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India: new "tipping point" of LED lighting market

Time:2018-11-19 FONT:bigMinmin


With the maturity of LED lighting applications, emerging markets are accelerating the introduction of LED lighting. Emerging market is a "new continent" aimed at domestic LED export enterprises. In emerging markets, India, as the second largest country in the world, its economic growth and market volume should not be underestimated.

Because the level of manufacturing in India is not high, the overall level of LED lighting products in the market is relatively low. Compared with the high threshold European and North American markets, domestic enterprises turn to the India market and are likely to enter the ranks of their high-end products. In addition, the India government is planning to encourage the use of LED products. Some industry experts believe that the annual growth rate of LED market in India will probably exceed 40% in the future, which will become a new position for domestic LED enterprises to "seize the beach" actively.

Moreover, India does not have a unified tariff. Every country has its own regulations. Electricity charges are generally charged by ladder type, and the more electricity charges, the more geometric charges. Due to the high proportion of privatization of electricity supply in India, private power companies are reluctant to supply power to rural areas, causing widespread shortage of electricity in rural areas. The slums of India are world-famous, and their scale is spreading silently, quietly eating the cities. If the municipal authorities want to carry out cable maintenance and erection of high voltage lines, they will face the problem of demolition and slums. Although the slums are at the bottom of the society, they are holding the "sword of the Shang" which is feared by politicians. In every election or local election in India, the huge number of slum voters is a powerful political force that no politician can afford to overlook. Politicians in India are especially cautious about demolition, and rarely take demolitions. As a result, municipal construction in most cities of India is almost at a standstill, with serious road damage and aging of power facilities.

It is precisely because of the backward infrastructure and low level of urbanization in India that seriously restricts the development of all aspects of India. These problems need to be solved urgently. Therefore, in the development of India, these will be key projects. These fields will be a huge cake with great market potential, and nearly 80% of India's national lighting products come from China. Our country has certain advantages in India, whether it is word of mouth or sales channels. In April 2, 2014, the international semiconductor lighting Alliance (ISA) held the "global semiconductor lighting city application seminar" in Frankfurt, Germany. Mr. Agger said that India's electricity consumption accounts for 20% of the country's total electricity consumption, and the LED lighting market will reach $470 million in 2015, while street lighting will account for 60% of the total. The largest users of LED lighting are government, commercial and industrial sectors. The civilian market is relatively low in price because of its relatively high price and the lack of knowledge of LED lighting in India. LED civilian lighting needs are not very large.

India official issued an economic report in July 9th, saying that India's economic growth rate was 5.4%-5.9% in the 2014-2015 fiscal year, and India power grid introduced foreign capital for the first time to develop large-scale transmission projects. The Standard Chartered private equity investment plan has invested 5 billion rupees (about 520 million yuan) for India's grid infrastructure business, Power Grid Corp, which is also the first overseas investment of India power grid. Power Grid Corp is mainly engaged in the development and operation of transmission projects. It will issue a few convertible securities to Standard Chartered private equity investment, and the funds will be used for existing and new transmission projects, providing more optimized and more advanced power transmission solutions for Telecom and power industries.

At present, about 300 million people in India are unable to enjoy the benefits from the grid. Due to the lack of core technology in India, the main LED lamps rely on imports. Compared with traditional lamps, LED lamps are quite expensive. Therefore, the lighting of LED in India is mainly outdoor. With the development of India's economy and the increase of power coverage and supply, the demand for the civilian market will increase sharply.

When reporters searched for LED bulbs on Taobao's website, low price civilian lighting LED bulbs were already very hot, with considerable turnover, and the price of 1.5~2 yuan accounted for most of the postal packages. The high-end OPPLE lighting was also between 25~30 yuan. Price advantage and brand image are the most important factors that affect the fierce competition in India lighting market. The distribution of electricity and energy in India is uneven, the coverage is low, and the supply is far from meeting the demand. In some cities of India, only a few rich people can use electricity, and it only supplies three or four hours. Many poor people are still using the lantern. Only by increasing production and reducing consumption can we make rational use of India's power resources and raise people's living standards. Energy saving lighting technology and the alternative technologies that need to be developed are becoming more and more important. In the general election in India, Modi, the new prime minister, promised that at least one bulb could be installed in every household by 2019. This has increased the confidence of LED lighting in the civilian market.

In order to promote the development of LED industry, the government of India has offered two measures. First, the LED chip factory (FAB) is included in the award regulation MSIPS (Modified Special Incentive Package Scheme). The industry can enjoy a refund subsidy of 2 of the construction cost, but the initial investment should not be less than 50 million yuan. Encourage the establishment of semiconductor fab in India.

In addition, according to the official preferential market access policy, the government procurement case will provide 5 of the quantity to local LED related products manufacturers (the value of products must be increased by 50%), but there is no special discount in bidding price and specifications. The aim is to enable locally manufactured LED plants to enter the local market.

At the same time, our country has bilateral trade agreements with ASEAN countries. The LED products exported to these countries can enjoy low tariffs or even zero tariffs. These have lowered the threshold of the LED lighting industry that wants to enter India. For the civilian market, the demand for lighting is not as high as that of the industrial market. As long as the lighting of daily life can be satisfied, especially for the India market, the difference between the residential areas and the requirements of the bulbs is also high or low. So the market of LED semiconductor lighting bulbs with low price, energy saving and long service life is huge.

According to the India project Commissioner of the organizer, the advantage of LED semiconductor lighting is very obvious. Because of its long life and environmental protection, it is in line with the needs of modern development. According to the current situation and future development trend of India, the civilian market is a huge potential market, but the market also depends on the government of India. The construction and expansion of electric power on infrastructure.

Moreover, China's LED enterprises want to enter the India market successfully. They must concentrate on the India market, and know the Indian government's attitude towards China's LED enterprises and the requirements for LED products to enter. And then according to the different needs of the market, we should aim at the different levels of consumer lamps. At the same time, in order to expand the share of the low-end sales market, we should launch a cater for ordinary consumer lamps to expand the market share.

In the current market with "channel as king" concept, China's LED enterprises should actively plan, prepare for the future, and make corresponding preparations for possible future development and changes. From the basic needs of lighting to the aesthetic needs of decoration, the needs of the civilian market are varied and people's preferences are different. Therefore, when we enter the civilian market, we should consider various designs and satisfy various needs.

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