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Three Sales Channels in the Domestic LED Display Market

2021-01-12

In 2020, due to the shrinking of the overseas led display market, the vast majority of our country’s export-oriented led display companies are seeking new development space. For this reason, they will adjust their strategies, shift their business focus to China, and increase their efforts to expand their channel networks, dig the domestic led display market.


However, due to the large number of led screen manufacturers in our country, most of the local led screen companies are based on the domestic market and have a certain channel network.


In the export-oriented led screen companies to increase the layout of domestic channels, the domestic market will flood into more competitors, therefore, promote the competition in our country's led display industry channel construction to intensify, making the domestic channel track more crowded.


The channel of led display refers to the sales network of led display. In other words, a channel is a company's sales network. Different from daily fast-moving consumer goods and home appliances, led displays have heavier engineering attributes. The led display products are mainly customized, so product sales require higher professionalism. Therefore, the sales channels are relatively simple, mainly by agents and end customers. As we all know, led display screens are engineering projects. An led display project usually includes the entire process and links from product design, engineering construction and after-sales maintenance. LED display project has the characteristics of small quantity, large investment, long payback time, high risk, easy bumps, etc. So the channel structure of led display companies is mostly based on the direct sales model of companies directly connecting with end customers, that is, zero-level sales channels. Even if you develop agents through this model, the channel is usually only two levels and not too long. It is currently one of the mainstream channel models of led display manufacturers.


In addition, because the led display screen is spliced by led modules, with the advent of the development period of the led display screen, the sales model of the led module was born, that is, the LED display module is wholesale to the market. Therefore, some people in the industry divide led displays into engineering channels and led module wholesale channels. The traditional channel construction of led display mainly refers to the wholesale market and engineering channel market of led display. One of the most notable features of the two is that the wholesale market is the sales led module (led module wholesale), and the engineering channel is the led display project. The led engineering channel has high requirements for professional technology, and is generally regarded as a mid-to-high-end market, which tests the comprehensive strength of the enterprise. The entry threshold of the wholesale market is relatively low, the relative technical requirements are not too high, the price of the product is sensitive, and the competition is more intense.


However, with the further breakthroughs in led display technology, the number of products using integrated packaging technologies such as COB and IMD has increased. In order to expand sales, open up the sales of such products and increase the number of orders for enterprises, the model of led cabinet wholesale has emerged. Especially under the COVID-19 epidemic this year, in order to compete with the inward-looking enterprises, export-oriented led display companies basically use the more profitable small pixel pitch led display or the whole led cabinet as a weapon to open up channels. The domestic second, third, and fourth-tier market opens up another new world of led displays.


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