In recent years, the LED lighting market has developed very vigorously in emerging countries. In mature markets such as Europe, the United States and Japan, traditional international brands have taken over. In highly competitive countries such as China, where money can be seen but not made, developing emerging markets has become a An important step for manufacturers to formulate expansion strategies.
Russia has a total area of 17 million square kilometers, making it the world's largest country. It has a population of 143 million, ranking ninth in the world; and its GDP ranks eighth in the world. It seems that there is a huge market for lighting products. The overall share of the Russian lighting market in 2014 was close to US$7.8 billion, and the application of LED products is not inferior to that of the world's most advanced countries, with a high market penetration rate of 32%, and it is expected to reach a market penetration rate of 44% in 2016. Regardless of the overall lighting growth rate, LED penetration, etc., Russia is the most promising region in the niche market.
In addition, the Russian market is different from other emerging market countries. In terms of market dispersion, Russia performs better. According to actual visits and verification by LEDinside, more than 60% of Russian outdoor lighting is in the hands of specific manufacturers. Compared with other emerging markets, such as Southeast Asia, in addition to international brands such as Philips and Panasonic, the largest local brands have at most 30% market share in specific field applications. The unique market characteristics of Russia require analysts to flexibly apply more models and add more variables when observing this market to obtain objective and highly reliable market information.
According to the observations of LEDinisde analysts, there are many key factors in the entire Russian LED lighting market. Here are the three most representative projects:
I. The industrial chain is highly dependent on imports
In the supply chain of LED lighting products, whether it is LED packages, power drives, or heat dissipation modules, 99% are imported from abroad, and more than 50% of the entire lamp part comes from other countries. In such a huge market Given the market demand but the lack of a complete supply chain, manufacturers with technology in Greater China or European and American countries should better grasp this market, conduct in-depth operations, and obtain import partner relationships.
II. Russia's current economic situation
While the news is reporting that the Japanese yen has depreciated by more than 17%, the Russian ruble has depreciated by more than 55% this year. The reason for the depreciation comes from the effects of European and American sanctions on the Ukraine incident and the sharp decline in oil prices. However, in this market that is highly dependent on imports, it will lead to an increase in import costs, making the sales cost of local lamps in Russia high. It is for this reason that LEDinside analysts believe that local Russian companies are motivated to support the local supply chain, and foreign manufacturers with technical expertise can take advantage of this opportunity to establish strategic alliances.
III. Career development highly relies on "partnership"
You are facing the Russians, a proud and tenacious fighting nation. Forget about those business models of "finding customers", "trial production of samples" and "early introduction"; what the Russians value is not your product or your price, they value your "partnership"! How good is your relationship with the government? How good is your relationship with financial institutions? Are you linked to companies supported by national sovereign funds? This is the key to attracting Russians to do business with you. The most important thing is that when the Russians identify you as a partner, they will never transfer orders easily, but will firmly establish a deep cooperative relationship.
It seems that although the Russian market is large, efforts must be made to deepen cooperation. The depreciation of the ruble, the Ukrainian issue, European and American economic sanctions, and transportation issues all have to be resolved.
