Feng Hao, vice president and president of Greater China, the United States UL: Brazil LED lighting market has potential and China has obvious advantages.
The Rio Games will be China’s lighting brands into the international arena, many Chinese enterprises to participate in the lighting of the Olympic venues or construction of local tourist attractions, such as NVC Lighting provides services and programs, Riyadh, Chau Ming science and technology as the diving venues LED display for the Olympic Games. Made in China broke ODM impression, so that foreign users to re-understanding.
The United States UL as a third party certification authority, has been providing safety testing and certification services for Rio’s Olympic bid lighting companies in China, to help these companies meet access requirements export destinations. Opportunities and challenges for the South American market for Chinese enterprises of lighting, the reporter Feng Hao, vice president and president of Greater China, Global UL interview.
Chinese suppliers have four advantages
Reporter: The Rio Olympic Games, many Chinese enterprises won the bid lighting project. Compared with foreign manufacturers, what China lighting equipment supplier to get the project in the Olympic competitive advantage?
Feng Hao: Chinese lighting equipment suppliers to win the “Olympic mall” There are several factors. First of all, pay attention to the protection of investment and intellectual property core technology research and development is the fundamental reason; secondly, the layout of the whole industry chain is a big advantage, China lighting business from production to sales can customize the control, attention to product safety, long-lasting and reliable sex; third, China lighting company’s products meet the local Brazilian differentiated needs, such as to meet the lighting needs in public areas, indoor and outdoor lighting and special sports; fourth, compared with US and European companies, in China there are still some labor cost advantage.
The winning Chinese enterprise, Chau Ming science and technology are the strengths of LED display, it has been successful in several major international sporting events before its sports screen to create a lot of classic case. For example, during the 2012 European Cup stadium screen to provide for the National Stadium in Warsaw. The NVC is one of the leading Chinese lighting products and application solutions provider, has been promoting sports marketing, at the 2012 London Olympics, winning NVC products on a number of grounds. We can say that these companies in their respective fields have reached world-class level.
Reporter: What are the special requirements of the Rio Olympic stadium lighting project there?
Feng Hao: lighting the Olympic venues will be more stringent functional requirements, which mainly related to the design of the project. Such as swimming venues venue glare control, diving projects, under the platform and springboard need to set some lighting to eliminate shadows, diving pool have warm accent lighting. Therefore, Chinese enterprises can get the Olympic project, not only is the sponsor of the product quality recognition, but is recognized engineering capabilities.
Independent brand building long way to go
Reporter: How China lighting companies in the Brazilian market share? All these years, what changes occurred in the Brazilian market? How the future potential?
Feng Hao: you can see very significant changes in the data published by the Brazilian Association of Lighting from Brazil 2014 total sales of LED lighting products 200,000, compared with 2011, an increase of 6 times. If it can maintain the current growth rate, expected sales of 3 years LED lighting products in the lighting industry in Brazil will account for half of all sales, which means that the product will replace the traditional LED lighting products in a short time. For example, the State of Sao Paulo there is a street light replacement program, a state which only requires the purchase of new LED lights 580,000, so the market potential is very large.
All along, the Chinese enterprises with technology, products and fast response speed occupied the South American market. China has become Brazil’s largest LED importing country, accounting for more than 60% of total imports, Brazil’s dependence on import of lighting products in China is gradually increasing. But objectively speaking, the current Brazilian market or in the main European and American brands, such as OSRAM, Philips, GE and Brazil and other local Volkswagen brand FLC, Chinese manufacturers mainly doing OEM OEM, own brand building long way to go .
Reporter: Brazil for safety, technical standards for lighting products, whether or improved? What is the impact on Chinese enterprises to enter the Brazilian market?
Feng Hao: South American market has great potential to attract a lot of lighting companies in China, the primary challenge they face is the market access issues. According to the Brazilian legislation, LED lighting products must have Inmetro certification requirements for certification bodies must be accredited local institutions.
In the LED lighting part, Brazil introduced in 2015, mandatory certification requirements for LED bulb and LED lamp two kinds of lighting products, although the LED lamps and LED driver has not been specified, but the development trend, the future may there will be some new regulations. Brazil LED bulb and lamp standard is actually the International Electrotechnical Commission (IEC) and the US Energy Star standard assembly, that is to say to meet the safety requirements of European standard, the subject of energy efficiency to meet US requirements.
Inmetro in Brazil to enhance the safety and performance specification lighting products each year. June 13, 2016, mainly in the regulatory part of the manufacturer, is expected in mid-2018 from the production chain to the retail part of the implementation of comprehensive supervision. Higher standards for lighting business is both a challenge and an opportunity, grasp the opportunities of the enterprise will closely monitor regulatory changes and update technology. UL has been encouraging enterprises in product development on the front-end integration of security thinking, mastery of the elements, ensuring timely market access qualifications.
UL in South America have a very high recognition, it has built a laboratory in Brazil, and has fixed collaborating laboratories and certification bodies in other South American countries. Brazil is one of the UL certification agency approved the first batch of government, but also to meet the requirements of the product category most widely Inmetro certification bodies, our global collaboration system is also helping Chinese enterprises to enter the South American has played a good role. For example, UL in Guangzhou, Suzhou laboratory can carry out the relevant tests, the test can achieve China, Brazil and certification, and coordination to avoid the transoceanic shipping samples, saving time and costs.
Chinese companies targeting emerging markets
Reporter: From a technical standard certification situation, China sea lighting trend how? Which were aimed at the market?
Hao Feng: First, the export volume and product composition point of view, according to China Customs export data, all these years in LED lighting products are the main exports continued to grow, the traditional lighting products exports have been declining, indicating that as the different markets of the city planning and layout, a lot of hardware there is a need to gradually build and upgrade, the demand for LED products is increasing.
Secondly, from the point of view of export destinations, China lamps exports to developed countries is currently still the main exports accounted for the first few markets are the United States, European Union, Japan, Russia and these countries in the past few years, imported lamps, especially LED lamps have increased import barriers, constantly upgrading technology requirements. Chinese manufacturing safety, electromagnetic compatibility, energy efficiency, performance, service life, national differences in terms of the need to meet different market access standards, otherwise the export will be blocked.
Under the impetus of “along the way” initiative, more and more Chinese enterprises have LED lighting is not only aimed at the traditional Europe Day, but more for emerging markets such as South America, the Gulf region and India. China LED lighting products annually exports about $ 10.8 billion, of which exports Brazilian and South American market only to 1/10.