In recent years, India vigorously subsidy LED bulb replacement, hoping LED lighting policy to reduce dependence on imported energy. India Power Energy recently pointed out, the second half of 2016 LED bulbs daily shipments will reach one million by 2018 will be fully replaced by LED bulbs, the overall size of about 770 million, has become a war zone the global LED lighting market.

As a high-potential emerging markets, the Indian market has become the focus of many LED enterprises compete. Recently, Philips Lighting in LED Bulb tenders Indian government disclosure, resorted to “price Shazhao” with a price of just 0.57 dollars (about 3.8 yuan) of 9W LED bulb participate in the tender. The price is higher than the earlier bid price in March this year, 30.8% lower. It is foreseeable that Philips Shazhao prices will increase the degree of competition in the Indian market. smbd-101

Although the demand for LED lighting products in India jumped, but Philips, Osram and other international lighting giants have used the “price war” to seize the market, leading to the Indian market LED prices drop rapidly, China LED enterprise layout Indian market will face significant competitive pressure .

India’s favorable policies, LED lighting market potential

The global economy is still in the doldrums, the rapid economic growth in India has become a bright spot. India’s leading lighting products currently used or inefficient GLS, and other products, the implementation of the Government of India under the “efficient lighting plan” and India “State street plan” policy, India’s LED lighting market showing rapid growth, in 2015 the market scale reached 924 million US dollars in 2016 LED lighting market will reach 1.14 billion dollars, an annual growth of 47.1%, estimated in 2020 will rise to $ 1.715 billion. With the Indian domestic market rising, Make in India the concept of chance, such as zero tariff will bring more business opportunities for lighting manufacturers. 54hc123

With the Indian government intends to fight the East Asia and the Gulf States, India create lighting products export hub, Osram, Toshiba and other international companies have India as a production base for the global market, so the Indian LED lighting market in domestic and external demand is huge, next two to three the market will grow rapidly.

For today’s LED industry, although the Chinese market is a big cake, the view of the overcapacity and price competition, open up new markets is still very necessary. India, as a high-potential emerging markets, has attracted many of the world’s leading manufacturers started to attack, and as the next production base. Not only because China – India preferential tariff policy, but also because of its own market “feel good” of stimulation, China LED companies is also being accelerated layout Indian market.

China LED companies competing layout, product exports surge in India every year

Currently, the Indian government is strongly promote the popularity of LED energy-saving lamps, including government buildings, street lights and the general public to promote LED energy-saving lamps to promote family package at the beginning of this year, Moody’s announced the Prime Minister. “Package” plan quietly landing, which is bound to quickly pulled LED lighting market demand, the future of the Indian LED lighting market with a bright future.

India’s huge market potential has attracted many companies competing lighting layout. Although the international LED lighting giant price powerful offensive, but OFweek semiconductor lighting network Xiaobian opinion, China LED companies cost-competitive, is conducive to seize business opportunities in the Indian market. By 2015, LED packaging Linsen hand in leading Taiwan-based LED crystal grains leading power in the Indian joint venture set up factories, and gradually enter the Indian local winning tenderer LED components supply chain.

In addition, Foshan lighting, country star power, Hongli Opto-electronic and other LED manufacturers are also actively layout LED lighting market in India, due to the lighting standard case of Indian companies bidding must meet revenue, production scale and manufacturing capacity requirements, and about 5 to procurement cases will be provided to local lED factory, which is expected to drive Chinese lED manufacturers and local manufacturers in India to India to invest and build factories or allied boom.

Today, Chinese enterprises gradually open the LED lighting market in India, and the surge in exports year by year occupation of the market. According to Chinese customs data that, 2011–2015, China’s LED lighting products to India’s total export growth has been in a state of rapid growth. 2015 China total exports of India LED lighting products for $ 200 million, representing an increase of 42.1% over the same period in 2014. And the data show that from January to December 2015, India LED lighting products in importing countries, with China accounting for 75.4% of imports in the first row.

Opportunities and challenges, companies must develop appropriate strategies

LED industry development in India has been the Indian government’s support, the government issued a series of dimensions from various policies to support the development of the whole industry, the core of which is the Indian National street plan (SLNP) and India Efficient Lighting Program (DELP), which public works tenders two projects also covers the current one-third of the local market.

In order to promote the popularity of LED lighting products, the Government of India in the official standard case continue to drive down the price of the product, but also continuous improvement of LED product specifications, resulting in LED profit space is very limited, for manufacturers, business opportunities and challenges.

Currently, the Indian LED lighting market in the early growth stage, local supply chain is not complete, although India has a certain number of assembly, design and manufacture of LED lighting company, but the LED chips and LED packaging all rely on imports, some large-scale LED lighting companies and even directly from Chinese imports of finished or assembled their own purchase semi-finished products from China; small businesses become more dependent on imports. The next two years, although the Indian government will continue to encourage domestic manufacturing of lighting products over-reliance on imports will improve the situation, but in the absence of the upstream industry chain in a short time is difficult to change the situation.

In the downstream part of the lighting, the presence of a small number of local Indian lighting manufacturers with a certain scale, the Indian government on the policy and market opportunities are vigorously support these companies. In addition to local companies, as well as Philips, Osram, Panasonic and other international companies are local camp a long time, Chinese companies to enter the local lighting market is not easy. So we should choose four-pronged strategy, government relations strategy, channel strategy, product strategy, etc. to enter the local market strategy analysis, identify their own position, before they can successfully won a place in the huge potential of the Indian lighting market.