LED Lighting Overseas Market Situation Analysis

- Sep 09, 2018-

This year, the domestic economic situation is not optimistic, and domestic sales in the lighting industry is not satisfactory. Many enterprises will choose to move to overseas markets. In addition, "One Belt And One Road", aiib and other industries in China inject a new boost, which also drives new business opportunities in the LED lighting industry.

Let's see if the overseas LED lighting market is worth the investment and development of LED lighting enterprises to explore new business channels.

LED export

The LED trade

The European market

LED出口

Entering 2015, the eu LED lighting product export showed a growth trend.

The LED lighting market in Europe will grow from about $2 billion in 2011 to $10.24 billion in 2015, and the average annual growth rate is expected to reach about 49% from 2012 to 2015.

The European market has always been a big exporter of Chinese lighting companies.

Among them, Germany has a large import volume of Chinese pipe lamp, lantern strip, car lamp and stage lamp.

The demand of Dutch for Chinese pipe lamp, spotlight lamp and stage lamp is large.

Italy imports Chinese lamp strip, the number of indoor decorative lamps is larger;

The number of Chinese spotlights and interior decorative lights is large in Britain.

France mainly imports Chinese spotlights;

Belgium and Denmark mainly need Chinese stage lights.

In addition, the lighting standards in Europe are relatively high, and the lighting effect and atmosphere requirements are relatively high. LED lighting products entering the eu market need to be certified such as ce-lvd, ce-emc, ce-rohs, ce-erp and GS.

Under the influence of the Greek debt crisis in Europe, such as Italy, Spain, Portugal, Ireland and other countries are to varying degrees in the debt crisis, the crisis intensified, is changing the pattern of the eurozone and the whole of Europe, the concept of "euro irreversible" will be shaken, cause the market to "who will be the next Greece" speculation that influence will go beyond the euro zone, extending to the whole of the European Union, also need to various enterprises and cautious.

 

In the Middle East market

In 2014, the export volume of China's top ten LED products to the Middle East market was us $2737 million, up 106.68% year-on-year. The export volume is expected to exceed us $570 million in 2015. The top three export countries are Iran, uae and Saudi Arabia.

The main LED products exported to the Middle East market include LED lighting, LED display, LED, lighting, lighting, parts and so on.

Strong investment in Middle East market infrastructure, international cooperation and domestic development plans all involve infrastructure construction, and world-class activities and major competitions have a strong driving force for LED development.

The Middle East market is more sensitive to price than the European and American market, and the products with high cost performance will be more popular.

It is understood that Qatar has brought about 20 billion business opportunities and guangdong guangbohui has become a designated lighting supplier. This third-party platform may be helpful for Chinese enterprises to enter Qatar. In the future, the Middle East market will show a higher growth rate, and Chinese LED enterprises need to grasp the "fat meat" of the Middle East lighting market.

 

The American market

The U.S. department of energy estimates that the overall U.S. lighting market will reach $25.1 billion in 2016.

The us market is the biggest overseas market for Chinese companies, comparable to Europe.

China accounts for 70.50% of the imported LED products in the United States, accounting for about $420 million. Two-thirds of the American people have purchased household LED lighting products.

At present, OEM has become the main export mode to the United States, with few free brands, mainly small and medium-sized enterprises, small and scattered export orders, and "unlicensed" products dominate.

In addition, in the area of smart lighting, consumers are most concerned about price, with about two-thirds saying price is the most important factor in deciding whether to buy smart bulbs.

As the price of smart bulbs has also begun to fall, features and lighting performance could soon become a more important buying driver.

 

Russian market

According to the monitoring data, from January to May 2015, China exported LED lighting and display products to Russia for a total of us $102 million, of which us $83.385 million were lighting products and us $185.85 million were display products, accounting for 81.8% and 18.2% respectively.

The top three lighting products exported to Russia are ceiling lamp, projection lamp and panel lamp. The total export amount of the three types of products accounts for 70%, and the ranking is lamp strip, bulb lamp, solar lamp, street lamp, stage lamp, down lamp, etc.

LED products type and scale of Chinese exports to Russia for several years of rapid growth, the momentum of visible, although in the first half of this year the Chinese LED enterprises to see Russia's economic downturn, the rouble devaluation, under the condition of development and the deepening of the Russian market is also a slight hesitation or hesitation, but the expansion of the Russian LED market demand has been attractive, according to the forecast GSCResearch: in 2015 China's exports to Russia LED lighting and display products will be $1.374 billion and $069 million respectively, to rise to $3.354 billion and $2019 in 178 million.

Go out of the country, all the way to the north, is also a good choice for enterprises to expand the territory.

 

The Japanese market

China's LED lighting exports to Japan have not risen in value this year.

In the first quarter of 2015, the total amount of LED lamps in China to Japan was $107 million, increasing by -29% year-on-year, accounting for 6% of China's overall exports, down 4 percentage points from 10% in the first quarter of 2014.

Japan is a traditional important export market for LED lighting products in China.

