1. theconsultants.net.in http://theconsultants.net.in/led-lighting-challenges/
Led Lighting – Challenges
Undoubtedly,led lighting industry is carrying vast business
potentials in india hence entire indian and global lighting
industry keeps their eyes to tap Indian Market business
opportunities.
Perhaps this was the reason why indian led lighting market
attracted various Indian,International & Niche players in this
industry.For example,Indian Lighting players are already
available in market like Philips,Osram,Bajaj etc.Some Players
out of Industry like Eveready,Wipro etc. Some New entrants
who were never in this field Like syska,Moser Baer etc. New International entrants Like Oppel From China. Many
More 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 was
forecasted.In fact Several Small Size units has stopped working and all big players are surviving only due to their
reserves.
Still Indian Led Lighting Industry is in growing phase. Remember ! Market have to attain it’s maturity to perform it
on it’s best economic potential level.For The same different transition phases have to cross by market and
players.Lighting Industry is facing critical latent challenges as per its growth rate. Following are certain major
challenges 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 bulk
manufacturer. While Making entry in Indian Led Market Most of companies tried to established their
manufacturing unit ( led Lighting Assembly Unit). Remember managing cost from china import is always a big
challenge to us becoz still in india chip / diode level bulk
manufacturing facilities are not available.Second,market
was not enough demanding to absorb the produced material.
All Small Big Manufacturing units putted less effort to develop
their market first.Hence due to insufficient demand from mass
market survival is tough.
Lack Of Core Led Lighting Manufacturing Technology :
In India Chip Or diode level manufacturing technology is still
not available. This micro level technology is quite costly and
is limited to certain countries & companies. Hence production
cost In India will be always high because for diode import and
for other key component we have to be dependent on
export.Further the skilled work force is also in poor condition in india while in china skilled work force is easily
available 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 deeply
impact the industry. Like BIS compulsion affected many manufacturing units. Upgrading to BIS level quality led
lighting manufacturing facilities is robust and expansive procedure and can become a challenge for small
players.Similarly Offering led Bulbs @ Rs 10 va delp programme also creates competition among private vs
government.

2. Consumer Diffusion Process:
One should not forget that consumer takes time to accept any newly introduced technology in market no matter
how beneficial it is ? Several stazes are involved in this process by which consumer passes and adopt any
product in mass.
Here marketer have to play a smart role and should be limiting their budget & activities as per diffusion process
becoz result on introductory level will be less while on maturity level sales from market will be on top.However all
players putting their all major efforts in current market. They should be wise enough that when they have to invest
and how much the have to invest in market.Still led lighting market players have to wait for mass adoption phase
of 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 not
triggering for Replacement of Traditional bulbs by led bulbs.Reason behind it is that Value addition or energy
saving & reduced electricity bill by Led Lighting is very small for domestic users and is not enough to kick the
relative benefit impact. However in project this saving can be clearly realised and experienced by consumers but
in domestic filed product satisfaction indicators gravity is not that much enough to develop a cue in consumers
mind.
Further Replacement process will be only when existing lighting systems completed t cycles in home i.e. when in
homes, installed bulb,cfl will stop working than consumer may think to replace it by led Bulb otherwise due to cost
factor 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 in
every small town.India, which carries 1.2 billion population,30 states,530 district,700 town and more than 6 lakhs
villages is a very vast territory and developing distribution infrastructure across india is biggest challenge for new
entrants. 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 which
will be ultimate factor for success or failure of any brand.For an example very much establishes companies like
HLL, Dabur etc are best examples in this regard , HLL market parlance is more than 6 million shops,Dabur is
approx 4 Million,Eveready market parlance is approx 3 million,while in lighting Industry Philips which is Leader is
catering only 1 Million Shops.

3. Nature Of Indian Market
Nature of indian market is quiet complex on the basis of different parameters. Based of geographical
expansion,availability of consumer class, Languages,Income level,Socio Economic parameters etc. organised vs
unorganised character etc etc commonly makes a very very complex market which become quite tough to
manage it by marketers.In such a diverse market environment marketers have to play very smartly to achieve
their goals.
Nature Of Led Lighting Market Competition:
Led Lighting Industry market nature is perhaps best example of complex market competition. First nature of led
lighting products makes itself a complex and hybrid product because some of feature of led lighting resembles
from 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 also
it behaves like consumer or fmcg product. It is clear that product nature of led lighting resembles with many
industries 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 dynamics
and behaviour of different industry is amalgamated.Deciding a unique market strategy is major challenge for
players in Indian Market.
Finally- no doubt that Led Lighting is next boom In Indian economy because all the traditional lighting equipment
must have to be replaced by led lighting. But managing this complex market effectively will be only mantra for
success.