India: the new "detonating point" of the LED lighting market

With the maturity of LED lighting applications, emerging markets have accelerated the introduction of LED lighting. The emerging market is a "new continent" aimed at the domestic LED export enterprises. In the emerging markets, India is the second largest population in the world, and its economic growth and market volume can not be underestimated.

As the level of manufacturing industry in India is not high at present, the overall level of LED lighting products on the market is low. Compared with the European and North American markets with higher threshold, domestic enterprises are likely to enter the ranks of high-end products in India market. In addition, the India government is planning to encourage the use of LED products, and experts in the industry believe that the annual growth rate of the India LED market may be more than 40% in the future, which has become a new position in the domestic LED enterprises.

Furthermore, there is no unified electricity price in India, and all cities and cities have their own regulations. Electricity charges are generally taken in a ladder type, and the more charge is increased in geometric figures. Due to the high proportion of privatization of India electric power supply, private power companies are reluctant to supply power for rural areas, making the rural power shortage very serious. India's slums are world-famous, and their scale is spreading silently and quietly eating out of the city. If the municipal authorities have to carry out the cable maintenance and the high pressure line, they will face the problem of removing the slums. The slum owners, though they are at the bottom of the society, hold the "sword of the square" that the politicians are afraid of, which is the ballot. In every India election or local election, the huge number of slum voters is a powerful political force that any politician does not dare to ignore. Politicians in India are particularly cautious about demolition, and there are few dismantling events. The result is that the city's municipal construction in most of India's cities almost stops, the roads are broken and the power facilities are aging.

It is due to the backward infrastructure and low degree of urbanization in India, which seriously restrict the development of all aspects of India, and these problems need to be solved urgently. Therefore, in the development of India, these will be the key projects, these areas will be a huge cake, with a very large market potential, and India national lighting products nearly 80% from China, China in India, whether it is the word of mouth or sales channels have certain advantages. In April 2, 2014, the international semiconductor lighting Alliance (ISA) held a "global semiconductor lighting city application seminar" in Frankfurt, Germany. Mr. Agger pointed out that the lighting power consumption in India accounted for 20% of the country's electricity consumption, and the LED lighting market would reach $470 million in 2015 and 60% of the street lighting. The largest users of LED lighting are government, commercial and industrial circles in turn. The civil market, because of its relatively high price, and the lack of understanding of the LED lighting in India, is low in recognition, and the demand for LED civil lighting is not very large.

India official released an economic report in July 9th that the economic growth rate of India in 2014-2015 fiscal year was 5.4%-5.9%, and the India power grid introduced foreign capital for the first time and developed large transmission projects. The Standard Chartered private equity investment plans to invest 5 billion rupees (about 520 million yuan) for the grid infrastructure business under India's grid infrastructure business, which is the first foreign investment in the India power grid. The Power Grid Corp, which is mainly engaged in the development and operation of transmission projects, will issue a few convertible securities for Standard Chartered private equity investment, which will be used as an existing and new transmission project to provide a more optimized and more advanced power transmission solution for the telecommunications and electricity industries.

At present, about 300 million of the population in India can not enjoy the benefits of the power grid. Because of the lack of local core technology in India, the main LED lamps and lanterns depend on the import. Compared with the traditional lamps, the price of the LED lamps is very expensive. Therefore, the lighting of India LED is mainly outdoor. With the development of India economy, the coverage and supply of electricity will increase, and the demand of the civil market will increase sharply.

When the reporter searches for LED light bulbs on Taobao, low priced civilian lighting LED bulbs have been very hot, the volume is considerable, and the price of 1.5~2 yuan is most, and the high-end OPPLE light is also between the 25~30 yuan. The price advantage and brand image are the most important factors that affect the fierce competition in India's lighting market. The distribution of electricity in India is uneven, the coverage is low, and the supply is far from the demand. In some cities in India, only a few rich people can use electricity, and only three or four hours are supplied, and many poor people are still using the lantern. The so-called "flow of resources", only increase production and reduce consumption can make the power resources of India rational use, and improve people's living standards. Energy saving lighting technology and the alternative technology that needs to be developed are becoming more and more important. In the general election in India, the newly appointed prime minister, Modi, promised to install at least one bulb in every household by 2019. This adds to the confidence of the LED lighting in the civil market.

In order to promote the development of the LED industry, the government of India offered two measures, one is that the LED chip factory (FAB) is incorporated into the incentive regulation MSIPS (Modified Special Incentive Package Scheme), and the industry can enjoy a refund subsidy of 2 percent of the cost, but the initial investment should not be less than 50 million dollars, both local manufacturers and foreign capital are applicable. The purpose is to Encourage the establishment of a local semiconductor fab in India.

In addition, in accordance with the official preferential market access policy, the government procurement case will provide 5 per cent to the local LED related product manufacturers (the value of the product must be increased by 50%), but there is no special discount at the price and specifications of the bidding. The aim is to allow local manufacturing LED plants to enter the local market.

At the same time, China has bilateral trade agreements with ASEAN countries, and LED products exported to these countries can enjoy low tariff or even zero tariff. These all reduce the threshold of the LED lighting industry that wants to enter India. For the civil market, the demand for lighting is not as high as that of the industrial market. As long as the lighting of daily life is satisfied, especially in the India market, the differences in the residential area are also high and low for the light bulb. The market of LED semiconductor lighting bulbs with low price, energy saving and long service life is huge.

According to the organizers of the India project Commissioner to the reporter, LED semiconductor lighting advantages are very obvious, because of its long energy saving life long environmental protection is in line with the needs of modern development, the status of India and the future development trend, the civil market is a huge potential market, but this market also depends on the government of India government The construction and expansion of electricity to infrastructure.

In addition, China's LED enterprises want to enter the India market successfully, to concentrate on the understanding of the India market, know the attitude of the Indian government to China's LED enterprises and the requirements for the entry of LED products. In addition, according to the different market demand, we can introduce different levels of consumer lamps and lanterns, at the same time, in order to expand the market share of the middle and low end sales market, we should introduce the lamps and lanterns to meet the common consumer, in order to expand the market share of the middle and low end market.

Under the concept of "channel is the king" in the current market, China's LED enterprises should plan actively and prepare early for the possible future development and change. From the most basic lighting demand to the aesthetic needs of decoration, the demand of the civil market is varied, and the people's respective preferences are different, so in the civil market, many aspects should be considered and many kinds of designs are designed to meet the needs of the people.

For more information on LED, click on the Chinese LED network or pay attention to the WeChat public account (cnledw2013).