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Brazilian LED lighting Market potential big China manufacturing advantage obvious

Aug 25, 2017


U.S. UL global vice president and Greater China President Feng Hao: Brazil LED lighting Market potential big China manufacturing advantage obvious.

The Rio Olympic Games will be China's lighting brand to the international arena, many Chinese lighting companies to participate in the Olympic venues or local tourist attractions, such as the lighting for the diving venues to provide lighting services and programs, Liard, Chau Ming Technology for the Olympic Games to provide LED display. China's manufacturing has broken the impression of OEM, allowing foreign users to know again.

UL, as a third-party authoritative certification body, has been awarded to the Chinese lighting enterprises in Rio for the Olympic Games to provide security testing certification services to help these enterprises to meet the export destination of access requirements. In view of the opportunities and challenges brought by the South American market to Chinese lighting enterprises, the journalist has interviewed Feng Hao, vice president of UL and President of the Greater China region.

Chinese suppliers have four advantages

Reporter: The Rio Olympics, Chinese enterprises won a lot of lighting projects. What is the competitive advantage of China's lighting equipment suppliers in the Olympics compared to foreign manufacturers?

Feng Hao: China lighting suppliers can win in the "Olympic Mall", there are several factors. First of all, pay attention to the core technology research and development of investment and intellectual property protection is the fundamental reason; second, the layout of the whole industry chain is also a major advantage, the Chinese lighting enterprises from production to sales can be independent control, pay attention to product safety, long-term and reliable; third, the products of China's lighting companies meet the local needs of Brazil, such as the need to meet the needs of public areas, indoor and outdoor lighting and special sports projects, and in comparison with European and American enterprises, China's manufacturing still has a certain labor cost advantage.

The winning Chinese enterprises, Chau Ming Technology is the strength of LED display, its sports screen has been many times in the international large-scale sporting events have been successful, creating a number of classic cases. For example, during the 2012 European Cup for the Warsaw National Stadium to provide the stadium screen. NVC Lighting is one of the leading providers of lighting products and application solutions in China, and it has been promoting sports marketing, and in the 2012 London Olympics, NVC lighting products won many venues. It can be said that these enterprises in their respective fields have reached world-class level.

Reporter: What are the special requirements for the lighting project of the Olympic venues?

Feng Hao: The lighting in the Olympic venues will have more stringent functional requirements, mainly related to engineering design. For example, the swimming venues of the glare control, for the diving project, the platform and the springboard under the need to set some lamps to eliminate the shadow, diving warm-up pool to have a focus on lighting. Therefore, the Chinese enterprises can get these Olympic projects, not only the organizers of the Enterprise product quality recognition, but also the engineering design ability recognition.

The construction of independent brand

Journalist: What is the market share of Chinese lighting companies in Brazil? What has changed in the Brazilian market these years? What is the potential of the future?

Feng Hao: The data from the Brazilian lighting Association can be seen as a significant change, with a total sales of 200,000 Brazilian LED lighting products in 2014, 6 times times higher than in 2011. If you can maintain the current growth rate, it is expected that 3 years of LED lighting products sales will account for the Brazilian lighting industry in half of all sales, that is, LED products will be in a short time to replace the traditional lighting products. For example, Estado De Sao Paulo has a street lamp replacement plan, only this state will need to buy 580,000 new LED lights, so the market potential is very large.

Chinese companies have long occupied the South American market with technology, products and response speed. At present, China has become Brazil's largest exporter of LED, accounting for more than 60% of total imports, Brazil's lighting products in China's dependence on imports gradually increased. But objectively speaking, the current Brazilian market is mainly European and American brands, such as Osram, Philips, GE and the Brazilian local popular brand FLC, and so on, the Chinese manufacturers are still doing OEM, independent brand construction is a long way.

Reporter: Does Brazil improve the safety and technical standards of lighting products? What is the impact on Chinese companies entering the Brazilian market?

Feng Hao: The South American market has huge potential and attracts a lot of Chinese lighting companies, and the first challenge they face is market access. According to Brazilian regulations, LED lighting products must have INMETRO certification, require the certification authority must be a local authorized institutions.

In the LED lighting section, Brazil in 2015 issued a LED bulb lamp and LED lamp lighting products, two kinds of mandatory certification requirements, although the LED lighting and led drive has not been specified, but from the development trend, there may be some new regulatory requirements in the future. Brazilian LED bulb lamp and lamp standard is actually the International Electrotechnical Commission (IEC) and the United States Energy Star Assembly standards, that is, safety regulations to meet the European standard requirements, energy efficiency to meet the requirements of the United States standard.

The Brazilian Inmetro annually promotes safety and performance specifications for lighting products. Before June 13, 2016, the regulation was mainly in the manufacturers ' chain, and it is expected to implement full supervision from the production link to the retail link by mid-2018. The improvement of the standard is both a challenge and an opportunity for the lighting enterprise, and the enterprises with the initiative will pay close attention to the change of the law and the update of the technology. UL has also been encouraging enterprises, in product development at the forefront of the integration of security thinking, grasp the main points of the standard, to ensure timely access to market access.

UL in South America has a very high degree of accreditation, has been in Brazil to build a laboratory, and in other South American countries have a fixed cooperative laboratories and certification bodies. UL Brazil is one of the first certification bodies recognized by the Government, but also to meet the inmetro requirements of the most extensive category of accreditation bodies, our global collaboration system is also helping Chinese enterprises to enter South America has played a very good role. For example, the UL in Guangzhou, Suzhou Laboratory can carry on the related test, may realize the Chinese test, the Brazilian certificate, avoids the sample trans-ocean transportation and the coordination, has saved the time and the cost greatly.

Chinese companies target emerging markets

Reporter: From the status of technical standards certification, the trend of China's lighting equipment to sea? Which markets were targeted separately?

Feng Hao: First of all, from the point of view of export volume and product composition, according to the Chinese customs export data, these years LED lighting products mainly exports continue to grow, traditional light source products have been declining, which shows that with the different market planning and layout, a lot of hardware has gradually built and upgraded the need for LED products increasing demand.

Second, from the point of view of exports, China's lamp exports are still mainly developed countries, exports accounted for the first few of the market is the United States, the European Union, Japan, Russia, these countries in the past few years, the import of lamps, especially LED lamps and lanterns have increased the threshold of the import, and constantly China's manufacturing in the security, electromagnetic compatibility, energy efficiency, performance, service life, national differences need to meet the different market access standards, otherwise the export will be blocked.

In the "along the Way" initiative, more and more Chinese LED lighting enterprises have not only targeted the traditional European and American days, but more to the emerging markets, such as South America, the Gulf, India and so on. China's LED lighting products export about $10.8 billion a year, which accounts for only 1/10 of the Brazilian and South American markets.