China Lighting & Electricals Industry

An Expert's View about Lighting in China

Posted on: 30 Mar 2010

China’s lighting and electricals industry has an optimistic outlook for 2010. Despite the lingering effects of the economic slow down and existing anti-dumping restrictions, suppliers are generally looking forward to stronger demand in coming months.


For exports, many are forecasting growth of at least 10 percent. Companies expect orders to pick upsteadily as the economic recovery becomes more stable and widespread. Environmental awareness is also projected to continue rising worldwide, encouraging consumption of energy efficient technologies.


Customs statistics provide basis for the industry’s positive outlook.Although the volume of exports between January and October 2009 was down 21 percent from the same period in 2008, the number of products shipped in October grew 11 percent.


CFL shipments show the strongest promise of bouncing back quickly to pre crisis levels, as legislation banning in candescent bulbs fuel demand. In fact, export data for September and October 2009 show export volume up 13 and 14 percent, respectively.


LED lighting is considered another high-growth segment. Demand for the line is expected to increase at a fast pace as advancements in related technologies push down costs and, subsequently, prices.


The following are some of the other key trends we see in China’s lighting and electricals industry.

• The product selection will become “greener.” Across all categories, suppliers are aiming for greater energy efficiency, driven mainly by the implementation of stricter environmental standards in various markets. Many are also switching to materials and components safer for the ecology, as well as human health, to lower the carbon footprint of their models.

• The EU and the US are expected to remain major destinations of China-made lighting and electricals incoming months. Market conditions in these areas are considered favorable for the industry since both have enacted several pieces of legislation promoting the use of eco-friendly lines.

• To support product developmentand sales targets, allocations for R&D are being raised. Most makers are also enhancing their capability by hiring additional specialists or engaging in partnerships with academic and research institutions.

• As suppliers jockey for better positions in their chosen markets, price competition is expected to intensify. In light of this, most intend to keep quotes at current levels in coming months.



The above is extracted from the Executive Summary of China Sourcing Report: Lighting & Electricals


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Posted: 30 March 2010

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