This paper analyzes the current situation and tren

An article analyzes the current situation and trend of India's LED lighting market

at a time when the global economy is still in the doldrums, the rapid growth of India's economy, huge domestic demand in the market and energy-saving transformation projects have long been heard by global lighting enterprises. At the same time, under the strategic layout of the "the Belt and Road" proposed by China, the Indian market has provided a unique back garden for lighting enterprises that have suffered setbacks in recent years

however, after the author's in-depth field research in BRICs countries, it is found that the Indian market is not as delicious as outsiders look. Good land, labor and taxation are the three major reform problems modi cannot avoid. Similarly, there are the following "three embarrassing problems" in the Indian lighting market:

"embarrassing" problem 1: European and American quality and "hell price". Can you have both

"I gave the floor price, but also the price of the basement. The basement has to go to hell. I didn't expect that there are 18 floors. There is no minimum, but lower." Please note that this is not a street stall bargaining, but the real feeling of a Chinese lighting enterprise after cooperation with Indian merchants

high standards and low prices are the general situation in the Indian market. When visiting the LED lighting exhibition in Delhi, India, more than 80% of the exhibitors who asked and loaded the test piece too long rated the Indian market as "lower price". In addition, Chinese enterprises advertise "no cost price, only market price" to attract most local exhibitors to stop and inquire

due to the unstable power supply, harsh environment (lightning strike) and high road temperature (up to 50 ° in summer), India has high standards for LED products. At the end of 2015, the Indian government mandated that imported LED lighting products need to pass bis certification

from 2017, LED products will be required to be labeled with energy efficiency labels, and the whole lamp efficiency will reach at least 90lm/W. Contrary to its high requirements for products, its price requirements are slightly unreasonable

for example, for 9W power supply, the Indian standard cost is about 1.3 yuan, and the purchase price given by the customer is 1.1 yuan; The North American standard cost is about 1 yuan, and the customer purchase price is 1.1 yuan; The cost of Chinese standard (without standard) is 0.6 yuan and the market price is 0.7 yuan. It can be seen that in operating the Indian market, the pay is not proportional to the harvest, and the enterprises become weaker and weaker, without the passion to open up new territories

"embarrassing" question 2: can a large number of government orders really revitalize the LED market

Saurabh Kumar, general manager of eesl, said in an interview, "We are talking with British utilities and municipal institutions to obtain orders, because we need scale effect to reduce the price of LED, just as we did in India.

however, according to the survey of Chinese enterprises visiting India, the" planning "of the government order is much greater than" market regulation 1. During the maintenance of the main engine of the torque testing machine for auto parts, the fixture should be coated with antirust oil and kept; the jaw should be cleaned often ". The profit of the government is like a roller coaster. In the past, the unit price of the chip was 34 yuan, but now it is 3.6 yuan. The price has fallen too fast. The Indian market is suitable for giants such as Philips and OSRAM

at present, many enterprises that have entered India are stationed in the battlefield in the form of "service providers", which can understand the trend of the local market and explore channels in time; Second, it can also provide solutions for Indian dealers to save their "weak technology" market pain points

for example, in June 2014, meixinsheng Technology Co., Ltd. established an office in New Delhi, India. In June this year, Weidi industry began to establish a local service team and local branches in India

at present, the price of LED products is still high for the Indian market, and ordinary families generally do not purchase them privately. In order to vigorously promote the energy-saving transformation plan, the government had to carry out unified procurement and subsidies. Therefore, orders from India are mostly municipal projects

however, the number of government orders is large, the price is low, and the usual operation process is to pay 50% of the deposit in advance, and the remaining 50% will be paid in the next year. During this period, the purchased lamps shall not have service failure, otherwise the balance payment needs further negotiation

based on this situation, small enterprises that do not have enough funds to operate are simply unable to cope with large orders. Only large enterprises that "do not lack money" such as Philips and OSRAM will boldly catch the "hot potato" thrown by India in order to improve the "meeting rate". Therefore, municipal engineering orders are in the majority, and small enterprises are unable to digest them

"embarrassing" question 3: the popularity of LED is "big cake". Is the global LED production base transferred

the supporting facilities cannot keep up, and the base transfer is far away. As a net importer of primary products and a persistent current account deficit country, India has been trapped in the dilemma of "maintaining growth" and "curbing inflation" for a long time

according to the survey, the salary of local general workers in India is only about yuan/month. Coupled with the government's strong support for local enterprises and the increase of import tariffs on the whole lamp, many businesses who focus on India's potential have not considered attacking the BRICs countries as the next production base

however, the so-called "demographic dividend" has great moisture. Behind it is a strict labor law. In fact, the labor cost of cheap labor is very high. In addition, LED is a technology-based industry after all. Due to the lack of local industrial support in India, the LED industrial chain cannot copy as a whole and can only transfer the simplest assembly link. Therefore, the base transfer is of little significance

at present, there is a difference of 80% between government and private orders, and the Indian market is relatively single. According to the survey, there are 250 local Indian lighting enterprises, the market is relatively concentrated, and 80% of orders are concentrated in 30 manufacturers

