LEDinside: India lighting market products, channels and entry strategy analysis

India lighting market is developing rapidly, TrendForce's green energy division of LEDinside's new "2016 India lighting market research report pointed out that in 2016 the LED lighting market size of $1 billion 140 million, the annual growth of 47.1%. With the India government plans to build India into the East Asia and the Gulf lighting products export hub, OSRAM, Toshiba and other international manufacturers have been in India as a global market production base, so India LED lighting market of domestic and external demand is huge, the next two or three years will be rapid growth in market size. LED lighting market is expected to reach $1 billion 715 million in 2020. For today's LED industry, although the Chinese market is a big cake, but in view of overcapacity and price competition, it is necessary to open up new markets. India, as an emerging market with great potential, has attracted a lot of international leading manufacturers to launch an attack and use it as the next production base. Not only because of China - India preferential tariff policy, but also because of its market itself positive stimulus.

The current LED lighting market in India is still in its infancy, with the rising domestic demand in the India market, Make in India concept, zero tariff and other opportunities, will bring more business opportunities for lighting manufacturers. At the same time, lighting products in the specification has gradually improved. The diversity and particularity of the channel, the difference between the various sectors of the lighting industry chain environment, but also to enter the India market, manufacturers need to focus on factors.

Market favored high cost of basic products

Ball bubble lamp, for example, according to the India bulb bulb Market luminous flux specifications can be divided into 200-950lm, 1200-1800lm two specifications, prices are mostly concentrated in USD2-6 and USD4.5-10. The India market mostly by B22 holder, India local manufacturers to launch the LED bulb lighting efficiency is about 100lm/W, the enterprise global bulbs specifications in the design of LED ball, in addition to grasp the different level of lumen value, basic product cost-effective tool to enter the market in India.

In the street lamp part, the main specifications of the LED street lamp Market in India are as follows: the color temperature is 4000-6500K, the luminous efficiency is more than 100lm/W, the color rendering index is above 70, and the IP grade is at least IP65. Most of the local manufacturers to launch products for a wide range of voltage, and the introduction of more 90W below the LED street lamp. When entering the street market, manufacturers should take the case as a guide, according to the requirements of the design of the product line, in order to expand their product market influence.

Engineering projects and lighting market as the main lighting channels

Select the appropriate channel is also a key factor into the India market. In several major India LED lighting market channels, the project accounted for the largest share of the project. The main reason is that the government of India actively promote the replacement of lamps and lanterns to subsidize and tender to promote LED lighting. In addition, the lighting market in the sale of LED lighting products also occupy a larger proportion. This type of channels in a variety of products, brands, the price from the high-end to the lower end of the more comprehensive. In recent years, more and more Chinese brand products appear in the market.

In addition, due to the particularity of retail form, India also has lighting channels with local characteristics, manufacturers also need to consider the feasibility of this type of channel and the influence in the market, which is more comprehensive and accurate local lighting market layout.

Comparing the above two channels, through government contracts can quickly enter the local market, but the India government for the development of the local LED industry, in the choice of suppliers, more local enterprises, more difficult to enter, cooperation with local manufacturers, bundled bidding, in addition to government standard products of low price, high performance requirements plus, the need for special political and business relations to enter this market, in time, cost management, enterprise can get profit is very limited. Lighting market access threshold is low, but need to spend a lot of manpower, material and time.

Distinguish the environmental difference of each link of the industrial chain, and choose the market entry strategy

Due to the differences in the market environment, LED manufacturers in the middle and lower reaches of the India market, the choice of strategy should also be different. Because of the LED industry in India on the middle reaches of the industrial chain lack of overseas manufacturers when entering the LED market in India, not only did not compete with local manufacturers, but also by the local government's policy support, but the India market is sensitive to price, so more suitable for large scale and cost advantages of the enterprises to enter the.

In addition, in order to respond to the government's policy, to meet the huge market demand for LED lighting, India traditional lighting companies are being upgraded, and the local has a large production base of manufacturers are of considerable size and resources, which will bring a lot of opportunities for LED equipment manufacturers.

In the lower part of the lighting, there are a small number of local lighting manufacturers in India, the India government in policy and market opportunities are strongly supported by these manufacturers. In addition to local manufacturers, as well as Philips, OSRAM, Matsushita and other international companies in the local pitch camp for a long time, Chinese lighting manufacturers to enter the local market is not easy. Analysis into four aspects from the strategy so the strategic choice, government relations strategy, channel strategy, product strategy for the local market, identify their own position, to win a space for one person in the huge potential of the lighting market in India.

King Wen Ting analyst /LEDinside

LEDinside2016 India Lighting Market Report

Publication date: July 31, 2016

Language: Chinese / English

Format: PDF

Pages: 13