In the first-line market competition, all LED display companies are faced with a common confusion: how to balance the relationship between scale and profit, so as to enjoy scale and profit.

Over the years, many manufacturers have fallen into a business dilemma of "no profit if you want scale, but less scale if you want profit". Especially since last year, many LED screen companies and net salesmen have started a business exploration guided by the mid-to-high-end upgrade of product structure. The core is to gradually reduce the dependence of enterprises on scale and promote the transformation of screen companies. In order to pursue the development of medium and high-end products.

First of all, after two years, some screen companies have gradually discovered that it is easy to fall into the situation of "loss of scale and no profit" just through the operation of medium and high-profit products. The reason is that the so-called mid-to-high-end products of many screen companies do not live up to their names - the prices have gone up, but the technology, functions and brand recognition contained in the products have stayed in place, so the market has been transforming many LED screen companies for a long time. The products are "applaud but not popular".

Secondly, the transformation process of "lighting on scale and focusing on profits" is not a matter of a year or a half. It requires strategic persistence and even more environmental cooperation. However, in recent years, the price war in the LED display market has continued to spread, and the wave has been higher than the wave, which has also slowed down the product structure adjustment of many screen companies.

Furthermore, from scale to profit, many LED display manufacturers lack means and strategies. In addition to the "price war", there is almost no other means of market competition in the LED display industry, ignoring the needs of mid-to-high-end market consumption, focusing on quality, brand, technology, service and experience, etc. Of course, it is impossible to realize the transformation of "profit" operation .

Facing so many difficulties, challenges, and operational confusion. For LED display manufacturers, under the market environment in 2020, can they continue to explore "a new balance between scale and profit"? The answer is yes.

As we all know, the value of scale to the LED display industry and individual companies, I believe that no screen company will voluntarily give up. The key to solving the problem of the balance between scale and profit lies in the creation of a new profit system, rather than giving up the pursuit of scale. At present, with the intensification of "cost reduction" and "depressed market demand" in the LED display industry, lower profits are obviously an inevitable result. Then, where do the new profits come from?

Judging from the current industry and market environment, it is to reduce expenditure and control costs. In recent years, we have found that many screen companies have begun to vigorously optimize their enterprise management systems to save business operating costs. In addition, it is also a good choice to cut down a series of expenses that have no value, do not create income, and are not just needed.

The other side is to increase the flow of open source through high-value products, super-value services, and other efforts. For example, let LED display service providers also join the direct sales of products, save the channel costs of middlemen, and mainly promote high-value products; set up special promotion incentives for mid-to-high-end new products to encourage all employees to promote high-quality sales; expand the added value of products, Let the product further meet the pain points of market demand; in addition, it can also expand various direct sales channels and platforms, such as content e-commerce delivery, live broadcast e-commerce delivery, etc., multi-point, multi-platform, multi-system, to ensure scale at low prices In addition, establish a value promotion platform for mid-to-high-end products.

Scale and profit are never in opposition. We can try our best to correctly optimize profits under a certain scale, provided that we build more profit support points, instead of being blindly controlled by the market environment and falling into the quagmire of low prices and scale.