approach is not unconceived, but Qipu has done it. It also includes many of its practices, such as quality first, commitment to new products, research and development of new technologies, in-depth cooperation with universities, continuous innovation, many companies have been saying, always thinking, but "you still think, I have Do it," this is the best of Qipu.

In addition, Qipu is commendable for its proximity to the first-line market through professional channels and the establishment of a linkage mechanism to grasp the latest developments in the local market in the first place. However, in the era of mobile Internet, after accurately grasping the market dynamics, whether it can follow up in time and respond quickly to meet the customer experience in different regions, this is also a test of market alignment.