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The negative impact of the European debt crisis on Chinese exports has already emerged. Our reporter learned at the 110th Canton Fair that the shrinking demand in Europe and the United States has led to the export of lighting companies to emerging markets represented by South America. Industry analysts believe that the demand in the European and South American markets is very different. Although low-to-medium products are popular in South America, Chinese companies should get rid of the slump of low-price competition and explore a more active and healthy development path.
The shrinking of European and American markets is accelerating the competition for energy-saving lamp exporters in emerging markets.
At the 110th Canton Fair, the European debt crisis led to a reduction in the number of European buyers. According to Wang Jiangjun, sales manager of Zhejiang Shangguang Lighting Co., Ltd., this year's European customers are 30% or 40% less than last year, and the booth is slightly deserted.
Zuo Bin, deputy manager of the sales department of Lanpuyuan Lighting Technology Co., Ltd. told this reporter: Europe is our big customer, accounting for 90% of the total. But this year, European guests have a strong wait-and-see atmosphere, and export performance has fallen sharply. Now that we have carried out the export strategy transfer, South American countries are undoubtedly the first choice.
Who can replace the European South American market is less affected by the financial crisis. The huge market, strong economic growth momentum and excellent investment environment have become the highlights of South America to attract Chinese exporters. The regulations issued by the South American government to replace incandescent lamps with energy-saving lamps have created a huge demand for energy-saving lamps, which provides a good opportunity for Chinese energy-saving lamps to enter the South American market. Zuo Bin said. He said that the company has landed in South America since last year, and the South American market now accounts for 10% of total sales, and will increase to 25~30 in the next two years.
The company where Wang Jiangjun is located is a small-scale enterprise mainly engaged in OEM production, and is OEM for lighting fixtures in Brazil and Mexico. We have long been optimistic about the South American market. We have entered the South American market for six or seven years, and South America accounts for 60-70 of our market share. I believe that the future economy of South America will remain active. He said.
The reporter observed at the exhibition site that many South American buyers came to the booth for inquiry. On the notebooks they carry with them, each page is full of information about the manufacturers, models, prices and other information of different energy-saving lamps. A buyer told reporters that China's lighting products are very popular in South America. After returning home, they will carefully compare the products and quotations of each company.
Beware of low-cost competition A large number of enterprises flocked to the South American energy-saving lamp market, followed by low-cost competition and product plagiarism.
Zuo Bin told reporters that Lampuyuan Lighting has accelerated its pace of development in the South American market in the past two years. However, in stark contrast to the high-end products in Europe, the low-end products are mainly exported to South America, and the low-price competition is fierce. In the context of the increase in domestic labor costs this year, the price of products is only increased by 5, and the price of small spotlights is 3.6 US dollars. The profit margin of enterprises has evaporated almost overnight. The market polarization is very serious. The stronger the stronger and the weaker the Matthew effect is becoming more and more significant. Zuo Bin said.
The status quo of low-price competition has been confirmed in the lighting exhibition area of ​​the Canton Fair. The reporter saw that the price of a product of a foreign trade company was incredible. A 25-watt energy-saving bulb was quoted at only 0.13 US dollars, or about 0.8 yuan. Zhang Haibo, salesman of Ningbo Huasheng Lighting Co., Ltd. bluntly said: The energy-saving lamp industry is highly competitive. South American and Middle Eastern customers have very low requirements, as long as they can shine, the price is certainly cheaper. But in this case, the quality cannot be fully guaranteed.
Many industry insiders interviewed by the reporter believe that at present, China's energy-saving lamp enterprises have no leader in the South American market, and they are in a disorderly state, which is in urgent need of policy guidance.