Indian enterprises are a bit like Midea and TCL entering the lighting mode, transforming from traditional light sources to LED, or surrounding enterprises, dominated by traditional consortia, which are hybrid enterprises and giants in communication, automobile, real estate and other industries

between 2012 and 2014, the Chinese government spent 800 million yuan on the market to promote efficient lighting products, which made LEDs illuminate thousands of households and cultivated a number of leading lighting enterprises

nowadays, the Indian market situation and the government's attitude seem to be the epitome of China in the past, which makes many enterprises see a rare opportunity to stand out in a millennium

however, to seize market share, especially in a country with relatively backward economy and large cultural differences like India, it is necessary to have a pattern of fearing losses and strong financial resources that can afford to suffer losses in the early stage. Therefore, although the blueprint is infinitely beautiful, we should also measure our own situation and should not blindly follow and invest

the scene of the Indian lighting market can be expressed through four echelons:

the first echelon

features: participate in eesl bidding and make the retail market with its own brand

Technology: some have their own R & D ability and require chip manufacturers to support

requirements: low price requirements, some will outsource OEM, Requirements for direct supply/billing period

region: concentrated in northern Delhi region

Share: 60% of the total market

Prospect: the profit of bidding projects is less than 2%, there are few new players, and more customers turn to the retail market with higher profit

second tier

characteristics: private brands, no bidding products, differentiated products as retail market

Technology: strong R & D strength, Need to be supported by the overall driving scheme

requirements: price sensitive, through agency services, lack of procurement channels

region: concentrated in Delhi/Mumbai, a small amount in the South and East

Share: accounting for 20% of the total market

Prospect: such customers have high profits and the number of enterprises is increasing

the third echelon

characteristics: small brands, most isolated/high-power products, Retail market

Technology: its own R & D strength is weak, and it needs to be supported by a complete scheme

requirements: the price is opaque, and through agency services, it needs to purchase the whole BOM

area: concentrated in Delhi/Mumbai, and distributed in a small amount in other areas

Share: accounting for 15% of the total market

Prospect: such customers have high loyalty and are not easy to switch

the fourth tier

features: unlicensed products, Small order/retail market

Technology: no R & D strength, purchase finished product driver board,

only assembly: low price sensitivity, local retailers support

region: emerging all over the country, Mumbai and the Middle East are in the majority

Share: market share 5%

Prospect: small workshop companies, new companies appear constantly

enterprise link

Cheng Hongbao, CEO of meixinsheng technology company

meixinsheng, As a pioneer of China's entry into the Indian LED market, meixinsheng technology company can provide authoritative reference for readers. Since June 2014, an office has been established in New Delhi, India to provide technical services to local customers in India. The business in India has developed rapidly and has established a perfect product promotion, technical support and service, agent sales system

in this exhibition, according to the needs of Indian customers, meixinsheng technology focused on the high PF non isolated mt784x for the bulb lamp and fluorescent lamp market and the high PF isolated mt7932x for the street lamp and downlight market. The intelligent lighting solution has also been warmly welcomed by Indian lighting companies. During the exhibition, technical training will be provided to eesl team at their invitation

Chen Zhenyi, manager of foreign business department of Guangzhou Hongli optoelectronics Co., Ltd.

"high cost performance" is the demand point of Indian customers

at this India exhibition, Hongli Zhihui's lighting devices are still the main focus. According to Chen Zhenyi, manager of foreign business department of Guangzhou Hongli optoelectronics Co., Ltd., the intensive work in the Indian market in recent years, whether it is product brand or market share, is being recognized and trusted by more and more Indian customers

sanjaj Rajput, sales manager of Ventus Technology (P) Ltd

this year increased by 40% year-on-year. Chinese manufacturers gave support

as the agent of Indian components, the agent brands include meixinsheng technology, Weidi industry and other brands. This year's sales increased by 40% year-on-year, of which meixinsheng is the best selling brand. Thanks to the long-term development space of the Indian market, the lighting scale with high growth rate has also made a great contribution to the development of the company

the cooperation with Chinese companies is very harmonious, and Chinese enterprises provide a series of technical support for production and sales. In the future, we will focus on the sales of street lamps and downlights and look for more high-quality Chinese manufacturers

suktit Bharati, vice president of Starlite components limited

welcome Chinese enterprises to cooperate in India

Starlite is one of the best local manufacturers in India. It has several production bases to produce and sell bulb, commercial license and driving light source. He supports Chinese enterprises to enter the Indian market together. On the one hand, he can share technology with each other and learn and make progress for his own company. In addition, the two sides have a close cooperation with Mingjing Semiconductor Co., Ltd