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Why are the LED display engineers struggling?

Jul 28, 2017

LED display technology's rapid development and innovation, so that led display industry prospects have become more and more broad. Gradually entered the digital display era, a new blue ocean seems to have emerged!

At the same time, domestic LED display industry competition is increasingly intensified, many enterprises began to find new direction in order to compete in the future market place. In this kind of industry development background, the engineering company also is in a more awkward position. In particular, the recent impact of the wholesale channel, the survival value of the developers space is further squeezed. Profit margins are also getting smaller, and collections are getting harder. This is also the very serious practical problem that every engineering trader faces. 

Difficult for manufacturing industry to work hard

The average wage in China's manufacturing sector has surpassed that of Latin America, excluding Chile, and has reached about 70% of the level of some eurozone members, which is a positive feedback on China's economic development and a visual manifestation of the dramatic increase in the cost of manufacturing labour, according to a report released by research institutions. With the 2017 industry competition intensified, the "price" and the trend of industry reshuffle, the impact of corporate profits are further reduced. Whether labor, raw materials or enterprise operating costs have been greatly increased. Therefore, the cost problem has become a large number of small and medium-sized enterprises LED display is plagued by problems.

At the moment, LED displays are sold in a variety of ways. Among them, there are retail, channel business, LED display engineering and other forms. It can be seen that the engineering business is one of the large groups that can not be neglected. LED display as advertising communication, commercial display, entertainment interaction, and other functions in one of the important media carrier, its promotional functions are gradually improved and improved. At present, in the current competitive market environment, although the visual effect of LED display more and more good, but frequently exposed the phenomenon of increasingly poor quality. Some manufacturers and engineers to achieve greater profits, the electronic raw materials and accessories continue to be improved and replaced, resulting in a greatly shortened service life, the failure rate also increased, resulting in the user's choice of LED display screen more and more insecure, lack of trust in products, therefore, manufacturers and engineering business more difficult to do.

Industry competition intensifies profit cost thin as Cicada

There must be cause and effect, the situation mentioned above may not be "groundless". As far as the current development situation is concerned, the cost price of LED display manufacturing industry has been basically transparent. At the same time, party A has the right to the market for product quality, service quality and price comparisons, which in a way to a certain extent the threat to the contractor. And the engineer in the production process also faces the pressure of survival, have to reduce the due profits. If the engineers want to stabilize the project at this time, only further compression costs, basically to give up profits and even Shang.

In fact, there is an interdependent relationship between the engineering firms and the manufacturers in the market activities. However, more and more manufacturers are directly involved in the project, especially the admission of large companies, with a strong network of contacts and market operations to make the situation of the engineering companies increasingly difficult. In some large-scale projects, the owners of the use of equipment and performance will conduct a lot of market research. In this way, the choice of the brand is limited, and the discourse power is less. In order to get the project, the manufacturer usually makes a unified quotation for the project builders. It is not difficult to see that the engineering and manufacturers are actually a loose interest community. 

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The relationship between engineering firms and manufacturers is subtle and peaceful.

In addition, with the rapid development of the digital age, the engineer is faced with a strange phenomenon, that is, the choice of software platform and equipment suppliers more or less bound their own growth. In other words, platform vendors tend to make some restrictions on software, or they can only extend new functionality on their own product lines, in order to prioritize the sale of their own devices. In this way, if the owner comes up with a new functional requirement, the contractor can usually only filter the new features and new devices developed by the original platform vendor. The final result is a device that usually has only one or two vendors in the system. This relationship can be maintained in a short period of time, but in the long run, if the technical capability of the manufacturer is not updated or the service is not in place, the owner, the engineer and the manufacturer will be conflicted because of the inconsistency of the profit point.

Therefore, both the engineering and the manufacturers are constantly looking for new ways of cooperation, in order to gain more benefits and autonomy, a little strength of the engineers are usually prepared or already in their own production, research and development of products. In addition, the contractor also needs to work with the manufacturers in an orderly manner, especially in the quality of products, because of construction engineering, to each of the qualified products linked to the party, in the product quality must be excellent, in order to avoid in the middle or after the sale of wiring, links, commissioning and other problems, now the project acceptance standards more stringent, a bit negligent or unqualified place, party A will pick up trouble. On the one hand affect the project acceptance progress, on the other hand will affect the project funds return. The direct economic losses to the engineering operators are relatively large.

To sum up, as an important part of the entire industry chain, the engineering business is not only limited to the LED display of this single technology and products, but also to broaden horizons, innovative thinking, looking at the display solution provider. Actively absorb a variety of advantages and competitive display technology, such as LCD, DLP, projection, OLED and so on, to meet the various display needs of customers. For the local engineering, any product, out of the product itself, product after-sales service has an impact on the proportion of more and more large. A better service industry is bound to bring endless vitality to the enterprise, and is also conducive to customer problems. Therefore, to strengthen the promotion of after-sales service level is also one of the factors that can not be overlooked by engineers.

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