An Analysis of the Market Structure of Energy Saving Lighting Products in Russia

Lighting is the world's second largest consumer area, accounting for about 19% of total electricity consumption. Energy-saving lamps are the mainstream of the global lighting industry's future development.

I. Overall situation of global energy-saving lighting products 1. Industry structure. According to statistics, the global lighting market turnover in 2010 was 14 billion US dollars. From the perspective of light sources, primary products such as incandescent lamps and fluorescent lamps are still the main products. However, due to its small size, low energy consumption, and long service life, LED light sources have become the “new darling” of the lighting industry and their market share has soared. In 2011, sales of US$7 billion accounted for half of the lighting market. It is predicted that after 4 years, the global sales market will exceed 18.2 billion U.S. dollars, and by 2020 it may touch as high as 65 billion U.S. dollars, which will include 70% of the market share. By then, LED lighting products will fully enter the traditional lighting field and become the world's major lighting method. At present, the LED industry has formed a competitive pattern dominated by the three major regions of the United States, Asia, and Europe.

2, legislation to promote. In recent years, countries such as the European Union, Russia, and the United States have introduced routes and plans to phase out traditional high-energy products such as incandescent lamps and popularize and promote energy-saving lamps. From September 1, 2009, the EU’s first phase ban, marked by the elimination of incandescent light bulbs, came into effect. By September 2012, incandescent lamps will gradually exit the market. Only this one can save the annual power generation of 52 power stations. On January 1, 2012, the new energy conservation law of the United States came into force, which stipulated that the energy saving rate of the lighting products sold in the market should not be less than 25%, so that the incandescent lamps would walk on their shelves. According to calculations, the electricity savings are sufficient to build 30 new power stations.

Second, the Russian lighting industry market overview (A) Russian energy-saving lighting product development situation 1, energy-saving product classification. Russia will be divided into the following energy-saving lighting products: First, the improvement of incandescent lamps (two points A and B) or halogen lamp. Products can save 20-45%, life 2-3 years, the price of 2.5-6.5 US dollars / only; the second is a compact fluorescent lamp. The product saves 65-80% of electricity, life span is 6-20 years, and the price is 6.5-26 US dollars/only; the third is LED or LED lamp. Can save 80-90%, the price in the 13-52 US dollars / only.

2. Institutional arrangements. The Russian government formulated the "Energy Strategy by 2030" in 2009, which stipulates that the sale of incandescent bulbs of 100 watts or more is banned on January 1, 2011, and the sale of incandescent bulbs of 75 watts or more in 2013 will be prohibited. In 2014, 25 watts will be banned. The above incandescent lamp will be taken from the shelf. Sentenced the "criminal period" of incandescent lamps.

3, market conditions. Statistics show that the consumption of incandescent lamps in the Russian market has remained at a scale of 800 million/year in previous years. 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.

(II) Several factors affecting development 1. The Russian fluorescent lamp market has a large quantity, but the construction of recycling facilities is backward. In order to solve the environmental hazards of heavy metals such as lead and mercury in the waste lamp glass, it is necessary to establish a corresponding processing center according to the production capacity to efficiently recover the mercury, glass and metal in the waste lamp. Due to lack of funds, the growth of its product sales is much greater than the growth rate of recycling. In the long run, the issue of environmental protection will become a “bottleneck” to curb the development of fluorescent lighting products.

2. Profit-making has become a big market. Major manufacturers competed for lucrative professional lighting market, but they did not pay attention to the general energy-saving lighting market. At the same time, the mass market is not ready to transition to energy-saving technologies. The price of LED lighting products in Russia is too high, and the standard LED lamps are 50 times more expensive than ordinary incandescent lamps, 10-15 times more expensive than fluorescent lamps, and they are difficult to popularize in the home market. Dealers will focus more on public procurement projects for energy-efficient lighting equipment. The supply is mainly for industrial users such as railways, chemical industry, power oil, warehousing, and public buildings. For example, Russia-Svetlana Optoelectronics has provided more than 100 energy-saving lighting equipment projects for the Russian Railways. Philips' product users are large companies such as Lukoil, audio-visual shops, department stores, and steel companies.

3. Russian consumers generally lack the internal motivation to purchase energy-saving products. The price of electricity in all parts of Russia is much cheaper than the EU, and most of the energy-saving products can show economic performance after several years. In the choice of purchase intentions, consumers are more inclined to low-cost traditional lighting products.

Third, orderly expansion of my market share of energy-saving products in Russia (A) the domestic energy-saving lighting industry overview 1, the initial formation of the industrial chain. But the lack of core technology. In recent years, China's LED industry has developed rapidly, forming a relatively complete LED industry chain, with more than 3,000 production companies, of which 70% are concentrated in the downstream industries, and the level of technology and product quality are uneven. The LED industry in Taiwan has risen rapidly in recent years, and its chip and packaging business has a great influence in the world.

2. The industrial structure is poor and the layout is not reasonable. Domestic LED epitaxial materials and chips are mainly medium and low-grade, with small scale and low concentration. SME product quality is not stable. The export of energy-saving lamp manufacturing companies is uneven, especially the quality of SME products is worrying. Although the industrial clusters took shape, the brand-name products were cut off. The industrial structure is pyramidal and the bottom is large and small.

(b) Russia's response to my export products 1. The quantity wins and the quality is worrying. Russia's OPTOGAN President Lev said that currently China's manufacturing of fluorescent and LED energy-saving lamp products in Russia has accounted for 60% of the market share. The biggest problem with the product is poor quality and does not meet the relevant technical standards and environmental protection requirements. The service life is low and it is easy to cause harm to the human body.

2. Without market cultivation, credibility will eventually be lost. Some of China's lesser-known companies do not have sales performance and visibility, but are keen to lobby local governments and participate in government procurement in countries and regions, causing Chinese products entering the Russian market to be “a fisheye”. Government procurement is a major feature of Russia’s economic composition. Proper use of business opportunities will do more to improve the credibility of our products.

In terms of strength, we are still relatively sound in the energy-saving lamp industry chain. We have superior resources and strong competitiveness. However, we have not fully utilized these resources to show these competitive advantages. The flooded export markets are some energy-saving lamp products that are less environmentally friendly, less energy-efficient, and have lower luminous efficacy.

In short, Russia's energy-saving lighting products have a huge market capacity and a broad development prospect. My export company not only needs to do a good job of branding, but also to create good internal strength, export good quality products that are marketable, and restore the adverse effects caused by the Russian consumers. At the same time, the relevant departments should strengthen the supervision of the qualifications and product quality of export enterprises, pay close attention to industrial development, and guide the export of enterprises. Avoid repeated mistakes in the anti-dumping sanctions that were encountered in Europe and maintain the sound development of exports.