The industry believes that with the further intensification of market competition, the competitive advantages of the industry leaders at the product factor level (quality, price, delivery, service, etc.) will gradually become more consistent, and channel competition will begin to move forward. The sales model of salespersons will begin to transform into a systematic and specialized channel operation.
Undoubtedly, whether it is engineering projects or general applications, the LED display industry has a certain growth space every year, and there are opportunities for direct sales and distribution channels. For enterprises, what kind of channels are chosen sometimes because of market needs, sometimes forced to do so. In short, no matter which channel model is chosen, enterprises should have a clear understanding of the market.
The market is the guide of the channel, where there is a need, there are channels. The premise of channel planning is to investigate the composition and needs of the market. The LED display industry encompasses a wide range of segments, advertising media, information displays, stage performances, sports venues and a variety of special applications. Among them, the major areas include low, medium and high-end applications. For high-end engineering applications, the direct sales model is clearly more competitive. Through bidding, bidding and bidding, there are dozens of companies and dozens of companies competing for a project. If it is a small project, there will usually be some networks around the world, and the competition will be relatively moderate. The distribution model is more flexible in the general rental and commercial markets.
The size and positioning of a company is a crucial factor in determining a company's choice of channels. For the display companies at this stage, there is no market demand, but the market competition is too fierce. The direct sales can't receive the order. If they receive the order, they are worried that they will not receive the payment. The money received is also meager and difficult. After the distribution of the orders, but the management of agents and distributors around the country is difficult, but also worried about being taken away by other companies, how to ensure that the scale of shipment is a headache. Therefore, the enterprise determines what kind of positioning and based on its own funds, hardware and software strength to accurately select the channel model. If it is mainly based on wholesale, it is suitable for distribution mode. For example, Xiamen Powerful Color, Shenzhen Huaxia Guangcai and other enterprises are mainly based on product wholesale, and the distribution model accounts for a large proportion of corporate profits. If the funds are strong and the project engineering orders are not available, then the direct sales operation can naturally start, such as Shanghai Sansi, Shenzhen Redio and other enterprises.
Of course, many companies have both direct sales and distribution, such as Shenzhen Zhouming Technology, and some companies switch from direct sales to distribution, such as Shenzhen Light Energy Technology, and some from distribution to direct sales, such as Shenzhen Radisson. In many cases, there is no complete line of channels, and display companies are not tied to the construction of any kind of channel, and even try more new channels. In short, the channels that can sell products can make money.
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