Russian market trend analysis

In recent years, LED lighting market development in emerging countries is booming, in the mature markets of Europe and Japan are the traditional international brands occupy the seats; the highly competitive countries such as Chinese get money but not to earn money in the circumstances, the development of emerging markets has become an important move for manufacturers to expand strategy.

Russia has a total area of seventeen million square kilometers, is the world's largest country in the world; population of one hundred and forty-three million people, ranking the world's top ninth; GDP world ranking of eighth. It seems to be a huge market for lighting products. According to LEDinside analyst in reservoir estimation, the overall share of the Russian lighting market in 2014 to nearly $7 billion 800 million, while the LED application does not lose the world's most advanced countries, high market penetration of 32%, and estimated at 2016 will reach 44% market penetration. Regardless of the growth rate of the overall lighting, as well as the penetration rate of LED and so on, Russia is the most potential in the niche market.

In addition, the Russian market is different from other emerging market countries. In terms of market dispersion, Russia has better performance, in accordance with the actual visit and verification of LEDinside, more than 60% of Russia's outdoor lamps are mastered in the hands of a particular vendor. Compared to other emerging markets, such as Southeast Asia, in addition to major international brands such as Philips and Panasonic, the largest local brands also have a maximum of 30% market share in specific areas of application. Russia's unique market characteristics, so that analysts in the observation of the market, we must apply more flexible Model, and add more variables, has achieved objective and high reliability of market information.

According to LEDinside analyst's observation, the key elements of the Russian LED lighting market a lot, in which the three most representative projects:

I. industry chain is highly dependent on imports

LED lighting products in the supply chain, whether it is the LED package, power driven, or thermal module,% 99% are imported from abroad, and the whole lamp are also part of more than 50% from other countries, in such a huge market demand, but the lack of a complete supply chain under the condition. China or the United States and Europe has technology vendors, should have a good grasp of the market, and further business, has made the relationship between import partners.

II. Russia's current economic situation

When the news is broadcast yen depreciation of more than 17% of the time, the Russian Ruble has depreciated by more than 55% this year. The reason for the devaluation comes from Europe and the United States sanctions against Ukraine, as well as the effect of a sharp decline in oil prices. However, in this highly dependent on imports of the market, will lead to increased import costs, so that Russia's local sales of lamps and lanterns out of high school costs. It is for this reason, LEDinside analysts believe that Russia local enterprises are expected to support the local supply chain motivation, and have professional technology to foreign manufacturers, can take advantage of this opportunity to establish a strategic alliance.

III. career development is highly dependent on partnership"

You are facing the Russians, arrogant and tough fighting nation. Forget about the business model of "looking for customers", "trial production samples" and "early import". The Russians don't care about your product, not your price! How is your relationship with the government? How good are you with the financial unit? Do you have a connection with the national sovereign fund? This is the key to attracting Russians to do business with you. The most important thing is that when the Russians believe that you are a partner, will not easily turn single, but firmly establish a deep relationship.

To know the Russian lighting market, the details can be read: the Russian market is taking off

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