China Eliminating Filament Lamp Gradually Taiwanese Businessmen Vigorously Trying to Cooperate with Illumination Manufacturers

Recently, the Development and Reform Commission of Chinese Mainland released the “Course Map of Eliminating Filament Lamp in China”, and because of the huge demand in the LED illumination market of Chinese Mainland, Taiwanese Businessmen who intend to enter the market are vigorously trying to seek opportunities to cooperate with local illumination manufacturers.

In early 2007, the Australian Government was the first to announce to wholly eliminate filament lamp in the form of legislation, and then a dozen countries and regions released filament lamp eliminating plans in succession; Because many countries begin to forbid the use of or stop the production of filament lamp in 2010~2012, and European Union, Canada, Australia and Japan will begin to prohibit the production of filament lamp in 2012, PIDA estimated that, the price of LED bulb will rapidly drop in the near future, which is conducive to share the original filament lamp market.

As indicated by PIDA, though the government of Chinese Mainland hasn’t put forward the filament lamp eliminating plan as early as Europe, America, Japan and other countries, it still formally released the “Course Map of Eliminating Filament Lamp in China” in August 2011.

According to the course map, the filament lamp eliminating plan of Chinese Mainland will last 4~5 years. According to official statistics by Chinese Mainland, only in 2010, the amount of sales of filament lamp in Chinese Mainland reached up to 1.07 billion. Dealers think that, Taiwanese manufacturers will be the beneficiary ones undoubtedly in facing such a huge potential market, while dealers also have a worry that Chinese Mainland will be the most competitive and challenging market.

PIDA indicated that, the current price of an incandescent bulb in Chinese Mainland is only RMB 1~2 Yuan, and the price of energy-saving lamp bulb is RMB 10 Yuan around, but the average selling price of a 5W LED bulb of local brands in the market is still 20 times of that of an incandescent bulb and more than 4 times of an energy-saving lamp, so LED bulb is still a kind of higher-priced illumination product.

PIDA also indicated that, LED illumination products in Chinese Mainland are of variable quality, and consumers don’t have enough confidence in such products, so LED products are difficult to be popularized. However, after the execution for the policy of prohibiting the use of filament lamp in 2012, in the sight of the price of LED bulb declining for more than 30% a year, the market potential of LED products is still considerable in replacing the original market of filament lamp.