analysis of the russia market trend

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 the highly competitive money but to make money under the circumstances, the development of emerging markets become vendors set an important step in the expansion strategy of chess.

Russia's total area of seventeen million square kilometers, is the world's vastest country; three million population of 140 million, ranking ninth in the world; GDP ranked eighth in the world. It seems the market is huge lighting products. According to led street light supplier analyst estimated savings in super, 2014 Russian general lighting market share of close to 7.8 billion dollars, while the LED product applications do not lose the world's most advanced countries, 32% of the high market penetration, and the forecast in 2016 will reach 44 % market penetration. Regardless of the growth rate of the overall lighting, and LED penetration, etc., are the niche market of Russia the most promising area.



In addition, the Russian market is different from other emerging market countries. The degree of dispersion in the market, Russia has better performance, in accordance with the actual visit and verification LEDinside Russian outdoor lighting is more than 60% percent is in the hands of a particular manufacturer. Compared to other emerging markets, such as Southeast Asia, in addition to international brands such as Philips and outside the Panasonic, the largest local brands also have specific areas of application of up to 30% market share. Russia's unique market characteristics, so that when analysts observe this market, we must apply more flexible Model, and add more variables, the objective has been achieved and the high reliability of market information.

According LEDinisde analysts observe, the key elements of the entire LED lighting market in Russia a lot, made three of the most representative in this project:

I. chain highly dependent on imports

LED lighting products, supply chain, regardless of the LED package, power-driven, or cooling modules, there are 99%% of all imported from abroad, while the entire light 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, Greater China manufacturers have the technology or the United States and Europe, but also 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 comes from the depreciation of European and led street lighting fixture, as well as sharp decline in oil prices brought about by the effects. However, in this market is highly dependent on imports, will lead to increased cost of imports, so that Russia sold to local school high cost of lighting problems. For this reason, LEDinside analysts believe that Russia expects local businesses support local supply chain motivation, and holds technical expertise of foreign manufacturers, just to take advantage of this opportunity to establish a strategic alliance to grasp.

III. Career development relies heavily on "partnership"

Your face is the Russian people, proud and tough fighting nation. Forget those "looking for customers," "trial production samples," "Early import" business model; the Russians seriously is not your product, not your price, they pay attention to is your "partnership"! How good your relationship with the government? Your relationship with the financial institutions more good? 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 you are recognized Russian partners, and never easy to single, but firmly establish a strong partnership.

To know the Russian lighting market conditions, the details can click to read: The Russian market is taking off