As the prices of LED display screens continue to decline and competition intensifies, LED display screen manufacturers have to conduct new market segmentation to accurately position their products in order to make breakthroughs in this market environment.
The so-called market segmentation refers to the market classification process of dividing the overall market of a product into several customer groups (sub markets) with roughly the same needs based on the obvious differences in consumer needs and desires, purchasing behavior and habits.
The market is a unified whole, a complete system. The market system includes various types of markets of different sizes, and for the sake of its own interests, in order to formulate the correct marketing strategy and choose the correct target market, enterprises must differentiate the market and select the target market from it.
Market segmentation is the basic method for enterprises to choose target markets. Mastering this basic method is the only way to achieve target market selection.
The current situation in the LED display screen market is that after years of development, some areas in first tier cities have become saturated, and with some government restrictions, the demand growth rate is slowly slowing down. The trend is for channels to sink to third – and fourth tier cities and even rural areas, as display screens are becoming cheaper.
At present, the rural market does not have high requirements for the quality of LED display screens, and the demand for high-end products is not high. But in the future, its incremental growth is significant and its potential is infinite.
Many domestic enterprises are mostly constrained by brand influence, after-sales service, quality and other issues when exporting overseas, and their development has entered a bottleneck period. The global LED display screen market is still dominated by the European and American markets, with fierce competition.
In this increasingly competitive market environment, many display screen manufacturers are starting to find their own market positioning and delve deeper into segmented markets.
At present, the market demand for display screens in the field of outdoor advertising is still the largest. On the surface, it appears to be a competition between display screen companies, but in reality, it is a struggle of enclosure as the king. Whoever can obtain the approval of advertising space will increase their market capacity, and this situation will be improved in the future.
In this context, the gradual differentiation and diversification of the LED display screen industry have gradually become a development trend.