In recent years, LED lighting market in the development of emerging countries is very buoyant in mature markets such as Europe, America and Japan, the traditional international brands occupy seats; China and other countries see money but highly competitive earn money under the circumstances, the development of emerging markets become vendors set expansion strategy an important step in chess.
Russia's total area seventeen million square kilometers, is the world's vastest country; three million population 140 million, ranking ninth in the world; GDP world ranking eighth. It seems huge market of lighting products. According to LEDinside analyst Roger Chu estimated that in 2014 the overall share of the Russian lighting market is nearly 7.8 billion dollars, while LED product applications do not lose the world's most advanced countries, 32% of the high market penetration, and estimated in 2016 will reach 44 % market penetration. Regardless of the growth rate of the overall lighting, and LED penetration and so on, Russia is a niche market in most regions potential.
In addition, the Russian market is different from other emerging market countries. Dispersion in the market, Russia has better performance, according to LEDinside actual visit and verification, Russian outdoor lighting for more than 60% is in the hands of a particular vendor. Compared to other emerging markets, such as Southeast Asia, in addition to international brands such as Philips and other than Panasonic, the largest local brands also have specific areas of application of up to 30% market share. Russia's unique market characteristics, so when analysts observe this market, you must apply more flexible Model, and adding more variables, the objective has been achieved and the high reliability of market information.
According LEDinisde analysts observe, LED lighting throughout the key elements of the Russian market quite a lot, this made three of the most representative projects:
I. chain highly dependent on imports
LED lighting products supply chain, whether it is LED package, power-driven, or cooling modules, there are 99%% of all imported from abroad, while the whole lamp section also has more than 50% or more from other countries, in such a large market demand, but the lack of a complete supply chain under the condition, or the United States and Europe, Greater China manufacturers have the technology, but should take advantage of this market, and in-depth business, has made the relationship between import partners.
II. Russia's current economic situation
When the news are broadcast by more than 17 percent depreciation of the yen, the Russian ruble has depreciated more than 55% this year. The reason for the devaluation of the Ukrainian events from the US and European sanctions, as well as sharp decline in oil prices brought about by the effects. However, in this market is highly dependent on imports, the cost of imports will lead to increased sales of lamps for the Russian local school high cost problems. For this reason, LEDinside analysts believe that Russia expected to foster local businesses motive local supply chain, and holds technical expertise of foreign companies, just to take advantage of this opportunity to establish a strategic alliance to grasp.
III. Career development highly dependent on "partnership"
Your face is the Russian people, proud and tough fighting nation. Forget those "looking for customers," "trial production samples," "Early to import" business model; the Russians pay attention to is not your product, not your price, they pay attention to is your "partnership"! How good your relationship with the government? Your relationship with financial institutions properly? You and sovereign wealth funds to support the company have a hook? This is the key to attracting Russians do business with you. The most important thing is that when people see you as the Russian partner, and never easy to single, but firmly build strong partnerships.