Since the current manufacturing level in India is not high, the overall level of LED lighting products in the market is low. Compared with the European and North American markets with higher thresholds, domestic companies may enter the ranks of high-end products when they turn to the Indian market. In addition, the Indian government is planning to encourage and promote the use of LED products. Some industry experts believe that the annual growth rate of the Indian LED market may even exceed 40% in the future, becoming a new front for domestic LED companies to actively "grab the beach".
Furthermore, there is no unified electricity price in India. Each state and city has its own regulations. Electricity fees are generally charged in a stepped manner. The more electricity is used, the more charges increase geometrically. Due to the high proportion of privatized power supply in India, private power companies are unwilling to provide power to rural areas, making the power shortage in the vast majority of rural areas very serious. India's slums are world-famous, but they are spreading silently, eating away at cities. Municipal authorities will face the problem of slum demolition if they want to carry out cable repairs, erection of high-voltage lines, etc. Although these slumlords are at the bottom of society, they hold the "sword of wisdom" that politicians are afraid of: votes. In every Indian general election or local election, the huge number of slum voters is a powerful political force that no politician dares to ignore. Indian politicians are extremely cautious about demolitions, and forced demolitions rarely occur. As a result, municipal construction in most cities in India has almost come to a standstill, with serious problems such as damaged roads and aging power facilities.
It is precisely because of India’s backward infrastructure and low urbanization that it seriously restricts India’s development in all aspects. These problems need to be solved urgently. Therefore, these will be key projects in the development of India. These areas will be a huge cake with very large market potential. Nearly 80% of lighting products in India come from China. my country has certain advantages in terms of reputation and sales channels in India. On April 2, 2014, the International Semiconductor Lighting Alliance (ISA) held the "Global Semiconductor Lighting City Application Seminar" in Frankfurt, Germany. Mr. Taniyama Agger pointed out that India's lighting power consumption accounts for 20% of the entire country's power consumption. The LED lighting market will reach 470 million US dollars in 2015, and street lights will account for 60% of it. The largest users of LED lighting are government, commercial and industrial sectors. The civilian market has low recognition due to its relatively high price and the lack of understanding of LED lighting among the Indian public. The demand for LED civilian lighting is not very large.
Indian officials released an economic report on July 9, stating that India’s economic growth rate in the 2014-2015 fiscal year was 5.4%-5.9%, and the Indian power grid introduced foreign investment for the first time to develop large-scale power transmission projects. Standard Chartered Private Equity plans to invest 5 billion rupees (approximately RMB 520 million) in Street Grid, the power grid infrastructure business of India's Street Industries. This is also the first foreign investment in India's power grid. Sterlite Grid Company is mainly engaged in the development and operation of power transmission projects. It will issue a small number of convertible securities for Standard Chartered's private equity investment. The funds obtained will be used for existing and new power transmission projects to provide more optimized and advanced power transmission solutions for the telecommunications and power industries.
Currently, approximately 300 million people in India fail to enjoy the benefits brought by the power grid. Due to the lack of local core technology in India, major LED lamps rely on imports. Compared with traditional lamps, LED lamps are quite expensive. Therefore, LED lighting in India is mainly used for outdoor applications. With the development of India's economy and the improvement of power coverage and supply, the demand in the civilian market will surge significantly.
When the reporter searched for LED light bulbs on the Taobao website, low-priced civilian lighting LED light bulbs were already very popular, with considerable transaction volume, and most of them cost 1.5 to 2 yuan with free shipping. Mid-to-high-end Opple lighting bulbs were also between 25 and 30 yuan. Price advantage and brand image are the most important factors affecting the fierce competition in the Indian lighting market. The distribution of electricity energy in India is uneven, the coverage rate is low, and the supply is far from meeting demand. In some cities in India, only a few wealthy people can use electricity, and the supply is only for three or four hours. Many poor people still use lanterns. The so-called "increasing revenue and reducing expenditure" means that only by increasing production and reducing consumption can India's power resources be rationally utilized and people's living standards improved. Energy-saving lighting technologies and the need to develop alternative technologies are also becoming increasingly important. During the Indian general election, newly-appointed Prime Minister Narendra Modi promised that every household would be able to install at least one bulb by 2019. This has increased confidence in the application of LED lighting in the civilian market.
In order to promote the development of the LED industry, the Indian government has introduced two measures. One is to include LED chip factories (fab) in the incentive regulations MSIPS (Modified Special Incentive Package Scheme). Businesses can enjoy a refund subsidy of 20% of the construction cost, but the initial investment must not be less than 50 million US dollars. This applies to both local manufacturers and foreign investment. The purpose is to encourage the construction of semiconductor fabs in India.
In addition, according to the official preferential market access policy, the government procurement project will provide 50% of the quantity to local LED-related product manufacturers (the product value must be increased by 50%), but there will be no special discounts on bidding prices and specifications. The purpose is to allow locally manufactured LED factories to enter the local market.
At the same time, my country has bilateral trade agreements with ASEAN countries, and LED products exported to these countries can enjoy low or even zero tariffs. All of these have lowered the threshold for entering the LED lighting industry in India. For the civilian market, lighting requirements are not as high as the industrial market. As long as they meet the lighting requirements of daily life, especially for the Indian market, the requirements for light bulbs vary depending on the region where they live. Then the market for LED semiconductor lighting bulbs with low price, energy saving and long service life is huge.
According to the organizer's Indian project specialist, the advantages of LED semiconductor lighting are very obvious. Because of its long energy-saving life and environmental protection, it is in line with the needs of modern development. In view of India's current situation and future development trends, the civilian market is a huge potential market, but this market also relies on the Indian government's construction and expansion of electricity and infrastructure.
Moreover, if Chinese LED companies want to successfully enter the Indian market, they must focus on understanding the Indian market and be familiar with the Indian government’s attitude towards Chinese LED companies and LED product entry requirements. Furthermore, lamps that cater to different levels of consumers can be launched according to different needs of the market. At the same time, in order to expand the share of the mid- to low-end sales market, lamps that cater to ordinary consumers should be launched to expand the market share of the mid-to-low-end market.
Under the current market concept of "channel is king", my country's LED companies should actively plan and prepare early to prepare for possible future developments and changes. From meeting the most basic lighting needs to decorative aesthetic needs, the needs of the civilian market are diverse, and people's preferences are also different. Therefore, when entering the civilian market, multiple considerations and multiple designs must be considered to meet people's needs.
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