China's LED companies account for 90% of global production capacity. Data show that LED lighting exports have risen in recent years. Taking Guangdong Province as an example, in 2014, the export of LED key areas in Guangdong Province increased by 35% compared with the same period of last year. However, it is still concentrated in developed markets such as Europe, America and Japan. In developed countries such as Europe and the United States, the roadmap for eliminating incandescent lamps was formulated earlier than China, and the market acceptance of LED lighting has been relatively high.
This also makes enterprises pay more attention to the development of emerging markets. “The Belt and Road Initiative is a major strategic opportunity for the transformation and upgrading of China's LED industry.†Zhu Xiaojuan, Director of the Industrial Competitiveness Division of the Industrial Security and Import and Export Control Bureau of the Ministry of Commerce, said: “The Belt and Road is mostly emerging economies and development. China is a new blue ocean for China's LED product exports. It is understood that with India as the representative, emerging market countries generally lack the LED product industry chain, especially for China's LED lighting products with cost-effective advantages. Under such a background, lighting giants such as NVC have focused on emerging markets as a key expansion area. In terms of specific strategies, NVC chairman Wang Donglei said that he will focus on supporting his own brands.
However, industry experts also reminded that there are risks in exploring emerging markets. In the process, we must pay attention to avoiding trade barriers and identify the market direction. Some experts even call on the state to support the policy. It is reported that in order to promote the LED companies to go out and organize their participation in Russia, Shenzhen will directly subsidize the booth expenses.
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