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Led Lighting – Challenges

Undoubtedly,led lighting industry is carrying vast businesspotentials in india hence entire indian and global lighting industry keeps their eyes to tap Indian Market businessopportunities.

Perhaps this was the reason why indian led lighting marketattracted various Indian,International & Niche players in thisindustry.For example,Indian Lighting players are alreadyavailable in market like Philips,Osram,Bajaj etc.Some Playersout of Industry like Eveready,Wipro etc. Some New entrantswho were never in this field Like syska,Moser Baer etc. New International entrants Like Oppel From China. ManyMore Small Niche Players are spread across India.

Unfortunately, if we analyse, we will find that all companies are still not satisfied with the market growth as it wasforecasted.In fact Several Small Size units has stopped working and all big players are surviving only due to theirreserves.

Still Indian Led Lighting Industry is in growing phase. Remember ! Market have to attain it’s maturity to perform iton it’s best economic potential level.For The same different transition phases have to cross by market andplayers.Lighting Industry is facing critical latent challenges as per its growth rate. Following are certain majorchallenges which market players are witnessing…..

Manufacturing Vs Import Vs Marketing

This is the most critical factor for disappointing result by Indian Led Market. We know that China is bulkmanufacturer. While Making entry in Indian Led Market Most of companies tried to established theirmanufacturing unit ( led Lighting Assembly Unit). Remember managing cost from china import is always a bigchallenge to us becoz still in india chip / diode level bulkmanufacturing facilities are not available.Second,marketwas not enough demanding to absorb the produced material.All Small Big Manufacturing units putted less effort to developtheir market first.Hence due to insufficient demand from massmarket survival is tough.

Lack Of Core Led Lighting Manufacturing Technology :

In India Chip Or diode level manufacturing technology is stillnot available. This micro level technology is quite costly andis limited to certain countries & companies. Hence productioncost In India will be always high because for diode import andfor other key component we have to be dependent onexport.Further the skilled work force is also in poor condition in india while in china skilled work force is easilyavailable which provide a cost benefits to them.

Government Regulations :

Government rules & regulations plays an important role to direct any industry. Any small change in law can deeplyimpact the industry. Like BIS compulsion affected many manufacturing units. Upgrading to BIS level quality ledlighting manufacturing facilities is robust and expansive procedure and can become a challenge for smallplayers.Similarly Offering led Bulbs @ Rs 10 va delp programme also creates competition among private vsgovernment.

Consumer Diffusion Process:

One should not forget that consumer takes time to accept any newly introduced technology in market no matterhow beneficial it is ? Several stazes are involved in this process by which consumer passes and adopt anyproduct in mass.

Here marketer have to play a smart role and should be limiting their budget & activities as per diffusion processbecoz result on introductory level will be less while on maturity level sales from market will be on top.However allplayers putting their all major efforts in current market. They should be wise enough that when they have to investand how much the have to invest in market.Still led lighting market players have to wait for mass adoption phaseof consumers.

Slow Response By Mass Market Consumers:

As it was anticipated that there will be huge demand by mass consumer, but looks that mass consumer is still nottriggering for Replacement of Traditional bulbs by led bulbs.Reason behind it is that Value addition or energysaving & reduced electricity bill by Led Lighting is very small for domestic users and is not enough to kick therelative benefit impact. However in project this saving can be clearly realised and experienced by consumers butin domestic filed product satisfaction indicators gravity is not that much enough to develop a cue in consumersmind.

Further Replacement process will be only when existing lighting systems completed t cycles in home i.e. when inhomes, installed bulb,cfl will stop working than consumer may think to replace it by led Bulb otherwise due to costfactor is also an barrier for replacement of traditional bulbs by led lighting.

Distribution Infrastructure Challenges For led Lighting Industry:

Very few players one who are old and existing in market like philips etc have proper distribution structure in India.Most of new commer have to develop multidimensional distribution system to ensure availability of their brand inevery small town.India, which carries 1.2 billion population,30 states,530 district,700 town and more than 6 lakhsvillages is a very vast territory and developing distribution infrastructure across india is biggest challenge for newentrants. Definitely it takes time and huge investment will be required for returns.

Unfortunately,Most of players just investing on ATL activities and are still away from ground work in market whichwill be ultimate factor for success or failure of any brand.For an example very much establishes companies likeHLL, Dabur etc are best examples in this regard , HLL market parlance is more than 6 million shops,Dabur isapprox 4 Million,Eveready market parlance is approx 3 million,while in lighting Industry Philips which is Leader iscatering only 1 Million Shops.

Nature Of Indian Market

Nature of indian market is quiet complex on the basis of different parameters. Based of geographicalexpansion,availability of consumer class, Languages,Income level,Socio Economic parameters etc. organised vsunorganised character etc etc commonly makes a very very complex market which become quite tough tomanage it by marketers.In such a diverse market environment marketers have to play very smartly to achievetheir goals.

Nature Of Led Lighting Market Competition:

Led Lighting Industry market nature is perhaps best example of complex market competition. First nature of ledlighting products makes itself a complex and hybrid product because some of feature of led lighting resemblesfrom lighting product, some characters of led Lighting resembles and behaves as consumer durables &electronics while some other feature of led lighting products reflects industrial product or service product and alsoit behaves like consumer or fmcg product. It is clear that product nature of led lighting resembles with manyindustries products making it very critical to decide business strategy for marketers.

On the same background nature of led lighting market also becomes complex and hybrid where market dynamicsand behaviour of different industry is amalgamated.Deciding a unique market strategy is major challenge forplayers in Indian Market.

Finally- no doubt that Led Lighting is next boom In Indian economy because all the traditional lighting equipmentmust have to be replaced by led lighting. But managing this complex market effectively will be only mantra forsuccess.