Recently, some media reports said that India celebrated the year's most important Diwali on October 31, but the waves of resistance against Chinese goods triggered by social media have spread to many places in India. Diwali lanterns and LED lights produced in China Sales in Mumbai dropped 30% to 50%.

 

Reporter engaged in the verification of the person engaged in the Indian LED trade was informed that the trade in which they engaged in the domestic LED exports to India dropped by nearly Bacheng. But chiefly the Indian government enacted last year's BIS certification of imported LEDs to India, which was strictly enforced this year, not the result of social media boycotts.

 

An LED trade in India said that based on the above factors, has begun to change the way engaged in the LED trade in India, the future will be the export of LED parts and high-end LED-based.

 

BIS certification as the main reason for the decline

 

Public information shows that BIS certification refers to the specific responsibility for product certification by the Bureau of Indian Standards (Bureau).

 

A person engaged in the introduction of LED trade in India, BIS certification similar to the domestic 3C certification, implemented from last year in May, recently started strict implementation, making the domestic did not get BIS certification of LED companies can not enter the Indian market.

 

LED lighting business Mu Linsen (002,745) India's chief executive Linda Linda believes that India did have a boycott of China's LED phenomenon before Diwali, but only a handful. However, some media reports indicate that the sales volume of LED in India's Diwali market is changing, because many are based on retail sales, and the data are hard to measure.

 

Lin Yi further explained that there will be a significant decline in the number of domestic LED exports to India, mainly because the domestic production of LED has not met the corresponding standards, strict implementation of BIS certification, the domestic LED can not enter the Indian market. Although this requirement is for all LEDs imported from India, domestically produced LEDs dominate the Indian non-standard LED market.

 

Guo Xiu, secretary general of Guangdong Electric Lighting Association, analyzed so far that the voltage instability in India has led to the inability to provide an environment in which LED can be effectively used. Moreover, the LED market in India is rather chaotic and is very sensitive to the price of LED. the price of. The domestic production of LED companies in line with standards and do not meet the standards between the LED, the price difference of about 3 times. This led to the domestic LED exports to India, mostly for the manufacture of domestic SMEs.

 

However, in addition to the strict implementation of the BIS certification by the Indian government, the domestically produced LED has a diminishing price advantage. Linda introduction, now in India to meet the specifications of the LED, the price has been similar to China's LED, which weakened the Indian consumers in the purchase of LED price considerations.

 

Export LED parts and high-end products

 

Strict implementation of the BIS certification and the disappearance of low-cost advantages, although the domestic LED exports to India blocked, but based on the huge demand for the future of the Indian LED market, domestic LED companies and traders, began to change the mode of export trade.

 

Zhongshan Han Feng Lighting Co., Ltd. General Manager Luopian Xing said the company has not yet officially entered the LED market in India, but has been concerned about, ready to enter the future. Although the BIS certification makes it difficult for a large number of domestic LED's to be exported to India, the Indian government will give tax refunds and subsidies to enterprises in the domestic procurement of LED accessories and then to India for assembly, giving these enterprises priority in using local resources because local Of employment, and the local labor costs far lower than the domestic.

 

Guo Xiu introduced that many of the original Indian buyers to China to purchase LED, mostly contact with the low-end LED manufacturers, but also because of those who have the role of pin traders in which play a role, so that these companies occupy the Indian LED non- Standard market. And those who successfully transition to do high-end LED business, because there is no trader to communicate, it is difficult to enter the LED market in India.

 

According to report, in the domestic LED listed companies, only Mu Linsen (002745, SZ) set up a larger factory in India. Lin Yida, who is mainly in charge of Mullion's business in India, said that despite the low level of consumption in India, the demand for LEDs in the Indian market is very high in the future. Prior to the Indian government asked to replace the country more than 700 million ball bulb, so Mulinsen consider directly in the local production, or provide LED semi-finished products. It is precisely because Mu Linsen are provided by the original LED devices and semi-finished products, as a supplier of LED parts, as long as the purchaser has BIS certification on it.

 

A person engaged in the Indian LED trade believes that the future trend of India LED trade will turn to LED components and provide more professional technical services. In addition, based on the relatively large gap between rich and poor in India, from a more detailed point of view, will consider engaging in high-end LED trade.

 

However, the current LED market in India can only do the packaging of LED products. According to Linda introduction, most of the original LED devices imported from India come from China, India does not have the domestic production conditions.

 

Guo Xiu analysis, a lot of state-level industrial parks in India are also domestic investment, but India's technology industry is relatively backward, transportation, logistics and other ancillary facilities are not perfect, the sales network to build a difficult, but the country is already formed a relatively perfect LED product line .