According to statistics, the total lighting market in southeast Asia will be nearly 4.8 billion usd in 2015, including about 1.5 billion usd LED lighting, based on the calculation of six major countries in southeast Asia (Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines).
The LED lighting market in southeast Asia grew the fastest in 2013, with a year-on-year growth rate of 63%, which slowed down slightly in 2014-2015, but still increased by more than 30%.
In addition, the penetration rate of LED lighting in southeast Asian market is increasing year by year, and the speed of improvement is gradually accelerating.
LED penetration in south-east Asia is expected to grow from 12 per cent to 32 per cent in 2012-2015.
Southeast Asian market is growing into the most dynamic and potential LED lighting development fertile soil.
The rapid development of LED lighting in southeast Asia is not only driven by infrastructure, but also greatly promoted by the development and influence of association of southeast Asian countries.
Association of southeast Asian nations is a governmental international organization that gathers southeast Asian regional countries.
Founded in 1967, asean is one of the fastest growing regions in the world.
Asean not only actively negotiates free trade agreements with foreign countries, but also sets the goal of establishing the asean economic community in 2015.
The establishment of asean community will make asean a single market and manufacturing base.
The asean economic community, which is scheduled to be implemented by the end of 2015, aims to facilitate the free flow of goods, services and professional Labour, as well as capital flows between member states.
In the policy and standards section, after the establishment of the asean economic community, the unified standard of electronic equipment AHEEERR will be implemented.
Since 2016, electronic equipment products can be sold in other asean countries after being certified in a certain local country.
The implementation of uniform standards has undoubtedly brought significant benefits to the southeast Asian market.
For LED manufacturers, there is no need for multiple standard certification to enter the southeast Asian market, which directly saves the cost and time of export.
And increased trading opportunities, products once exported to southeast Asia can be sold throughout asean.
For local markets and consumers, the implementation of uniform standards enables more benign competition to be introduced, which is conducive to improving product quality and standards, thus improving market acceptance.
With the rapid market growth and favorable policies, the southeast Asian market is bound to become an important overseas battlefield for the future development of Chinese LED manufacturers.
However, manufacturers also need to choose channels and models suitable for their own and local markets in order to develop the market quickly and effectively.
Taking the lighting products imported from China as an example, the lighting industrial chain in southeast Asia can be divided into five types:
1. Local lighting plants will be provided with devices by Chinese manufacturers;
2. Imported semi-finished products + local assembly;
3. Imported light source + local assembly;
4. Deliver goods to countries after direct ODM from China's OEM factories;
5. Private brands of Chinese manufacturers are sold through engineering or wholesale channels.
In general, due to the lack of local production and manufacturing capacity, the southeast Asian countries still have the highest market share with international manufacturers such as philips, strange and Toshiba, followed by local large factories.
However, international and local large factories usually choose Chinese factories to ship the products to other countries after the direct delivery of ODM. The OEM relationship is relatively fixed and the order quantity is large. Therefore, this kind of industrial chain structure takes up the highest proportion in southeast Asia, with an average of over 50%.
Chinese manufacturers, which sell their brands to local markets, also account for about 25% of sales.
In terms of market positioning strategy, since the civil market in southeast Asia has not been opened yet and the replacement demand is still dominated by commercial and outdoor projects, local large factories are generally dominated by engineering channels, while retail and wholesale channels account for a small proportion.
As a market pioneer, international large factories are usually involved in both retail and wholesale channels and engineering channels. Generally speaking, the proportion of retail and wholesale channels is slightly higher than that of engineering channels, and the price level is slightly higher than that of local large factories.
In addition, some manufacturers mainly sell products through channels such as retail and wholesale, mostly small and medium-sized manufacturers. Compared with those in the engineering channel, the manufacturers have lower prices, and focus on the low-end market with the smallest share.
Positioning strategy 1: both B2C channels and engineering channels are involved. Generally speaking, the proportion of B2C channels is slightly higher than engineering channels.
Positioning strategy 2: engineering channels are dominant, while B2C channels are relatively small.
Positioning strategy 3: products are basically sold through engineering channels.
Positioning strategy 4: mainly sell products through retail, wholesale and other channels, mostly small and medium-sized manufacturers.
It can be seen that Chinese manufacturers occupy a quite important position in the industrial chain model of southeast Asian manufacturers at present.
Chinese manufacturers looking for local partners, OEM orders, is an effective path of fast develop southeast Asia market, in addition to this, sets up the brand image, to master the local channel advantage, and export their own brands to southeast Asia, with relatively large scale and brand advantage for Chinese manufacturers, but also to occupy a place in southeast Asia market, and production of private brand product profit margins will be higher.
In general, manufacturers need to do self-assessment, make appropriate channel selection according to brand and channel conditions, and plan product specifications and prices according to local market demands.
Whether high-end or low-end, engineering or retail, private brand or OEM, a good positioning strategy is the key to enter the southeast Asian market.