At the same time, the brand and enterprise structure of China's LED lighting exports to Japan show a high degree of export concentration, large orders and high degree of standardization.

Among the TOP30 companies exporting to Japan, the subsidiaries of five companies including Toshiba, endor, hangzhi and romdar exported $45.16 million to Japan, down about 28.5% from the first quarter of 2014.

However, from the perspective of proportion, these enterprises accounted for 42% of China's exports to Japan in the first quarter of 2015, unchanged from the first quarter of 2014.

In the face of the Japanese market, which pursues perfect quality, domestic enterprises can gain trust only if they start from quality.

Although Japanese customers are difficult to develop, it is easier to maintain once the development is successful.

 

The south Korean market

The ministry of knowledge economy expects the LED market to grow at an average annual rate of 30 percent and expand to about $100 billion by 2015 from $21.4 billion in 2008.

Faced with this huge market, the south Korean government introduced policies aimed at improving the country's competitiveness.

When selling products in South Korea, the imported products should also meet KS certification standards. Korean enterprises will increase their burden due to the change of standards, and overseas enterprises will certainly be affected.

 

The Indian market

As the world's second most populous country, India's economic growth and market size cannot be underestimated.

Due to the low level of manufacturing in India at present, the overall level of LED lighting products in the market is relatively low. Compared with European and north American markets where the threshold is higher, domestic enterprises are likely to enter the ranks of high-end products in the Indian market.

In addition, the Indian government is planning to encourage the use of LED products. In the future, the annual growth rate of India's LED market will rise rapidly and become a battlefield for domestic LED enterprises to seize the beach actively.

At present, about 300 million people in India fail to enjoy the benefits brought by the power grid. Due to the lack of LED core technology in India, LED lighting products mainly rely on import. Compared with traditional lamps, LED lamps are also quite expensive.

India's LED lighting market is forecast to be worth 100 million by 2020.

The output value of LED street lamps is expected to reach 41 million in 2015-2020.

 

The association of south-east Asian nations (asean) market

From the perspective of asean LED lighting market, asean's rapid economic growth, large infrastructure investment, low tariff and even zero tariff policies are very attractive, undoubtedly "stimulant" for China's LED export enterprises.

Among asean members, Vietnam, Malaysia and Singapore became the top three exporters of LED lighting products to asean market in 2014.

First of all, from the import of LED lighting products in Vietnam, the share of LED stage lights was as high as 87.7% in 2014, and the share of LED ceiling lights and LED tube lights, which ranked second and third, was only 5.8% and 3.5%.

From the import of LED lighting products in Malaysia, nearly 60% of the LED lighting market is occupied by LED ceiling lamps.

The second is LED projection lamp, accounting for 18%.

LED down lamps accounted for 9.8%.

Looking at the LED lighting market segment in Singapore, LED ceiling lamps account for 45.7% of the market.

The second is LED projection lamp, accounting for 17.6%.

LED downlights accounted for 15.8 percent of the total.

LED manufacturers with strength and financial strength can take the following strategies to enter the asean market. For example, packaging manufacturers can look for opportunities to enter the local LED lighting manufacturer's supply chain or invest in local factories.

Brand enterprises can find agents or set up offices in the asean market. They can also invest and build factories in the local market and regard southeast Asia as a manufacturing base.

For small, medium and micro LED enterprises, it is most feasible to directly produce finished products to the local market based on the local demand for LED lighting segment products, and the investment return is the fastest. Therefore, it is a good strategy to develop mainstream products and focus on a certain segment market.

However, no matter which entry strategy is chosen, it is indispensable to establish brand influence. Only by strengthening the competitive advantage of LED enterprises in asean market and enhancing their brand influence can enterprises better implement the development strategy of "going out".

 

Central and South America

In South America, growth has been slow because of weak external demand, international capital flight and tighter monetary policy.

Future growth in Mexico and Central America will accelerate as industrial exports improve, domestic demand stabilizes, and the economy restructures.

Brazil is now South America's biggest energy consumer and the biggest importer of leds, accounting for more than 60% of its total imports.

But LED lighting products, which used to be largely imported, are now being made locally.

In addition, Brazil's high trade tariffs, plus a lot of laws to limit, trade protectionism is serious, not with the advantage of technology patents and other core enterprise, by price alone is difficult to enter Brazil market, at present China's exports to Brazil market LED products, mainly to export, OEM way for Chinese local consumers brand awareness is not high, but also be worth place for leverage.

 

The African market

Africa is a dark horse emerging in the LED lighting market. The market potential of African basic lighting and municipal lighting is huge, and Africa is at the low end of lighting application. It does not have high requirements on product performance, low price, long life and durability.

It is estimated that by 2016, more than half of African countries could grow their gross domestic production by 5% every year, and the South African market is not to be underestimated. From January to March 2015, the accumulated export volume of the national lighting industry to South Africa was usd 4750.13 million, up by 6.30% year-on-year.

In this period, lighting industry enterprises go out to seize the success rate of African market will be higher.