Status of LED Industry
(1) Russia’s energy consumption is very high compared with GDP, major power plants and power supply systems are relatively backward, and lack of energy-saving awareness Since the Soviet era, incandescent lamps have been used, and energy consumption is severe. In order to improve energy efficiency, the Russian government has introduced a bill to ban the use of incandescent lamps from 2014 and actively expand the use of energy-saving lamps such as LEDs. In this regard, the Russian LED lighting market has a lot of room for growth.
(2) Russian government regulations on traditional incandescent lamps
(3) Currently, due to LED lights and incandescent lamps There is still a very large price gap between them, and most households use incandescent lamps that are cheaper; however, the relevant laws have come into effect, and the demand for LED lamps is expected to increase gradually. But it takes time, and energy-saving products are being promoted in Russia to drive high-end products, such as LED lights. Most LED lights are currently being used in the field of road traffic equipment, and some are also used in urban lighting and car headlights.
(4) Due to the very developed advertising industry in Russia, the demand for LED in this field is very large. An LED signage is 20% to 30% cheaper than an ordinary neon sign. In particular, the color LED signage used in advertising is cheaper, and private enterprise LED color signage will increase. In addition, well-known automakers such as Ford, Toyota and Volkswagen have begun to build new plants in Russia, which has led to a gradual increase in demand for LED car lights. Russia hosted the World Cup in 2018, and the demand for LED lighting, display and other products is expected to further increase.
LED Certification Standards
GOST-R Certification Standards
(1) GOST-R certification
GOST-R certification is a mandatory certification mark for all products manufactured and sold in Russia. Products must be in accordance with GOST-R. The standards and regulations are designed to protect consumer rights. The Russian government announced that it will submit a GOST certificate for inspection when all products imported into Russia pass the customs.
(2) GOST-R certification summary
GOST-R certification was originally drafted by the Soviet Union in 1954, testing Standards and measuring instruments were updated in 1970 to establish the “Soviet Union Standard and Assessment Certification Committee”. In 1992, it enacted the “Russian Federal Consumer Protection Law” to protect national consumer rights; in 1993, Law of the Russian Federation on the Certification of Goods and Services was promulgated. law). The Russian Customs implements a deferred customs clearance policy for imported products that are not accompanied by a certification mark. Only when the relevant importer submits the relevant certification, customs clearance is allowed. From July 1st, the GOST certification mark must be attached to the imported product or the outer packaging. GOST-R certification is a mandatory certification standard for products to be introduced to the Russian market.
(3) GOST-R certification for product types
The goal of GOST-R is to get all products A mandatory certification, such as agricultural products, aquatic products and industrial products, and regulating the testing, inspection, application and certification of goods based on the impact of the product on the health and environment of consumers. LED lamps are in the field of electrical, electronic products and components.
(4) The need to obtain GOST-R certification
In Russia, the product does not have a GOST certification mark and certificate. It is impossible to sell through Russian customs and on the Russian market. If a non-conforming product without a certification mark is shipped to Russia, the manufacturer may be charged with a crime when found. Russian consumers prefer products with the GOST certification mark and only purchase this product.
(5) GOST-R Certification Program
The application form for the test must be sent to a recognized GOST certification test. Room, then the applicant submits a CB certification test report and applies for certification. When it passes the certification assessment, the CB certification body will issue a certificate to approve the certification use mark.
GOST-R has four certification bodies: SGS in Switzerland, DIN in Germany, TUV in Berlin and MERTOCONTROL in Hungary. TVU’s laboratories in Taichung, Shanghai, Hong Kong, China and Seoul, Korea were designated as Asian GOST Certification Testing Laboratories in 1994.
Russia’s LED market entry strategy
Russia promotes the growth of the LED industry through a phased approach to its LED lighting market. It will develop after 2012. The main countries that export LED products to Russia are China, Japan, Germany, the United States and Taiwan. Among them, the penetration rate of Chinese products in the Russian market is steadily rising, becoming the largest supplier of LED products in the region. The Russian market’s preference for Chinese LED products is due to the low price of Chinese products, coupled with the growing awareness of environmentally friendly consumption. In addition, since the 2018 World Cup will be held in RussiaOffice, the demand for Russian LED products is expected to grow further.
Considering the Russian characteristics and industrial characteristics, the Russian market entry strategy is as follows:
(1) Get GOST- R Certification
A prerequisite for entering the Russian market is GOST-R certification. Although Russian LED lamps have not yet established a comprehensive LED product standard, LED lamps must comply with safety and electromagnetic wave standards.
(2) Take active promotions
Chinese LED products occupy a dominant position in the Russian market, but Europe, America, and Japan Han LED gradually increases market influence with brand and high quality, and makes a lot of efforts in price. Therefore, in the Russian market, Chinese companies need to gradually establish a high-quality image of products and actively promote them.
(3) Establish various product types
The most demanding product in the Russian LED field is the LED display. Considering the strong demand for display screens and signage, there is also a great demand for monochrome LED products. At the same time, because there are many automobile factories in Russia, the demand for LED car lights is very large, so high-power LED products will have a rapid growth.
(4) Establish a good business relationship with the famous LED lamp manufacturers in Russia
If a company wants to launch A model of LED lights to the Russian market, it needs to have a good business relationship with the Russian ZERS company, the most famous LED lighting equipment supplier in Russia. Including a diverse product line covering residential and industrial lighting products. It will establish good partnerships with many other world lighting industry leaders. In addition, ZERS also has a stable and extensive supply chain of more than 30 cities including Russia and Ukraine. Establishing a good business relationship with ZERS will be of great help to enter the Russian market.
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