Russia's current situation and development trend of LED lighting market analysis

Russia's current situation and development trend of LED lighting market is how?

Overall, Russia is now the LED lighting market with more than eight years ago has been very different. I entered the industry in 2006, has now been eight years. In my opinion this has changed the nature of the middle, the demand pattern of the LED market has been formed, each stage of the popular lighting products are not the same. For example, between 2006-2010, the number of the most popular office lighting products Troffer, which is a recessed ceiling light, while the largest number of companies in this area, most of them have some electronics industry background, to provide circuit technology to solve program.

After 2010, Russia lighting solutions, led mainly by manufacturers of advanced lighting, such as BL-TRADEandASTZ, providing application lighting technology, some of the traditional lighting manufacturers original production of high-pressure sodium, metal halide, fluorescent and other products during the period, are began to transition the production of LED lighting products.

Recently, however, the most popular products for street lighting, industrial, construction and retail environment lighting, instead of the previous smash hit troffers, because this lighting manufacturers is almost no profit.

Those large companies have entered the LED industry, but no technical background in electrical engineering, lighting trying to develop other new products, including the later of the more popular types of products for industrial lighting (Industrial Lighting), street (Street Lighting) municipal lighting (Municipal Lighting) , architectural lighting (Architectural Lighting), commercial lighting (Commercial Lighting) and so on.

On today's lighting show that you can still see Troffer, because it is now also the market, but for many companies really make money in other products, such as building, industrial and custom lighting. Because now rely Troffer difficult or almost impossible to profit profit profit of only those able to reduce the production cost of lighting giant.

In China or Taiwan, component distributors task is to find better suppliers, better products or lower prices. And their customers usually have their own career development team, but the Rainbow is more like a professional consultant, to optimize customer solutions. Rainbow So what initially appeared as the lighting in the Russian market? Pure component dealers or by a team of engineers of the technical consulting company?

These two very different business models. One is the traditional distribution model, sales staff enough. Some of our relatively simple components, such as the package is the package, optics is optical, it is very easy to sell. However, other products such as semi-finished modules can be used both as LED lighting, LED display and can do, this is more complicated. Because the distribution of components is B2B, we are faced with customers are not consumers but companies, in order to be able to sell to customers well requires a certain expertise or technical background. So our company has two sales staff, one is the traditional salesman, technical support and sales of another charge of the project, such as street lighting, architectural lighting. These modes are not in conflict, but can be well combined.

In fact the market is not much information we get. Overall, the magnitude of the traditional lighting market expansion will slow down compared to 2013, and LED lighting market is stable compared. Local traditional lighting manufacturers get much government investment, but this year the overall economic situation in Russia is not great optimism. Oil prices have fallen, the ruble continued to depreciate, whether Rainbow, Lighting Technologies, Varton, and now are in a difficult period. We can do is to sell the right to market products and solutions.

Many Russian LED manufacturers will adopt a more low-cost strategy, the price of the LED package almost 15% decline in aluminum prices getting lower and lower. Currently Troffer prices to the lowest point, the market share is still not be underestimated, for many manufacturers, this will be one of the preferred solution, after all, are the main factors affecting the market price competitiveness. Rainbow also made some adjustments to adapt to market changes, such as the recently introduced a low-cost high-quality street plan, the price is generally at $ 55 (40W) to $ 140 (150W) between, up to $ 285 (300W).

Russian lighting market purchases on the main battleground between competing vendors, manufacturers demand for low-cost and high-quality products, so companies must constantly look for cheaper options, part of the LED light source package prices fell an average of 12-15% per year. But the expansion of the overall market prices, I think this might be you think the reason the LED market is relatively stable. We understand that part of the Russian dealers and manufacturers, they began to shift from other regions such as China component manufacturer or agent directly imported components or modules, some manufacturers began to seek cooperation and joint ventures. Indeed it is difficult to compete with cheap Chinese products, and this situation Siberian Branch of the impact for us especially, because the market is flooded with Chinese components which generally smaller vendors will choose Chinese products. But Rainbow In addition to providing products, in terms of customers but also provide more value-added services such as technical support, financial support, multiple inventory and improve the service. The Chinese import components and products, logistics cycle is very long, and this is the reason customers choose the Rainbow. \ For us, the key is not to provide cheaper solutions, but a competitive program. Our focus is different at each stage, four years ago, lights, architectural lighting three years ago, two years ago, the consumer lighting.

Russia and other markets, where different natural environment, the market structure is not the same, some of the programs only Russia has the ability to provide local companies. Overall, the competition is fierce, only large companies can survive, but only to expand the scale of SMEs to gain a foothold future.