China's LED companies enter the Japanese LED lighting market variable

[Source: "Engineering LED- lighting market," the November issue of reporter / Xiongyu Heng]

Since the 3.11 earthquake, Japan’s domestic awareness of energy conservation has risen, setting off a wave of LED lighting promotion. Instantly, Japan has become the fastest growing market for LED lighting applications worldwide, and has received much attention from the industry.

Due to the blocked exports to Europe and the United States, China's LED companies began to pay attention to the Japanese market. However, the good times are not long, and this high-speed growth has not lasted for too long. After two years, the Japanese LED lighting market is now saturated, and the growth momentum is obviously insufficient.

Today, with the escalation of the Diaoyu Islands dispute, China and Japan are experiencing a crisis, and LED is no exception. "Before exporting to Japan, the customs can be inspected in 2-3 days, but now it takes three weeks." A domestic LED lighting manufacturer told the "Lighting Market" reporter that for LED lighting manufacturers, the pressure for three weeks, The corporate capital chain has put forward higher requirements.

"The Diaoyu Islands dispute is just a trigger for domestic LED companies to bearish on the Japanese market. The deeper reason is that after the first two years of explosive growth, the Japanese LED lighting market has become saturated and the growth rate has slowed down." Nie Pengxiang, general manager of the incentive test CEO .

The market is becoming saturated, the export is in crisis, and with the challenges of Japanese local companies, the Japanese market for LED companies in China is expanding. The Japanese market is no longer attractive, and many domestic LED companies that have entered the Japanese market have already retired.

Rapid growth

In 2008, LED lighting accounted for only 0.8% of the Japanese lighting market. However, since the 3.11 earthquake, Japanese LED lighting has been rapidly popularized, making it the country with the highest penetration rate of LED lighting in the world.

According to GFK Japan research data, LED lighting sales have more than doubled in the two months after the earthquake in Japan; LED lighting sales accounted for 37.2% in early May, which is almost 43% of incandescent lamps; May 23-29, LED Lighting sales surged 2.9 times, accounting for 42.3% of total bulb sales, surpassing 39% of incandescent market share for the first time.

It is understood that the products with higher output value in the Japanese LED lighting market are LED bulbs, ceiling lamps and lamps. Among them, the sales volume of LED bulbs increased the most, 2-3 times higher than before the earthquake, accounting for more than incandescent lamps for the first time. In Japanese supermarkets and convenience stores, LED lighting products are everywhere. According to the introduction of the Japanese Institute of Lighting Society, Toshio Kazuo, "As of the end of 2011, Japanese LED ceiling lamps have accounted for 50% of the total sales of the entire ceiling lamp market."

According to relevant statistics, the sales volume of LED lighting products in the Japanese market has been raised to 31 million in 2011. This figure is expected to increase by nearly 40% compared with the beginning of 2011. The new LED sales area has become an important force driving sales growth.

Not good for a long time

Unfortunately, the rapid growth of the Japanese LED lighting market has not lasted for too long. Fuji Economy predicts that the Japanese LED lighting market, which expanded to 37.7 billion yen in 2012, will shrink to 36.3 billion yen in 2015, and will shrink to 30.1 billion yen by 2020, almost predicted by LED lighting companies before 2011. The data is the opposite.

Toshiba’s lighting technology executive Sato Gyoshi said, “This year, sales of LED bulb products are around 80% in 2011. The original forecast will peak in 2013-2014. It seems that 2011 is already the peak. "".

The facts show that after the first two years of explosive growth, the current Japanese lighting replacement market has been relatively saturated, while the growth rate of new markets is relatively stable. Nie Pengxiang said that the Japanese government's LED lighting promotion is very strong, especially the bulbs; due to the faster replacement speed, the replacement process has ended prematurely in just two years.

At the same time, LED products have a long life span, which reduces the frequency of replacement. Experts predict that it will take at least five years for Japanese LED lighting to be replaced next time. "New buildings or venues will use LED lighting, but the impact on the growth of the LED lighting market is limited." Nie Pengxiang said that the growth rate of the Japanese LED lighting market in the next few years is not optimistic.

Japanese enterprise shock

The rapid growth of the Japanese LED lighting market has attracted many well-known Japanese companies to enter the LED lighting market, including Panasonic, Toshiba and Sharp. “National local companies can open the Japanese market with their brand awareness and perfect sales channels.” Nie Pengxiang said that the low-cost advantages of domestic LED companies are becoming weaker and weaker.

This year, Matsushita Electric Industrial Co., Ltd., the largest LED lighting manufacturer in Japan, decided to carry out a major group reform to merge Panasonic Lighting and Matsushita Electric Lighting into a lighting business group. After the reorganization, we will strive to achieve sales of 35 billion yen in 2012, and sales in 2015 will reach 100 billion yen. Among them, LED lighting will account for 40% of the market share in Japan.

At the same time, Toshiba is also stepping up its penetration of the Japanese LED bulb market. Toshiba’s LED business unit director Sato Koshiji mentioned that the monthly sales volume of Toshiba’s LED bulbs in 2011 has grown significantly from 2.8 million in June to 4.8 million in December, with an annual growth rate of over 300%.

Great price drop

The participation of Japanese soil companies has led to more intense competition in the Japanese LED lighting market, with the direct result of a rapid decline in product prices. "This year, the price of LED lighting products in Japan has fallen sharply, and the decline may exceed 30%." A person in charge of the company said that the rapid decline in prices led to a thinning of profits, and many companies that invested more in the day had to change the middle and low-end routes.

In 2011, Japanese manufacturer Alice Oyema increased production in the LED lighting industry in the Dalian plant to cope with the growing market demand after the earthquake. Eliminate the intermediate circulation link and use low cost as a weapon to seize 20% of the Japanese lighting market.

However, the price continued to fall sharply, leading to the outstanding performance of Alice Oyama. Its president, Oyama Kentaro, believes: "The price of light bulbs is falling too fast. We will not continue to follow." At the same time, in the fall of 2011, NEC also ended its plan to strengthen the LED lighting product line in China's foundry companies in phases.

Other companies that want to enter the Japanese lighting market have also changed their fronts. Philips, which wants to attack the Japanese lighting market in a big way, also gave up its strategy of operating bulb-type products in Japan, and said that "it is meaningless to fight in a market that is already a big road."

Threshold elevation

This year, the Ministry of Economy, Trade and Industry announced that since July 1, 2012, LED lighting products that have entered the Japanese market must pass PSE certification. This marks the rise of the threshold for LED lighting products exported to the Japanese market.

PSE product certification is not only highly demanding on product quality and production process, but also requires strict supervision of supplier factory management. According to industry insiders, even if the quality of products in China can be certified, they will often suffer from stuck in factory management. At present, there are not many Chinese lighting companies that can pass the PSE certification, which limits their exports to Japan.

Japan’s JET Lighting Division executive Watanabe Watanabe believes that “Since the earthquake in Japan last March, more and more Chinese LED lighting products have entered the Japanese market. However, after actual testing, the quality of these LED products is mostly not up to standard”. Therefore, the introduction of PSE product certification, in a sense, is more targeted at China's LED companies.

How to effectively enter the Japanese LED market? "Selecting the right partner to develop several highly competitive products for the Japanese market demand is the problem that companies that want to expand the Japanese market need to think about."

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