In 2018, China’s economy has changed from a high-speed growth stage to a high-quality development stage. With the continuous development of the “Belt and Road” and the “going out” strategy, China is the most important production and export base for the global LED industry. The dividends enjoyed by exports are beginning to appear and gradually released, which brings huge opportunities for domestic LED companies to explore the international market.
Looking at the global LED market in recent years, in addition to the rising demand in the European and American markets, South American countries such as Brazil and Chile, as well as emerging countries such as India and Southeast Asia, are gaining momentum. In the current fierce competition in the domestic market, Chinese LED companies continue to “go out” to seize market opportunities.
Indian government pushes LED industry, lighting market continues to expand
At present, the LED lighting market in India is still in its infancy, and international manufacturers are optimistic about India. Both Philips Lighting and Osram are setting up factories in India as a production base in the global market. According to the LEDinside report, the LED lighting market in India was US$1.14 billion in 2016, with an annual growth rate of 47.1%, and is expected to climb to US$1.715 billion in 2020.
Indian Prime Minister Modi also proposed the “Smart City Plan” in 2016. It is expected to build 30 million street lamps in India within two years, including the replacement of new and new street lamps. LED factory Yiguang recently successfully won the street lamp in southern India and will ship 10 million street lamps in the next year.
Russian LED display market is amazing
As the North American and European markets become saturated and market access increases, more domestic LED display exporters have turned their eyes to emerging markets such as Russia, Southeast Asia, Africa and Latin America in recent years. Good growth momentum, of which Russia is the most eye-catching in emerging markets.
Russia’s economic recovery has developed steadily in recent years, Sino-Russian trade has continued to heat up, and trade between the two countries has been frequent. Russia has become China’s Top 10 trading partner. The data shows that in the first three quarters of 2017, the trade volume between Russia and China was US$61.376 billion. China’s exports to Russia were 31.378 billion U.S. dollars, and imports from Russia were 29.998 billion U.S. dollars.
Russian LED display demand has also increased significantly, has entered the ranks of the top 5 importing countries. From 2010 to 2014, demand increased from 20.31M$ to 144.50M$, an increase of more than 6 times, with an average annual growth rate of 63.32%. It is expected that the demand for LED display market in Russia will exceed 310M$ in 2017. Demand for LED displays is huge in many areas such as commercial advertising, sports events, and military security.
South Korea’s LED civilian market is poised for growth
Since 2017, the Korean Land and Real Estate Company (LH) has been planning to install LED lighting in all LH apartments, and large construction companies have begun to expand LED lighting. In the LED lighting industry, the number of LED products supplied to private apartments is increasing. According to industry sources, the South Korean government will introduce a standardization standard for LEDs in the near future to establish LED lighting fixture standards for large construction companies such as LH. According to a person in the national LED industry, “LH is providing LED lighting for apartments. As an important part, LED lighting has also attracted the interest of private construction companies and residents.”
The Brazilian lighting market is an important stronghold
Brazil ranks second in China’s LED replacement light source products export destination, second only to the United States, fluorescent light sources and other light source products are also among the best in export destination countries. It is consistent with the fact that in actual market applications, light sources are also the mainstay, and the application of integrated lamps is relatively small. In the entire Brazilian market, home decoration lighting accounts for about 25% of the market share, commercial lighting accounts for 20%, industrial lighting accounts for 15%, outdoor lighting accounts for 13%, and architectural lighting accounts for 12%; and in the largest proportion of home decoration lighting The category mainly consists of about 10% of wall lamps, about 9% of chandeliers, about 9% of ceiling lamps, about 7% of desk lamps and about 5% of downlights.
Cross-border trade is not an easy task. It requires not only high-quality products, but also a strategic layout that is far-sighted. In order to occupy a place in the overseas market, China’s LED display manufacturers must ensure product quality, combine local culture and customs, and provide comprehensive layout in terms of products, sales and services, and truly achieve localization of overseas markets. Further development in the increasingly competitive overseas market has created new glory in China’s LED display companies in the international market.