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Why are outdoor advertising LED displays very cheap in China but expensive to export?

ago by (35.4k points)

2 Answers

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The price of outdoor advertising LED display screens in China is relatively cheap, while the export is more expensive, which is mainly affected by the following factors:

Material cost difference: Domestic display screens mostly use cost-effective domestic or Taiwanese chips (such as Sanan, Silan, Jingyuan), while export products may use imported chips (such as American CREE, Japanese Nichia), which are significantly more expensive.

Market competition and pricing strategy: The domestic market is highly competitive, and manufacturers use low-price strategies to seize market share, resulting in price involution; while export products need to cover additional costs such as tariffs, transportation, and international certification, and need to meet overseas customers' higher requirements for quality and brand, so the price is higher.

Product specifications and added value: Export display screens usually use higher resolution (such as P2.5, P3), HDR technology or customized design (such as special-shaped curved surface, transparent screen body), with complex process and high technical content, which further pushes up the cost. For example, the domestic price of P2.5 model is about 9,500 yuan/square meter, while the export model may double the price due to technology upgrades.

Supporting equipment and construction costs: Export projects require more complete heat dissipation, power distribution, lightning protection systems and intelligent monitoring equipment. Overseas construction is difficult and the installation costs are high. These costs will be passed on to the final quotation.

ago by (32.1k points)
+1 vote

The export price of China's outdoor advertising LED display is relatively high, mainly due to cost structure and export advantages. The cost of domestic LED display is about 30%-50% of similar foreign products, thanks to the cheap price of domestic basic materials, VAT refund policy, and the use of domestic lamps to significantly reduce costs.

In addition, export-oriented LED companies also benefit from the development of technological level and the vast overseas market space. Although the export price is relatively high in the domestic market, compared with similar foreign products, China's LED display still has a greater competitive advantage.

ago by (102k points)

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