Market research: Light bulb market in China

05Sep2012

China will phase out power-draining light bulbs within five years in a move to make the world’s biggest polluting nation more efficient. This is certain to impact the global market. China will ban the import and sale of 100-watt-and-higher incandescent bulbs starting October 1, 2012, in an attempt to save energy and curb climate change. The country will also impose bans on 60-watt-and-higher bulbs starting October 1, 2014 and 15-watt-and-higher old-style bulbs starting October 1, 2016. However, the National Development and Reform Commission statement stated that the time frame of the last step may be adjusted according to an evaluation in September 2016.

Chinese most famous domestic light bulb brand: OPPLE (欧普)

OPPLE has been a compact fluorescent lamp manufacturer since 1996, specializing in designing and manufacturing a variety of lamps and fluorescent fixtures. Their product offering includes compact fluorescent lamps, ceiling lamps, down lights, LED table lamps, spot lamps, metal halogen lamps, light sources, and more. The company states that its products boast the advantages of compact size, fashionable design, convenient use and a long service life compared to its competitors. Its compact fluorescent lamps and fluorescent fixtures are widely applied in a full range of environments, including homes, shops, offices, schools, hotels, factories, hospitals, as well as residential areas.

International famous light bulb brands in China: Philips and OSRAM

Philips Electronics is a Dutch multinational electronics company headquartered in Amsterdam. The company had revenues of €25.42 billion in 2010, making it one of the largest electronics companies in the world. It employs about 114,500 people across more than 60 countries. In Greenpeace’s 2011 Guide to Greener Electronics that ranks electronics manufacturers on sustainability, climate and energy and how green their products are, Philips ranked in fifth place (down from 3^rd place) with a score of 4.5/10.

Osram AG is a multinational lighting manufacturer headquartered in Munich, Germany. It is a wholly owned subsidiary of Siemens and is the second-largest lighting manufacturer in the world (after Philips).

Light bulb companies focus on environmental and energy sustainability

In 2007, the United States government passed a law banning the sale of incandescent light bulbs by 2014. As a result, GE closed recently its last major incandescent light bulb manufacturing factory in the United States. Environmental activist groups promised the new law would create new green jobs in the US, but workers at GE’s plant in Wincester, Virginia are finding that the law is merely creating jobs overseas in China.

GE could retrofit its Winchester plant to produce CFLs, but GE CFLs would be 50 percent more expensive than bulbs made in China with the benefit of cheap labor. Realizing it could not compete with such a cost disadvantage, GE is closing down its Winchester factory, putting 200 workers out of a job.

Daxue Consulting China Market Research

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