The Shift in LED Display Trade Models: From Project-Based to Distribution

Industry veterans have witnessed a major shift in LED display trade models. In the past, project-based cooperation was the norm—customers would have specific project requirements and work with suppliers to customize LED displays. However, in recent years, the industry has undergone a significant transformation.

Why the Shift from Project-Based to Distribution?

1. Technology Advances – Increased production capacity and efficiency.
2. Lower Costs – Mass production has reduced material and manufacturing costs.
3. Market Demand Changes – Standardized products are becoming mainstream, with greater focus on fast delivery, stock availability, and localized service.

As a result, many major LED manufacturers have adopted a distribution model, partnering with authorized local distributors to improve warehousing, logistics, and after-sales support. This trend is irreversible, especially as LED displays move into the consumer market, where fast delivery and local service are crucial.

Project-Based vs. Distribution Model: Pros & Cons

1. Project-Based Model

? Pros:

• Fully customizable – Adjust size, specifications, and shape as needed.
• High reliability – Longer lifespan, offering better long-term ROI.

? Cons:

• Longer production and delivery times – Best suited for custom projects.

2. Distribution Model

? Pros:

• Stock availability – Faster delivery, no waiting for production.
• Better local service – Quicker after-sales support.
• More competitive pricing – Standardized production reduces costs.

? Cons:

• No customization – Products come in fixed sizes and configurations.
• Shorter lifespan – Typically lasts 2-3 years before needing replacement.

The shorter lifespan of standardized products is intentional. Custom LED screens can last 7-10 years, reducing the need for frequent replacements, which is not ideal for manufacturers aiming for repeat sales. The distribution model ensures a shorter product lifecycle, driving higher repurchase rates and sustained business growth.

My Take: Customization is the Better Choice

From an environmental perspective, longer-lasting LED displays reduce electronic waste. Instead of replacing screens every 2-3 years, investing in a high-quality, custom solution that lasts 5-10 years is more sustainable. While standardized products offer cost and delivery advantages, if budget allows, customization remains the smarter and more eco-friendly choice.

Benny Lam

3/12/2025