Several Taiwanese LED lighting suppliers are looking to capitalize on the rapidly growing Chinese market by gaining a foothold in the market, according to a study released on Thursday.
In the report, LEDinside, a research division of Taipei-based market information advisory firm TrendForce Corp (集邦科技), said that major Taiwanese LED lighting manufacturers, such as Everlight Electronics Co (億光電子), Edison Opto Corp (艾笛森光電) and Unity Opto Technology Co (東貝光電), are gearing up to penetrate the Chinese market.
Earlier this year, Everlight signed up Chinese distributors to build a comprehensive LED lighting sales network in China, while Unity Opto established a strategic alliance with Hangzhou-based Honyar Electrical Co (鴻雁電器) to sell co-branded products in China, LEDinside said.
Meanwhile, Edison has joined up with traditional lighting manufacturers to expand its LED lighting operations for a larger share of the Chinese market, according to LEDinside.
The companies are hoping their efforts will pay off so they can gain a competitive edge in China’s huge LED lighting market, LEDinside said.
Total sales in the sector for this year are expected to rise 36 percent from last year to 32.4 billion yuan (US$5.29 billion), the research firm added.
LEDinside said that sales of household lighting products for this year are expected to grow 96 percent year-on-year and will record the highest growth rate among all segments of the Chinese LED lighting business.
Sales in the commercial lighting, industrial lighting and outdoor lighting segments are expected to rise year-on-year by 24 percent, 28 percent and 46 percent respectively, LEDinside said.
It said four leading lighting brands in China — NVC Lighting Technology Corp (雷士照明), Opple Lighting Co (歐普照明), PAK Corp (百勝) and Foshan Electrical and Lighting Co (佛山電器照明) — are reallocating some of their funds to the LED lighting business.
However, the business strategies of the four firms may not be aggressive enough as they may be seeking to avoid the possibility of their traditional lighting operations being affected by the new LED lighting investments, the report said.
The four businesses’ main rivals, including Master Light Source Electronics Co (光源世家) and Shenzhen Changfang Semiconductor Light Corp (深圳長方半導體照明), have been offering deep discounts to boost their competitive edge in the new market, LEDinside added.