Russia: Expand Sino-Russian LED product trade and attract Chinese LED companies to set up factories in Russia

Grudev, representative of the Russian Federation's Commercial Representative Office in China, said at the "Russia and CIS Countries Lighting Market Analysis and Channel Strategy Conference" held in Shenzhen on the 15th that Russia hopes to further increase the total trade volume between China and Russia in the LED industry and attract China's advanced LED companies to set up factories in Russia. Grudev said that in 2013, the Russian LED industry developed rapidly, with a growth rate of 250%, and LED lighting accounted for 10% of the market share of the Russian lighting industry. Data show that in the lighting market in 2013, the sales volume of Russian LED bulbs was 1 billion, with sales of 40 billion rubles. The Russian government has introduced a series of measures to promote energy-saving light sources. It is expected that by 2016, LED lighting's market share in the Russian lighting industry will increase to about 35%. According to Grudev, more than 50% of the Russian LED industry is imported products. "If the proportion of accessories is higher, it reaches 70%." Dr. Li Wenyu of the Guangdong Emerging Industry Strategic Development Research Institute said that in 2013, China exported LED products to Russia and CIS countries totaling US$800 million, of which Russia accounted for 75.74%. Chinese LED products account for more than 40% of the Russian market. Grudev said that in terms of LED industry development, Russia’s goal is to increase the total trade volume of the LED industry between China and Russia, and the second step is to attract advanced Chinese LED companies to set up factories in Russia. Sui Shirong, director of the Guangdong Provincial Semiconductor Lighting Industry Joint Innovation Center, said that at present, Chinese LED companies enter the Russian market mainly through local dealers and engineering companies. As trade volume continues to expand, Chinese companies will definitely set up factories in Russia in the future, taking into account logistics costs and Russia's policy support for local products.