Weak demand in Europe and the United States market leading LED market in Russia

In recent years, the demand for LED lamps has increased significantly in emerging markets such as Russia.

The bad news flyers in the European and American markets are the output value of the above two LED major projects in Russia, reaching over 3 billion yuan a year. Although it is a different investor's investment, behind similar investment strategies is the same industrial background.

As an emerging industry, China's LED lighting industry and the photovoltaic industry have a common fatal weakness? ? The three are outside: the core raw materials are overseas, the technologies are overseas, and the markets are overseas.

The data shows that 80% of domestic LED companies' products are mainly export-oriented. Under the influence of the European economic crisis and the inability of the US economy to recover, orders for LED lighting companies have continued to decline since the second half of last year. The information passed at the 111th Canton Fair recently held shows that from the beginning of the year to now, the domestic LED companies' orders from Europe and the United States have fallen by 30%.

Reduced orders directly led to a decline in many businesses. In this context, some people in the industry believe that the domestic LED lighting companies' export situation may be even worse in the second half of this year. To solve this dilemma, besides further expanding domestic demand, seizing the emerging market becomes an inevitable choice for enterprises. This includes the huge Russian market.

In the last seven years, Russia's annual economic growth rate has remained at 6%? Between 7%, such an active economic environment led the construction industry to thrive, and the Russian lighting market has also been strongly promoted. The demand for outdoor and indoor lighting appliances has increased significantly, and the import volume of lighting products has increased significantly.

In addition, the "Energy Conservation and Energy Efficiency Improvement Act" adopted by the Russian State Duma has also made many LED companies very interested in the Russian market. The law stipulates that starting from January 1, 2013, Russia banned the production and sale of incandescent lamps of more than 75 watts; from 2014, it prohibited the production and sale of incandescent lamps of more than 25 watts. This means that in the future Russia will become an extremely demanding market for LED lighting facilities.

Statistics show that the consumption of incandescent lamps in the Russian market in previous years remained at a scale of 800 million/year. Last year, sales of incandescent lamps fell sharply, with only 500 million sold. Fluorescent lamp sales continued to rise, with sales reaching 200 million units throughout the year. Although the market share of LED lighting products is only 4% (US$180 million), the growth has begun to appear. According to Philips' forecast, demand for the Russian lighting market will increase at a rate of 48% per year in the next few years. LED-based lighting products are expected to reach a market size of US$1 billion in 2015, and the international market share will also be 5% nearby positioning.