Ben Phelbs | Absen

Although demand for LED in Absen’s home market China was down, the manufacturer had a successfull business year of 2022. Ben Phelbs, Absen retail industry director, saw new markets emerge and demand in the retail sector ramping up, as he explains in the invidis Annual Commentary. 

One of the great benefits of working for a Chinese LED manufacturer is that it gives you a global business perspective. This has been particularly useful in the last couple of years as the fortunes in Europe and China have fluctuated differently over the pandemic and post-pandemic periods. Having a foot in both camps so to speak, has allowed us to be agile and react quickly, changing focus when and where necessary as the business and our customers have required it – whether for fixed install or rental requirements. An example of this would be that during lockdown in China, we were able to redeploy the internal Absen regional teams and redouble efforts to make sure sales remained buoyant internationally.

At the beginning of 2022 there was a real desire in Europe to get back to ‘normal’ as quickly as possible. This was understandable, given how everything had slowed down across the board with lots of industry events being cancelled. By the middle of the year however, things had improved and there was a good recovery underway with a lot of positivity around during those months.

New Verticals

Considering the circumstances, we have had a very good year as demand for high quality LED continues to grow. The Chinese LED market, which is bigger than the rest of the world put together, was sluggish but that meant we could focus on the needs of the rest of the world. This year has also seen the emergence of new markets such as esports and virtual production, which has compensated somewhat for some of the slower activity in other verticals. These exciting markets are really pushing the boundaries for LED, and what can be achieved on tight timescales. But they also provide huge potential, covering all types of projects from the big budget, VP film studios, international esports and gaming venues to the smaller, more immersive settings and corporate environments look to create memorable spaces.

Providing Support as a Manufacturer

I think what has become clear on this journey through these difficult times is how, as a manufacturer we can offer support to our partners and customers in the Digital Signage and AV industries. This can take many forms. Managing stock availability and lead times is vitally important for us as any issues that arise can have a huge impact on our customers. Likewise offering payment flexibility can really help as this can be a make-or-break issue for many companies. Looking back, I hope that we’ve demonstrated that as a partner, we really understand our customers’ concerns and issues and that success is a team effort.

Retail Gives Reason for Optimism

Looking ahead, the retail sector gives me great cause for optimism with the sheer number of opportunities for growth that exist. There are many retailers who have yet to fully embrace LED and the benefits it can create for an improved in-store as well as OoH experience. Alongside that, there are a few trailblazers, I’m thinking of a major Spanish fashion retailer, who has really embraced LED and is now reaping the benefits that the technology can bestow. As competitors see this and react, the growth will hopefully be exponential and long-lasting.