In 2015, as global LED lighting market tends to be increasing continuously, China LED lighting manufacturers are taking their arms to expand their export business scales in North America, Asia and Europe. According to current situation, North American lighting market has been gone through soaring development at the early half year. However, as for European market, most China LED lighting manufacturers are in a tight spot now. How to break the pathway to European LED lighting market is one tough task facing by China LED lighting manufacturers.
Based on market search from Frost & Sullivan, one market research firm, Germany has become NO.1 in European energy-efficiency lighting industry prior to other developed countries like United Kingdom, France and Italy. The estimated turnover of LED lighting growth in German is predicted to increase by 27% till 2018. Four elements become the main market drivers for this large potential market: Customers’ demand for energy-efficiency products, falling down price in lighting market, government regulatory phasing out old low energy-efficiency solutions and advanced ongoing research and development of lighting technology. Plus, Germany’s lighting expertise in lighting design, production, as well as hi-tech material. All of which contribute to favorable investment and trade environment and condition in Germany market.
There are three investing areas booming in German markets: outdoor lighting ,interior lighting and automobile.
invest areas for german led lighting market: outdoor lighting, automobile and interior lighting
In German, 50% of electricity was used in street, road lighting projects. Nearly 1/3 Germany street light is over years, requiring maintenance and replacement. Outdoor lighting is becoming one potential investment area.
German is one famous country in the field of automobile. Today, LED technology has been applied in this area. The automobile manufacturers are using LED lights to replace traditional taillights.
Otherwise, with the development of commercial and residential lighting in German, large-scale LED lighting systems in interior illumination will be another promising field.
As much is German one favorable market for business, major China LED lighting manufacturers are confronted with difficult situation when exploring. It might be accounted for that it is still a matter of time and methodology to break the pathway to Germany LED lighting market. It is high time that lighting companies expanded Germany market. However, it is a long-time work. And most important of all, it must be done in the right way.
How to break the pathway to Gemany LED lighting market in the right way and open up the sales channel in German. Here makes analyses on three effective business ways which have carried out by many China LED lighting manufacturers.
1.To be one qualified exporter for local big importers and wholesalers
There are full of big importers and wholesalers in German. They bulk purchased LED lamps from China regularly. And then the products they purchased are applied in the next-level trade or commercial lighting project management. One mainstream sales channel for LED lights is supermarket in German, accounting for 50% of all sales.
Current situation is that everyone from Asia want to become suppliers in this market. Large competitors provide the same products just different for services. Competition is violent for China lighting manufacturers. A long-term work will lead to price war and high cost and quality management for lighting manufacturers. Worse, China LED lighting manufacturers would never touch deeply in local market without direct marketing, service. Chinese companies will still remain like one supplier with no brand and no quality.
2.Becoming OEM or ODM manufacturer for big branded international companies
Most of European LED lighting market is monopolized by international branded lighting companies like Osram, Philips, Siemens, Trilux, Artemide, Guzzini, Flos, Fontana Arte, Zumtobel etc. Their production is made in China but with Italian or famous architect design for them. To be listed in the OEM or ODM manufacturer for these branded companies is one lucky but hard thing. Factory Audit and product quality standards are the principal. For China lighting manufacturers, it is to follow the customers for everything like they do with a lot of expanses and step by step to follow customers in the field. If you are lucky and renowned to be NO.1 in your product, you will be a winner to be listed.
3.Setting up Office in German with Own Brand-Direct marketing and Distributing
To be a winner in Germany marketing and branding you should have people there. Affirming your brand in Germany market and local marketing is the proper way. This is the way to be different from your competitors and make your presence in the local field. Contact closely with your customers and make local market investigation. Opening up an office in German is preliminary investment. It is one long-term and complicated task. But you are worthy it.