Analysis: The annual growth rate of LED lighting market in Russia will exceed 28%

According to data from the “Full-line LED Production Business Plan” launched by a professional marketing and analysis company, as in other parts of the world, the proportion of the Russian LED lighting market continues to grow.

In the long-term prospects, Russia's LED lighting market will have a global share of 1-5%. The growth rate of the Russian LED lighting market will reach 28-48% annually. The popularity of LED retrofitting will exceed 300 million by 2014 and will increase further, mainly due to energy efficiency and optimized power expenditure. The current potential of the lighting equipment market in Russia amounts to 560 million euros, and in order to replace Russia's entire light source, 110 billion LED lamps are required, of which more than half will be used in the commercial and consumer sectors.

Russia's LED market has three major features In fact, in recent years, there have been more and more industrial giants feel that this huge market in Russia, the industry war imminent. These industry giants include Philips and NVC. Among them, the recent Russian market has conducted meticulous analysis and believes that the Russian market currently has three major characteristics.

First, 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.

Second, profit-driven growth 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 and 10-15 times more expensive than fluorescent lamps, making it difficult to popularize in the home market. Dealers are focusing more on public procurement projects for energy-efficient lighting equipment. The supply is mainly for industrial customers 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.

Third, 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 that in the European Union. Most energy-saving products can show economic performance only after several years. In the choice of purchase intentions, consumers are more inclined to low-cost traditional lighting products.

For Russians, what is the status of China's exported LED products in their hearts?

Russia’s OPTOGAN President Lev said earlier that China’s current energy-saving lamp products, such as fluorescent and LED, have accounted for 60% of the market share in Russia. The biggest problem with the product is poor quality and does not meet relevant technical standards and environmental protection requirements. The service life is low and it is easy to cause harm to human body.

In addition, 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. This has caused Chinese products entering the Russian market to become "a fisheye."

A. Product classification Russian energy-saving lighting products are divided into the following categories: First, improved incandescent lamps (A and B are two types) or halogen lamp, the product can save 20% -45%, life expectancy 2-3 years, the price is 2.5 - 6.5 US dollars / only; 2 is a compact fluorescent lamp, the product saves 65% - 80%, life expectancy 6 - 20 years, the price is 6.5 - 26 US dollars / only; three is light-emitting diodes or LED lights, can save 80% - 90%, the price is 13-52 US dollars / only.

B. Institutional Arrangements The Russian government formulated the "Energy Strategy Outline to 2030" in 2009, which stipulates that the sale of incandescent lamps of 100 watts or more is banned on January 1, 2011, and the sale of incandescent lamps of 75 watts or more is prohibited in 2013. Incandescent lamps above 25 watts will be taken from the shelves and the "deadline" of incandescent lamps is pronounced.

C. Urban construction in Russia, typical standard apartments in the Soviet era are no longer popular, and modern, individually designed apartments and country houses built in and around the city abound. Many cities are building new stadiums, sports venues, swimming pools, hotels, hotels, Russian-style pubs and so on. The above changes have led to an ever-widening range of applications for lighting in public places, indoor lighting and road lighting. In the past, the Russian lighting market was mainly confined to international metropolises such as Moscow and St. Petersburg. Now it has been extended to Volga in the east, the Ural region, and the southern regions of Siberia, the Far East, and Russia.

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