Analysis of China's advertising industry to maintain steady growth - analysis of industry characteristics

Analysis of China's advertising industry to maintain steady growth - analysis of industry characteristics

First, the scope of competition competition At present, the scope of competition in China's advertising machine is mainly concentrated in large cities, Beijing, Shanghai, Guangzhou and Shenzhen, the amount of advertising players occupy a certain market share. Judging from the placement of advertising machines, the ratio of hotels, hotels, and high-end office buildings is the main factor, and its launch volume accounts for 65% of the market.
Second, the market growth rate First of all, we analyze the Chinese advertising industry to maintain stable growth For 20 consecutive years of rapid growth in China's advertising market will continue to maintain momentum, continue to maintain double-digit annual growth rate, this rate of development has been recognized as the world's most . The Chinese advertising industry has achieved growth in the trend of continued adjustment. According to statistics, the national advertising business amounted to 157.3 billion yuan, an increase of 15.67 billion yuan over the previous year, with an increase rate of 11.1%. At the end of 2006, there were a total of 143,129 advertising business units nationwide, an increase of 17,735 over the previous year, an increase of 14.1%, and 10,400,99 advertisements, an increase of 99,684 or 10.6% over the previous year.
As an important communication tool for advertisements, advertising machines have developed rapidly. At present, the market capacity in China is about 1 million units.
Third, the increasingly fierce competition and confrontation in the competition in the channel market require that the business operations be more in-depth and meticulous, and increase the controllability of market resources. As the sales channel is one of the most important resources for enterprises, its “self-awareness” and instability have gradually become a limitation and threat to the company’s operating efficiency, competitiveness, and operational safety. The reintegration of sales channels has become a concern of the company. topic of.
From the point of view of distribution channels, it is necessary to establish its own independent sales system in the main target market, and also to use each other's existing sales channels for marketing cooperation. In addition, in the rapid development of the international Internet, enterprises engaged in international marketing must quickly change their business ideas.
In addition to establishing a traditional tangible sales channel network, corporate marketing should also be incorporated into the Internet in a timely manner so that companies can gain favorable positions in international competition and improve their international competitiveness.
IV. Industrial Concentration At present, China's advertising player manufacturers are still at a relatively low level. Enterprises are small in size, relatively low in industrial concentration, and weak in product development capabilities. Systematic, modular, and electronic product supply capabilities have just been established. Start. This market has not yet entered the competition stage with the core competitiveness of companies such as capital and R&D. Most of the products are still at a low level of imitation.
V. The stage of the life cycle of each industry must undergo a process of development and evolution from growth to recession. This process is called the life cycle of the industry. In general, the industry life cycle can be divided into the initial stage, growth stage, maturity stage and recession stage. Vertical advertising machine
1. Start-up phase Due to the relatively high research and development costs of the industry's initial investment in investment and product development during the initial stage, the small demand for the product market makes these startup companies face great investment risks. Such enterprises are more suitable for speculators than investors. In the later stage of the initial stage, due to the improvement of technology, cost reduction and market expansion, the new industry gradually shifts from high-risk, low-yield start-up period to high-risk, high-yield growth period.
2. Growth stage In the growth stage, although the industry is still growing, the growth at this time is measurable. Due to the less influence of uncertain factors, the fluctuation of the industry is also small. At this time, the investor suffers from the failure of the operation. The possibility of investment losses has been greatly reduced, while the sharing industry has grown.
3. Mature stage In the mature stage of the industry, the growth rate of the industry is reduced to a more modest level or even the growth will be completely stopped. The output of the industry will even decline. Due to the loss of capital growth, the development of the industry cannot maintain the simultaneous growth of the GDP.
4. After the recession phase appeared in the relatively stable stage, due to the emergence of new products and a large number of substitutes, the market demand decreased and the sales volume of products decreased. Some manufacturers began to transfer funds to other industries, and the entire industry entered the end of the life cycle. stage. In the recession phase, the number of manufacturers decreased, the market contracted, the profit rate stagnated or declined, and when the normal profits could not be maintained or the depreciation of existing investments was completed, the entire industry would gradually disintegrate.
At present, China's advertising machine industry is in the initial stage of the industry, the future market space is relatively large, but the risk is also greater.
VI. Utilization of industrial production capacity and production capacity China's advertising machine industry production capacity is concentrated in large and medium-sized cities in economically developed areas such as Beijing, Northeast China, and coastal areas. At the same time, China’s advertising machine companies actively learn and independently develop product innovation skills and gradually upgrade manufacturing. Ability to promote the rapid growth of the industry. According to statistics, the utilization rate of China's advertising machine production capacity reached 81.6%.
7. Vertical Integration The vertical integration has been used to describe a company's strategic actions. Vertical integration is the combination of production, distribution, sales, and other economic processes that are completely different in technology and are managed within the jurisdiction of one vendor. Business managers need a ready supply of raw materials or services, and a market where their output is ready. The company's arrangement for controlling these risks is its vertical integration. The vertical integration strategy consists of the following four aspects:
1. The number of stages of the activity being integrated—refers to the number of stages that the manufacturer chooses to do in the upstream and downstream stages.
2. The breadth of the integrated activities—Because each phase in the upstream and downstream may have several tasks, it means the number of tasks that the company executes in the home.
3. The degree of internal transfer—refers to the proportion of internal transfer of resource use. A fully integrated company, it needs 100% of the raw materials or services from the internal transfer.
4. Form of Ownership Arrangement—refers to the proportion of equity that the vendor invests in the vertical business.
VIII. Entry/Exit Difficulty The investment in the advertising machine industry will be subject to various pressures. The first is the difficulty of market positioning of the product. A product is only highly recognized by the market, and product sales will grow rapidly. Therefore, market positioning is the primary factor in entering an industry. Second, the market competition continues to intensify, the number of manufacturers continues to increase, companies will face raw materials, production costs and other difficulties. Finally, the sales channels of the industry itself and the customer's difficulty in transferring the brand will also be the barriers to the investment in the starch industry.
Withdrawing from the LCD advertising industry will face difficulties such as asset re-use, after-sales processing costs, and opposition from lower and middle-level employees.
Guangzhou Huibaimei Information Technology Co., Ltd. High-tech enterprise--Advertising machine brand manufacturer: Huibaimei (HBM brand).
LCD advertising player manufacturers: http://