Looking at the foreign trade situation of LED lighting industry in five dimensions

At present, the situation facing China's foreign trade development is more complicated and severe than in 2014. In the first 10 months of 2015, China’s exports were 1.86 trillion US dollars, down 2.5% year-on-year. From the perspective of export products, mechanical and electrical products maintained growth, with exports increasing by 0.8% year-on-year, of which lamps exports increased by 13.9%, significantly higher than the national overall level. Looking back over the past five years, China's lighting industry's exports continue to show rapid growth. Compared with the downturn in the overall economic environment at home and abroad, especially the downward pressure on the foreign trade situation, lighting appliances have become one of the few industries that continue to grow. Although exports continue to grow, the continuous decline in export growth also reflects the current complex factors of the lighting industry in the face of foreign trade, and still need to carefully analyze the future foreign trade situation of the industry. 1. Is the market demand for foreign trade development still strong? The demand of the international market is the first element of industry development and special foreign trade growth. In the past five years, the lighting industry has continued to grow its exports, maintaining a growth rate of more than 15%. At the peak of 2012, it was close to 35%. This rapid growth is mainly due to the great demand for semiconductor lighting products in the international market. With the gradual acceptance of LED lighting products by consumers, the demand for such products in the international market has expanded, while the market for traditional electric light source products has been shrinking, and the export of electric light source products has continued to decline. In the first three quarters of 2015, the export volume of electric light source products decreased by 12.5% ​​year-on-year. Among them, the export volume of fluorescent light products fell by nearly 14% year-on-year, and the export volume decreased by more than 15%. The continued growth of the lighting industry relies mainly on the growth of foreign trade in LED lighting products. In the near term, the market for LED lighting products is still in a rising period. The demand for LED lighting products in the domestic and international markets will maintain a growing trend; but in the long run, it should also be noted that the long-life characteristics of LED lighting products and the light source. With the obvious trend of integrated development of lamps and lanterns, the speed of product update and elimination will be lower than that of traditional products, and the market share of replacement light source products will also change. Manufacturers should be fully prepared for this, and adjust production capacity and product structure. There should be sufficient judgment to prepare. 2. Is the competitiveness and comparative advantage still obvious? The lighting and lighting industry in China has been able to maintain a stable and rapid development trend in the past 20 years, mainly due to the relaxed industrial environment and significantly low provided for accelerating economic development since the reform and development. Labor cost advantage in industrialized countries. With the changes in social development and the continuous improvement of the country's environmental protection requirements, the tightening of land policies, labor costs continue to rise, the environmental management requirements of enterprises have increased, and the cost advantage of China's industry has gradually disappeared. LED lighting products obviously have the production and processing methods of electronic products in the production form, and China's lighting electrical industry is also transitioning from labor-intensive to automated production. Enterprises in the lighting and electrical industry should continuously increase investment in product research and development, design, intellectual property protection and application, brand promotion, cross-border cooperation, intelligent manufacturing, etc., and form new competitiveness as soon as possible, from low factor cost competition to brand, The transformation of the network and services will continue to maintain the international competitive advantage of enterprises and China's lighting industry. 3. Whether the international transfer trend of the industry shows that the processing trade is dominated by foreign-funded enterprises, and the general trade is dominated by domestic national enterprises. With the gradual weakening of the advantages of low labor costs, the ratio of processing trade to general trade has gradually changed. In the peak period of economic development in the past 20 years, processing trade accounted for more than 50% of total trade, and in the last two years, it has fallen to around 30%. At present, global industrial development presents several new characteristics. On the one hand, the process of re-industrialization in developed countries attracts high-end industries to return to the country; on the other hand, many labor-intensive industries are shifting to countries such as Southeast Asia, and foreign companies are moving to China. With less investment, the number of domestic and foreign investment in China has gradually leveled off. Specific to the lighting industry, under the influence of international projects promoting the use of efficient lighting products worldwide, with the advancement and development of LED lighting technology, many developing countries, especially Southeast Asian countries, use low labor costs and the development foundation of the previous electronics industry. Actively build the lighting industry in the country. Taking India as an example, it is actively cooperating with countries with strong lighting industry such as Japan, introducing production technology and enterprise management methods, improving product quality, and accelerating the establishment of national LED lighting product standard system, and is rapidly developing its own LED lighting industry. Although China's lighting industry still maintains an advantage in the international market, the international transfer trend of the industry has begun to appear. Relevant production enterprises should actively pay attention to changes in the foreign trade market and adjust product positioning and market layout. 4. Whether the government's support and policy environment are lenient From the perspective of the country's macro-control, foreign trade has entered a new normal from high-speed to medium-speed development. The new government has intensively introduced policies to boost the foreign trade situation and has successively introduced 13 foreign trade support policies. For example, the State Council issued the No. 83 document to propose trade facilitation measures; the State Council issued Circular No. 19 to propose an adjustment mechanism to promote export tax rebates; State Administration issued Circular No. 49 to encourage the import of advanced technology equipment and parts; The No. 1 document puts forward the opinions on accelerating the cultivation of foreign trade competitive advantages; State Administration issued the No. 55 proposal to improve the foreign trade environment, clean up the import and export link fees, etc., and also put forward opinions and suggestions on the development of new business models such as cross-border e-commerce. For the development of China's foreign trade, we have won a positive policy environment. Specific to the lighting electrical industry, with the global demand for high-efficiency lighting products, new high-efficiency lighting products and technologies represented by LED lighting are in the process of development. Therefore, in recent years, the lighting electrical industry is developing in science and technology. Promotion, foreign trade support and other aspects have won a series of preferential policies, lighting companies in the product tax rebate, technological transformation, scientific and technological innovation and other aspects can enjoy a more relaxed policy environment. In 2015, China Lighting Association cooperated with the Ministry of Commerce to complete the research on the competitiveness of key industries. The lighting electrical industry was listed as the 63 industries that the Ministry of Commerce focused on. With the implementation and implementation of supply-side management such as brand building and quality improvement, the industry and foreign trade development of the lighting electrical industry will still have a positive policy environment. 5. Is the world trade environment still convenient? Since 2008, G20 member states have issued more than 130 restrictive trade measures. In 2013, the trade protection measures adopted by the world's richest countries increased by 23% compared with 2003. Free trade such as TTP agreement. The signing of the agreement further weakens China's advantages in the global trade market. Different from the degree of global trade integration of the WTO, the current foreign trade facilitation has been replaced by fragmentation and tearing, the trade environment has deteriorated, trade protectionism has risen, and market demand has become a scarce resource. The global trade environment facing China's lighting industry is not optimistic. On the one hand, LED lighting products do not have a clear product classification code on a global scale, and global work on this issue will continue until 2022. Before the final classification results are achieved, the foreign trade market of LED lighting products will face certain difficulties and obstacles; on the other hand, the ongoing regional trade negotiations involve a list of products that contribute to the export situation of fluorescent products and LED lighting products. Whether it is included or not, China is also facing resistance from the EU, South America and other countries. This also confirms that developed countries and some developing countries are actively supporting and protecting their lighting industry. China's lighting products export enterprises should also pay attention to maintaining their rights and interests in the international market. The above five aspects briefly analyze the current development status of China's lighting electrical industry and the foreign trade development situation. Although the current export situation of the lighting electrical industry is slightly better than the whole country, the continuous decline in export growth in recent years also fully shows that the development of the industry is unlikely to remain at a high level forever. In the future, the development speed of the industry will shift to medium or even low speed. Faced with the complicated foreign trade situation, enterprises in the industry should actively adjust their development strategies and strive to seize the opportunities in the new round of industrial restructuring and global market changes.

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