Domestic LED exports fell sharply in India BIS certification or trade mode change

Each intern reporter Qiu Dekun

Recently, the media reported that India in October 31st ushered in the year of Diwali in the most important, but by social media set off a boycott of goods China wave spread to India and more, the lantern festival lanterns and LED lamp row Chinese production, sales in Mumbai fell by 30% to 50%.

Daily economic news reporter to engage in India LED trade stakeholders confirmed that, in its trade, the number of domestic LED exports to India fell by nearly 80%. But the government of India in the last year, the introduction of the import to India LED BIS certification, strict implementation of this year, not the result of social media boycott.

A person engaged in trade in India LED said, based on the above factors, has begun to change the way to engage in the trade of India LED, the future will be the export of LED parts and high-end LED based.

BIS certification as the main cause of decline

Public information, BIS certification refers to the India Bureau of standards (TheBureauofIndianStandards, hereinafter referred to as BIS) for the specific product certification.

A person engaged in India LED trade insiders, similar to the domestic BIS certification 3C certification, from the start of May last year, recently began to strictly enforce, making no domestic BIS certified LED enterprises to enter the market in India.

LED lighting company India Linsen executive Lin Yida believes that India does appear to resist the lights before the Chinese LED phenomenon, but only a few. The current number of media coverage of the India Diwali LED sales changes, because many are based on retail, data is difficult to measure.

Linyida further explained that the number will appear in the domestic LED exports to India fell sharply, mainly because of the domestic production of LED has not been in accordance with the corresponding standards, strict implementation of BIS certification, the domestic LED can not enter the market in India. Although this requirement for all imports of LED in India, but the domestic production of LED accounted for the mainstream of the non-standard market in India LED.

Guangdong electrical and lighting association secretary general Guo Xiu analysis, so far, India voltage instability, resulting in unable to provide the effective use of the LED environment, and India's LED market is chaotic, is very sensitive to the price of LED, businesses pay more attention to the price of LED. The domestic LED production enterprises in line with the standard does not meet the standard of LED, the price difference of about 3 times. This leads to domestic exports to India LED, mostly for domestic smes.

However, in addition to the strict implementation of the BIS certification of the India government, after the domestic production of LED has the advantage of low-cost gradually disappear. Wang introduced, and now the domestic production in line with the specifications of the LED, the price has been similar to China's LED, which weakened the India consumers in the purchase of LED when considering the price factors.

Export LED parts and high-end products

Strict implementation of BIS certification and low price advantage disappeared, although the domestic LED exports to India is blocked, but based on the huge demand for the India LED market in the future, the domestic LED companies and traders began to change the trade mode.

Zhongshan Han Feng Lighting Co., Ltd., general manager Luo Duanxing said that the company has not yet officially entered the India LED market, but has been concerned about the preparation in the future to choose to enter. Although the BIS certification to a large number of domestic LED to export to India, but in the domestic procurement of LED accessories, to go to India assembly, the India government will give tax rebates and subsidies to enterprises, these enterprises to give priority to the use of local resources, because promote local employment, and the labor cost is far lower than the domestic.

Guo Xiu introduced, many of the original India purchaser to Chinese to purchase LED, more contact with the low-end LED manufacturing enterprises, but also because they act as a go-between role trader in which play a role, so that these enterprises occupy the non-standard market in India LED. And those who do the successful transformation of high-end LED enterprise, because there is no communication from traders, it is difficult to enter the LED market in India.

According to the "daily economic news" reporter learned that the current domestic LED listed companies, only M.L.S. (002745, SZ) set up a large scale factory in India. Mainly responsible for market operations in India Linsen Linyida said, although India's domestic consumption level is low, but the future of the India market demand for large LED. Prior to the India government for replacement of national more than 700 million ball bulb, to consider Linsen directly in the local production, or provide semi-finished LED. It is because of the MLS to provide is LED components and semi-finished products, as LED spare parts suppliers, as long as the purchaser is BIS certification can be.

A person engaged in trade in India LED believes that the future trend of doing LED India trade will turn to LED parts, providing more professional technical services. In addition, based on the gap between rich and poor in India is relatively large, from the more segments of the field, will consider the high-end LED trade.

However, the current India LED market can only do LED product packaging. Wang introduced, the current majority of imported raw LED from India, China, India does not have the production conditions.

Guo Xiu analysis, many of the India national industrial park to domestic investment, but the technology industry in India is relatively backward, not perfect transportation, logistics and other support, sales network set up difficulties, while domestic production line is already formed more perfect LED products.

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