World — 29 March 2011
China's manufacturers see bright future in lower-energy electrical devices

China's manufacturers see bright future in lower-energy electrical devices.

China suppliers of lighting and electricals are releasing more energy-efficient bulbs, tubes, LEDs and other devices to meet demand for environment-friendly fixtures and light sources across residential, commercial and industrial segments.

This is according to Global Sources’ (Nasdaq: GSOL) China Sourcing Report: Lighting & Electricals.

Manufacturers’ efforts toward efficiency enhancements have yielded a selection of bulbs, including LED-based models, boasting up to 30 percent energy savings. Further, manufacturers are expanding their products’ range of applications.

The Report covers the major products of China’s lighting and electricals industry, from light bulbs and tubes to indoor and outdoor lamps, and electrical fixtures and supplies. Findings in the Report show that even amid fierce competition, manufacturers are optimistic that their market footholds should grow stronger this year.

Publisher of the Report, Livia Yip, said: “As key economies around the world continue to recover, an overwhelming 93 percent of surveyed China suppliers anticipate double-digit increases in export sales in 2011. Some manufacturers project revenue expansion of greater than 30 percent. Growth is expected to be especially strong in LED bulbs, CFLs and fixtures compatible with these light sources, because several countries have already placed restrictions on incandescents.

“The EU, North America and the Asia-Pacific region are expected to continue being the main markets for China suppliers of lighting and related electrical devices. Business conditions in these markets are particularly favorable, with many countries there passing legislation that promotes energy-efficient technologies. Suppliers are also making efforts to cultivate emerging markets where consumer buying power is swelling such as South and Central America, Africa and the Middle East.”

Robust customs figures reflect the optimism across the industry. For the 11-month period ending November 2010, exports of China-made bulbs, lighting fixtures, ballasts and circuit breakers reached 21 billion units worth of $12.6 billion. This represented year-on-year increases of 26 percent and 35 percent, respectively.

Uptrend in prices as manufacturers manage cost challenges

China Sourcing Report: Lighting & Electricals reveals that 49 percent of featured suppliers intend to increase prices in the coming months to cover higher manufacturing outlay and currency exchange risks. Adjustments are expected to be limited to 10 percent, under efforts to maintain competitiveness.

On the other hand, 30 percent of companies actually plan to decrease prices to gain an edge. This comes despite cost-management challenges such as rising material and labor expenditure and the yuan’s appreciation against the US dollar, according to the Report.

To help offset higher expenses, manufacturers are boosting operational efficiency. Some LED lighting suppliers are even expanding into upstream sectors to control costs better. Companies across the industry are also installing more automatic equipment in their factories to improve operations.

Other industry trends indicated by China Sourcing Report: Lighting & Electricals include:

89% of manufacturers plan to increase capital expenditure in coming months to strengthen capability
72% of suppliers see either price competition or rising material costs as their main competitive challenge
Design copying and stricter overseas standards are also seen as hurdles
57% of companies are planning to target the EU as their main markets
Solar and wind power is a trend in outdoor lighting
Some manufacturers are switching from lead-acid batteries to NiCd or NiMH in response to environmental concerns

Supplier profiles, price forecasts, and the latest lighting and electricals for export

The 182-page China Sourcing Report: Lighting & Electricals provides detailed profiles of 99 suppliers with verified manufacturing and export credentials, plus contact details of 48 more suppliers. It also includes a Product Gallery featuring 276 of the most popular export models, with key specifications and full-color pictures.

The Report ‘s surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources websites, face-to-face events, trade magazines and research reports

China Sourcing Reports are part of Global Sources’ sourcing and product information services. These include Global Sources Online (, China Sourcing Fairs (, Private Sourcing Events ( and Global Sources monthly magazines (

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About Author

Richard Lee

Richard has been traveling since he took a year off from college, where he was doing a BA in Journalism. He traveled half the world, backpacking with his girlfriend (now his wife). They spent time in South America, Asia, Greece and much of Europe. After writing about his experiences for several airline and travel magazines, he never went back to college.

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