Explore the LED display industry: both opportunities and challenges exist
today I want to talk to you all about the LED display industry. We specialize in providing solutions for customers who want to manufacture LED displays. In this industry, we offer a variety of machines needed for manufacturing products, some of which are manufactured by us, while others are sold as agents.
The LED display industry is one with relatively high investment costs, but it can be highly profitable if you can reach end customers. However, if your main business is subcontracting and wholesaling LED displays, I advise against getting involved.
Many friends come to me to buy machines to enter this industry. My advice is, if you don't have enough capital and customer resources and just want to rely on processing fees to make a living, then I suggest you stay out of this industry. Because now the LED display industry, like our industry, has a large number of machines, fierce competition, transparent pricing, and very small profit margins. If you want to acquire customers at low prices, believe me, there will always be competitors with even lower prices. And if you want to compete with competitors based on product quality, you need to ensure that your product quality is better, quality control is stricter, after-sales service is better, product warranty is longer, but others can do that too. But in this case, how do you compete with other competitors? In China, product competition is the fiercest. If your product has a significant competitive advantage compared to Chinese manufacturing, then perhaps you can consider joining the LED display industry.
Why do I not recommend entering this industry? Why do you need enough capital? If you want the production speed of LED displays to be fast, you need to have enough machines. Have you noticed why many large companies' production lines need to have more than 10 or even 20 or more machines? Don't these machines cost money to purchase? Why do the machines on the production lines of these companies keep increasing? Because they have no choice. To gain an advantage in competition, more capital must be invested in purchasing more machines. Take Zhongming Company, for example, I believe many people have heard of it. Many of their products are now outsourced for manufacturing. If they want to compete with other companies and gain a price advantage, their company must invest enough machines.
For example, under the same personnel conditions, others can manufacture 1000 modules a day, while you can only manufacture 100, how do you compete with others? In terms of product pricing, you have no advantage at all. Why can those companies with extremely low prices but guaranteed quality do it? Because they have enough capital, they are listed companies, raising funds by selling stocks and investing heavily in machines. Of course, this is what we hope to see and expect.
If you don’t have enough capital, never try to enter this industry because many manufacturing companies face enormous debt pressure. Many companies suffer losses due to insufficient funds and insufficient product competitiveness, eventually leading to bankruptcy. Even some bosses are forced to commit suicide because their business is not going well. If your product does not generate profits and you have to face personnel costs, material costs, machine costs, factory costs, and company operating costs, etc., then you will find it difficult to survive because you have too many competitors and they are too strong.
Since we also face these problems ourselves, I suggest that if you don't have enough capital, never get involved. If you have enough customer resources and want to enter this industry, and want to know how much capital investment is needed, feel free to contact us anytime. We can provide you with complete solutions and the types of production machines you need. This requires detailed communication and explanation.
If you don't have enough capital but still want to enter this industry, we suggest you start with the manufacturing of backend products, and gradually expand to the manufacturing of frontend products when you have more funds, because frontend products require more machines and manpower.
For example, manufacturing GOB displays, GOB LED modules, and other backend products. If you are interested in manufacturing GOB displays, feel free to contact us. Because the number of machines required for manufacturing GOB displays is small, and there are many types of processing. Currently, the technical threshold of this industry is relatively high, although fewer machines are needed, the technical requirements are high.
Well, I've said so much already. I hope friends who watch the video can like and support it, or leave a comment in the comment section to tell me your thoughts, or you can also message me privately.
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