[Source: LED Engineering magazine's "LED lighting channel" 1 monthly text / Xiongyu Heng]

Even in the context of the continued downturn in the market and the obstruction of the European and American seaports, domestic lighting exports still maintain a growth momentum.

According to the research data of the High-tech LED Industry Research Institute, in the first three quarters of 2012, the export value of domestic lighting products was 21.71 billion US dollars, an increase of 36.5% compared with the same period of last year. Among them, the electric light source products were 4.77 billion US dollars, the lighting products were 14.17 billion US dollars, and the other supporting materials were 2.77 billion US dollars. It is reported that the export of LED lamps in the first three quarters of 2012 increased by 40%. In 2011, the total amount of domestic LED lighting fixtures exported was approximately US$1.3 billion.

From the perspective of the composition of export products, the export of incandescent lamps was basically the same as last year, the export of energy-saving lamps decreased by 1.4%, and the export of fluorescent lamps decreased by 6.5%. In addition to LED growth, other categories of lighting products have shown a downward trend.



"The influence of China's lighting products exports on the world should not be underestimated." Guan Yong, general manager of Sunlight Lighting, revealed that China's lighting exports accounted for 30% of the global lighting trade. Among them, compact fluorescent lamps (CFL) and Christmas lights occupy more than 80% of the global market, while incandescent lamps also account for 1/3 of the global market share, and the proportion is still expanding. Since 2008, the domestic LED industry has flourished and its huge market potential has attracted domestic and foreign enterprises to sprint on this land and attack the city. In just a few years, China has become the world's largest producer and exporter of LED lighting products.

Export short board
According to relevant statistics, in the first three quarters of 2012, the export of LED lighting products at Xiamen Port increased five-fold to 70.11 million US dollars; the export value of Hangzhou LED lamps reached 100 million US dollars, an increase of 34.67%; the export value of Shaoxing LED lamps reached 69.44 million US dollars. , an increase of 133%. LED lighting has risen against the trend in a relatively weak market environment.

In terms of regional composition of exports, the United States tops the list, accounting for 20.20% of total exports; followed by Japan and Germany, accounting for 17.2% and 7.6% respectively; although Hong Kong has a large export volume, it is mainly limited to entrepot trade.

Guan Yong said that different countries have directly caused market differences due to differences in the degree of institutional and economic development. For example, the proportion of retail channels in Europe and the United States is very large, especially in the European supermarkets, which account for 42% of sales, especially in Germany and France. In some medium-developed countries, such as Argentina, mainly wholesalers and distributors. Mainly, accounting for more than 30%; while in mainland China and Taiwan, the proportion of engineering channels is now more.

Although the United States is the largest export destination for domestic LED lighting, the entry threshold is relatively high. LED lighting products need to obtain UL and Energy Star certification in order to enter the US retail sales channel. At the same time, the US government will introduce a corresponding subsidy policy for LED lighting products, which also directly leads to lower prices of LED lighting products, and can only take the path of “small profits but quick turnover”.

In the Japanese market, the export situation has undergone major changes in 2012. In 2011, the Japanese bulb market grew very fast. Although LED lighting sales continued to rise last year, it was obviously insufficient. "LED lighting fixtures are growing faster, mainly because LED lighting fixture replacement cycle is shorter than incandescent lamps." Guan Yong said that according to Japanese lighting standards, the bulb lamp usage time is 50,000 hours, and the secondary shelf rate is very low. This will lead to limited market space in the next few years.

"New World"

In the first three quarters of the year, both the European and American markets and the Japanese market saw a contrarian growth in LED exports. However, entering the above market, it is inevitable to encounter technology, certification, especially the lack of patents, making the export of domestic LED companies frequently blocked. In recent years, demand for LEDs in Russia, Thailand, and Africa has increased dramatically, making it a new outlet for LED lighting.

“We have undertaken a number of large LED lighting projects in Thailand and other places last year, with a total price of more than 30 million.” Zhou Shuiming, general manager of Jiamei Lighting Marketing Center, revealed that the demand for LEDs in the Southeast Asian market is large and the policy is very attractive.

Statistics from relevant institutions show that the size of the Thai lighting market in 2012 was about 1.4 billion yuan, of which LED accounted for about 12%, and it is expected to increase to 45%-50% by 2015. More importantly, as long as Chinese companies can obtain domestic certificates of origin, LED products can enjoy zero tariffs when exported to Thailand, and Thailand's price is twice that of domestic.

The products are exported to Thailand and can only be sold in the Thai market through the Thai TIS system certification (similar to the domestic CCC certification). At the same time, Thailand has a tropical climate, and it is hot and rainy all year round. It requires enterprises to work hard on heat dissipation and moisture prevention.

On May 30 last year, the Shanghai Cooperation Organization Business Council announced at the energy conservation project meeting in Moscow that China will spend US$500 million to build the “Shenzhen LED Industrial Park” in Russia. After completion, the annual output value will reach 1.5 billion US dollars.

The project was initiated by Shenzhen Green Semiconductor Lighting Co., Ltd., and a total of 10 Shenzhen LED companies participated in the first phase. In the opinion of the industry, although this move is suspected of being a show, it indirectly indicates that domestic LED companies have begun to pay attention to the Russian market.

On August 22 of the same year, Russia joined the WTO organization, and the overall tariff was reduced from the previous 10% to 7.8%. This is undoubtedly a great news for Chinese LED companies that want to get rid of the European and American market and open up the Russian market.

As the country with the largest land area in the world, Russia has a large demand for LED lighting. It is understood that there are currently few local LED companies in Russia, and there are not many large-scale enterprises. At the same time, the Russian government has also introduced relevant policies stipulating the ban on the sale of incandescent lamps from 2011. Since 2013, the use of incandescent lamps with a power of > 75 watts has been banned. In 2014, incandescent lamps will be completely banned.

The huge market and favorable policies have become an important reason for domestic LED companies to enter Russia. At present, Russia's production facilities and technologies in the LED field are still relatively backward. In view of Russia's special industrial environment, domestic LED companies can explore the Russian market by building industrial parks, setting up distribution companies, or directly choosing exports.

In Africa, 90% of rural areas have no electricity supply, many small towns have basically no street lights, and the basic lighting and municipal lighting market has great potential. Moreover, Africa is at the low end of lighting applications, and its performance requirements are not high, low price, long life and durability.

More than 80% of domestic LED products are exported, suffering from serious “export dependence”. The market downturn caused by the European debt crisis in 2011 has made many export-dependent enterprises “very hurt”. Profits have fallen sharply, even on the verge of bankruptcy.

If you switch to the domestic market, traditional lighting companies such as Op, NVC, Jiamei, and Sanxiong have already been involved in LED. These companies have used their mature brands and perfect channels to stir up the domestic LED lighting market. Building channels and brands requires large capital investment and long-term precipitation, which is unbearable for most domestic LED lighting companies.

In the face of financial subsidies and tendering policies, people in the industry feel that the water is too deep, and people without government background can't afford it.

Therefore, in order to seek development, the search for a new seaport has become the top priority for the development of domestic LED companies. However, to open up a new market, it is necessary for the company to conduct in-depth and meticulous research and evaluation in the early stage. After all, knowing ourselves and knowing each other can be a battle.

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