Here Come the Chinese

At the 2009 ISA Sign Expo, I counted 39 different suppliers of LED electronic message displays and videoscreens. To the best of my knowledge, only three of those exhibitors offered products not produced in China.

Casual observers at the show may have thought they saw many, American-made products. Surprisingly, almost all of them were Chinese products assembled in the U.S. or simply branded by an American reseller. Particularly interesting was the number of Chinese manufacturers who sold their products in the same room as American suppliers who offered the same product with a different name. In at least one case, the same product was offered under three different names by three different suppliers.

If you came to the show to buy LED-display technology, you would’ve found ample offerings, regardless of your sophistication level. But, if you weren’t a tech geek, and you found yourself in the wrong booth, you could’ve been standing on dangerous ground.

I spent the good part of a day visiting the exhibits of Chinese vendors who weren’t represented as American companies. The cultural and language barriers were overwhelming. A neophyte, or even a moderately experienced sign person, couldn’t measure the effectiveness of these companies’ offerings.

At one booth, I inquired about the featured display’s pitch. A young Chinese woman smiled and said, “Ten.” I looked more closely at the display and knew it wasn’t. I asked again. She looked at me with a confused expression before she disappeared behind a screen. She returned with a triumphant smile and said, “Six.” I was going to inquire about the manufacturer of the SMD component, but I just took a catalog and left.

Later, I learned that a friend, who works for Nichia, borrowed someone else’s badge (in the interest of anonymity), visited each Chinese booth and asked which company produced the LEDs exhibited. To my surprise, but not to his, most manufacturers claimed to use Nichia. Yet, none of the Nichia claimants were actually Nichia customers. To my friend, it was a compliment. To a seriously interested display purchaser, it would have been a deception.

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My friend, George Pappas of D3, claims that such deceptions are common with the Chinese manufacturers. George had toured the Shenzhen manufacturers, trying to ascertain how they could price their product so low. He found many manufacturers, to save expense, use a Chinese LED with a smaller-than-normal crystal component. They then drive that diode at a higher rate, which creates the illusion of matching the same size as the properly sized LED. The obvious consequences are a more rapid dimming curve and, ultimately, a shorter life.

For me, the whole experience hammered home what I’ve touted for years. Unless you’re a very sophisticated buyer who can provide all the necessary additional pieces to the puzzle, you should always deal with known manufacturers who can offer you the entire solution.

The LED sign is a very rudimentary component of a larger formulation. What you see at a tradeshow may look like a Rembrandt, but what you’re buying may actually be a few tubes of oil paint and a bare canvas.

A knowledgeable buyer who’s looking for display technology, to use with other components and software to construct a finished solution, can evaluate that product’s merits. But, a signshop that’s looking for a digital display to sell to an end user should be wary. Sidle over to one of those friendly, English-speaking booths where they will understand your needs.

The proliferation of LED-display vendors could easily suggest the product has become a homogenous commodity. Nothing could be further from the truth. The placement of LED technology involves so many intricate variables that the same display, offered by different vendors, may still be radically different.

For example, a manufacturer from Shenzhen, China sells its products through two, U.S. sign vendors, as well as directly from its own factory. The three products operate on different software programs. Each has a different warranty and a different spare-parts kit. All three have different price structures. Shipping for one is from the Midwest, another from the southern U.S. and one from Shenzhen, China. All three have different cabinet depths. One cabinet is engineered for high-wind requirements. All have different mounting requirements.

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Consider the concept of after-sale customer support. One of the three vendors mentioned offers significant phone support. One offers webcam monitoring. The Chinese vendor answers the phone in Mandarin.

I’m not bashing the Chinese. In past years, I sold a Chinese product that was rebranded with the name of a prominent electronics supplier. Then, it was a very good product, like many current Chinese offerings.

But, caveat emptor. The key is: Know what you’re buying. If you’re a savvy LED-technology buyer who needs a new LED-display-manufacturing partner, then visit the Chinese manufacturers at the Sign Expo, even if you need an interpreter. But, be very careful how you formulate your questions. Make absolutely certain you leave nothing open for interpretation.

If you’re a signshop looking for products to sell to end users, then stick with the companies with a strong, American base of operation. This doesn’t exclude Chinese products. Just be certain you’ve covered all your bases when you sell the product to your customers.

When looking for an LED product to sell, consider it an important component to your overall sign package. A sign person needs to know about weight, mounting methodology, cabinet materials, cabinet size, spare parts, warranty, parts exchange, service access and service support.

Also, consider what your customer needs to know about the display, such as:

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• Is it bright enough?
• Does it dim automatically? How does it work?
• Does the software do what I want it to do?
• Is it easy to program?
• How long has the company been in business? Will they be there when we need them?
• How long is the warranty?
• What happens when the sign needs recalibration?
• How long will this sign last?
• Who will be there to fix it?

Ultimately, when you select a digital-display supplier, you’re looking for a good partner with whom you can spend a great deal of time and money. You’re establishing a relationship between your employees and the supplier’s employees. Your technicians need support. You’ll be seeking answers to inquiries regarding particular software functions. You’ll be the conduit between your customers who use the display and the supplier who provides it.

Of course, the display’s image quality must be top-notch. But, beyond that, a host of other considerations necessitates a solid relationship with your display manufacturer/supplier. Rarely are those relationships fulfilled in Mandarin.