PHILPS to seize the market in India, China LED enterprises face challenges

Despite the surge in India LED lighting needs, but PHILPS, OSRAM and other international lighting giant with "price war" to seize the market, leading to the India market LED products prices fell rapidly, the layout of LED enterprise Chinese India market will face great pressure of competition.

In recent years, India vigorously subsidize the replacement of LED bulbs, hoping to reduce dependence on imported energy LED lighting policy. India pointed out that the Ministry of energy before the second half of 2016 LED bulbs daily shipments will reach 1 million, to 2018 will be fully replaced by LED lighting, the overall size of approximately 770 million, become the global LED lighting market level of the theater.

As a potential emerging market, the India market has gradually become the focus of contention for many LED companies. Recently, PHILPS lighting in the India government public LED bulb project bidding, using "price Shazhao" with a price of only $0.57 (about 3.8 yuan) of the 9WLED bulb to participate in the bidding. The price is 30.8% lower than the price of the bidding products in March of this year. It can be predicted that the price of PHILPS will increase the competitiveness of the India market competition.

Despite the surge in India LED lighting products, but PHILPS, OSRAM and other international lighting giant have to use the "price war" to seize the market, leading to the India market LED products prices fell rapidly, the layout of LED enterprise Chinese India market will face great pressure of competition.

India favorable policies, LED lighting market potential

In the global economy is still in the doldrums, the rapid growth of India's economy has become a bright spot. India is currently using GLS or inefficient lighting products and other products, in the implementation of the government of India "efficient lighting plan" and "India state street plan" policy, LED lighting market in India show rapid growth momentum, the market size in 2015 reached $924 million in 2016, LED lighting market will reach $1 billion 140 million and the annual growth of 47.1%, estimated in 2020 will rise to $1 billion 715 million. With the continuous improvement of domestic demand in the India market, Make in India concept, zero tariff opportunities, lighting manufacturers will bring more business opportunities.

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.

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, Chinese LED companies are also accelerating the layout of the India market.

Chinese LED companies competing layout, product exports India surge year by year

At present, the government of India is strong promotion LED energy-saving lamps popular at the beginning of this year, Prime Minister Moodie announced include the promotion of package in the government office buildings, street lights and ordinary people to promote family LED energy-saving lamps. Package quietly landing, which is bound to quickly pull up the LED lighting market demand, the future of India LED lighting market prospects.

India huge market potential, attracting many lighting companies competing layout. Although the international LED lighting manufacturers price offensive fierce, but in the OFweek semiconductor lighting network Xiaobian look, Chinese LED companies have cost competitiveness, is conducive to seize the market opportunities in India. In 2015, LED package to Taiwan LED leading Linsen leading grain crystal electric in India set up a joint venture, and gradually into the India local contractor LED components of supply chain.

In addition, FSL, nationstar, honglitronic other LED manufacturers also actively layout of India LED lighting market, the India lighting standard case bidding manufacturers must comply with the revenue, production scale and manufacturing capacity requirements, and about 5 into the purchase case will be provided to the local LED manufacturing plant, which is expected to drive China LED India local manufacturers and manufacturers alliance or to invest and build factories in India boom.

Today, Chinese companies are gradually opening up the India LED lighting market, and the annual surge in the size of the export occupation of the market. According to Chinese customs data, 2011-2015 China's total exports of lighting products in India LED growth rate has been in a state of rapid growth. 2015 China's exports of India LED lighting products amounted to $200 million, representing an increase of 42.1% over the same period in 2014. And data show that in 2015 1-12 months, India LED lighting products imported countries, China accounted for 75.4% of the proportion of imports in the first place.

2011-2015 China's total exports of LED lighting products in India

Opportunities and challenges, enterprises must formulate appropriate strategies

The development of LED industry in India by the India government support, the government promulgated a series of policies to support the development of the whole industry from various aspects, of which the core is the India state street plan (SLNP) and India efficient lighting plan (DELP), the two project of the government engineering standard also covers the current market size local 1/3.

In order to promote the popularity of LED lighting products, the government of India prices down product in the official standard case, but also continuously improve the requirements for LED product specifications, resulting in very limited LED profit margins for manufacturers, business opportunities and challenges.

At present, India L