LEDinside stored in Ultra: Russian LED lighting market is taking off

ILDP LEDinside launched in October 2014 the first phase of the project, is expected from December 8, 2014 to 19, the industry leader in career development project for a period of 12 days (Industry Leadership Delegation Program, ILDP LED), to help enterprises to accelerate the development and expansion of the Russian market opportunities. The LEDinside editor interviewed trendforce LEDinside's green energy division research associate Mr. Chu Yu chao.

Q: why does LEDinside want to carry out the ILDP project?

Storage: LEDinside study in super long track global LED lighting industry development, we found that with the LED industry technology matures, the marginal cost of innovation is more and more high, and the marginal revenue has decreased rapidly, the main industry driving force from technological innovation to market development.

In this context, LEDinside hopes ILDP business plan to help LED companies across the Taiwan Strait through the development of new markets to achieve the goal of growth and development. Different regional markets in the world, according to the level of development and the industrial environment is different in different stages of development, through the comparison of various stages of development of the market, we are mainly to assist the development of those who have experienced a rapid development period, the stage of the outbreak of the market, help China enterprise in time, on the market. Do the right thing, to achieve a multiplier effect.

Q: why choose the Russian market?

Storage: LEDinside selection in super Russian market there are three reasons: first, the Russian lighting market has high dependence on imported products; second, LED products in the Russian market penetration is still low; third, the source of strong demand for LED.

Russia has a population of 142 million, 2013 GDP reached 2 trillion dollars, a huge domestic market. However, although the total economy is not small, but is very dependent on the energy industry, electronics and lighting industries are not developed, so the development of related industries are very low, mainly rely on imports, this also makes the main manufacturers in Greater China more opportunities.

In addition, LED lighting penetration in the Russian market is still at a very low level. Compared to Japan, Europe and the United States to fully develop the market, the Russian market is quite huge potential for the outbreak. Compared to China and Southeast Asia and other emerging markets, the Russian lighting market competition is much smaller, relatively better profit margins. Finally, most of the products are imported from Russia China by general traders, they are not the special lighting company, are lack of in-depth understanding of the market and products, so the local manufacturers hope very much to find directly the supply capacity of the Chinese suppliers.

Based on the above three reasons, we find that Russia is a market with great potential and advantages in the Greater China region.

Q: what did LEDinside do to open up the Russian market?

Stored in the ultra: in order to understand the Russian market, to find more valuable potential customers, LEDinside quite structured from three levels into ILDP:

First, pre list and resource preparation. LEDinside selected 20 key manufacturers from the thousands of Russian lighting manufacturers list, and have sent a large number of resources analysts in October and November, went to Russia for a month and a half of the field visits, understand every key manufacturers operating conditions, development plans and intentions. The aim is to gather information on the Russian lighting market, penetrate the supply chain, and achieve key market dynamics and limitations.

Second, vendor selection and demand analysis. The second stage, companies and institutions we selected from these manufacturers strong willingness to cooperate, and has considerable potential for development as our strategic partners, and find out the hand orders, there is potential for development, and the company is willing to cooperate with both vendors in-depth conversation.

Third, the actual visit and cooperation negotiations. The last stage is LEDinside, the actual leading manufacturers to Russia, let the development of return to nature, and potential partners to sit down face to face negotiations may develop in the future, and to think and solve market entry barriers.

The three levels of the above work, LEDinside accumulated years of experience, the most effective way to sort out, can actually help in project company business development, and roots in the local market, and achieve the development scheme of cost benefit.

Q: what can LEDinside do to visit the business?

Storage in Ultra: in talking about what to do for the enterprise before, we should first explore the enterprise in the Russian market will encounter challenges in the Russian lighting market, there are three major challenges: first, single vendor development costs are too high; second, the lack of career development partners; third, it is difficult to mining the key customers.

First of all, a single Chinese enterprise to develop the Russian market, will face the high cost of development, lack of market infrastructure and market information dilemma, as can be imagined is the enterprise must pay the cost of learning is very high.

Secondly, Russia is a highly closed country, if the short term can not find a suitable partner, will make the development of the cause of bear great risks, such as unclear regulations, clear the relationship, open government and business links, funding problems and so on, are needed in the partner assistance.

Finally, because the Russian market