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Why LED Market in Southeast Asia Is So Hot?

      Source: China LED Inside

    LED lighting industry in southeast Asia develops very fast, which mainly benefits from infrastructure construction and great promotion by development and influence of Association of South-East Asia Nations. ASEAN is a governmental international organization which get all nations in southeast Asia together. ASEAN has been one of the fast economic development areas all over the world since its establishment in 1967.

      Network of OFweek Lighting 
     According to some statistics by China led inside, the total lighting market value of the six major Southeast Asian countries - Thailand, Singapore, Malaysia, Vietnam, Indonesia, and Philippines - will reach about USD 4.8 billion in 2015. Out of that amount, about 1.5 billion US dollars come from the LED lighting market. LED lighting market in southeast Asia grows fastest in 2013 with a year-on-year growth rate of 63% and it grown a bit slow from 2014 to 2015 but increase speed is still over 30%.
    Besides, LED lighting penetration rate in southeast Asia market is expected to grow from 12% to 13%. Southeast Asia market is becoming the most energetic and potential fertile soil for LED lighting development.
      Why LED market in Southeast Asia is so hot? 
     ASEAN not only actively negotiates free trade agreements with foreign countries but also sets establishing ASEAN Economic Community as a goal. The establishment of ASEAN Economic Community makes countries in southeast Asia a single market and manufacture base. And the aim of ASEAN Economic Community is to promote free flow of goods,service and professional labor force.
      As for policy and standard, ASEAN economic community will implement electronics equipment uniform standard AHEEERR. For local market and consumers, the implementation of uniform standard enables more good competition join local market and it is conducive to improve product quality and standard so as to improve market acceptance.
   With rapid market increase and policy support, market in southeast Asia is bound to become overseas battle for future development of China LED manufacturers. However, manufacturers still need to choose channels and models which are appropriate to self development and local market in order to open overseas market.


      Take China import lighting products as example, lighting industrial chain in southeast China can be classified into 5 categories:

      1.Chinese manufacturers provides devices and equipment for local lighting factories.
      2.Import Semi-finished Product & Local Assembly
      3.Import Light Source & Local Assembly
      4.China factories directly provide ODM service and delivery goods to countries all over the world.
      5.China manufacturers with their own brands sell products through projects and wholesale channels.

      To sum up, international manufacturer shares like Philips,GE and Toshiba in southeast Asia countries are very high and then are local large factories.But the international brands and local large factories generally choose China factories to do ODM service and directly delivery goods from China to other countries. OEM service is comparably steady and large order quantity so this kind of industry chain structure has the greatest proportion in southeast Asia.Its average proportion is over 50%. And from self brands to local market selling, China factories’ share accounts for 25%.



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