MBA Internship Report


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MBA Internship Report on "Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd."
This report is solely prepared by Md. Abdur Rakib that is me. It was prepared on the purpose of MBA Internship Program under MBA Program for the Marketing 14th Batch, University of Dhaka.

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MBA Internship Report

  1. 1. Internship Report On “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.” Based on the study of Marketing Internship Program
  2. 2. Internship Report On “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.” Based on the study of Marketing Internship Program Prepared for: Dr. Md. Morshed Hasan Khan Professor Department of Marketing Faculty of Business Studies University of Dhaka Prepared by: Md. Abdur Rakib Roll No: 375 Section: A Department of Marketing Batch: 14th (MBA) University of Dhaka Date of Submission: 22th August, 2013 eng.
  3. 3. Letter of Transmittal: 22th August, 2013 Dr. Md. Morshed Hasan Khan Professor Department of Marketing University of Dhaka Dear Sir, Here is the internship report on the chosen topic of “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.” (Based on the study of Marketing Internship Program) that you permitted me to conduct on the basis of the given proposal. Studying various marketing theories, approaches, strategies and methods & applying them during the internship program at New Nation Lighting Ltd. enriched my knowledge as well as experience. Besides, while conducting the market audit & doing the report, I have come to know about the lighting industry, various lighting solutions in Bangladesh, its prospect, market situation & marketing strategies which will help me further in my study. I appreciate your approval & assistance regarding my internship program, its topic & procedure. If you need any further research or assistance in the overview of my internship report regarding any issue, please ask me. Sincerely Yours, Md. Abdur Rakib MBA Roll No: 375 Section: A Department of Marketing (14th ) University of Dhaka
  4. 4. Letter of Declaration: 22th August, 2013 I, Md. Abdur Rakib, Roll No: 375, student of MBA of Department of Marketing, University of Dhaka, hereby declare that the internship report entitled “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.” submitted for the internship program as part of the MBA program is totally carried out by me. It has neither been prepared from any other reports submitted as internship report earlier nor is it copied from any published or written materials. Sincerely, ………………………… Md. Abdur Rakib MBA Roll No: 375 Section: A Department of Marketing (14th ) University of Dhaka
  5. 5. Letter of Authorization: 22th August, 2013 It gives me immense pleasure to certify that the projected internship report titled “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.” has been completed by Md. Abdur Rakib, Roll No: 375, student of MBA of Department of Marketing, University of Dhaka under my supervision and guidance. As far as I know, this is an internship report paper made as part of MBA program which has not been published in any journal or submitted to any institution or department for any degree or diploma. I do hereby accept it and fully recommend the internship report for evaluation. ………………………… Dr. Md. Morshed Hasan Khan Professor Department of Marketing University of Dhaka
  6. 6. Acknowledgement: At first, I would like to thank the Almighty Allah to complete my internship program as well as internship report. Then, I would like show my sincere gratitude to Dr. Md. Morshed Hasan Khan, Professor, Department of Marketing, University of Dhaka, my academic internship program supervisor for his well supervision and guidance. It has been a great support for me to have him as my supervisor. I am also thankful to him as he consulted with me gently and answered any of my queries with utmost patience and perseverance. I am thankful to Barrister Redwan Hossain, Managing Director, New Nation Lighting Ltd. & New Nation Solar Ltd. and Dr. Shariful Islam Dulu, CEO, Marktale BD & Brandcycle for helping & guiding me while doing the internship program. They supported me & taught me various strategies, theories, tactics & philosophies while doing internship program. They shared a lot of information and allowed me to know about lighting industry, its market & strategies. I am also thankful to Mr. Abu Bakar Siddique, Marketing Executive, New Nation Lighting Ltd. for assisting me with the market audit & report with guidelines and information.
  7. 7. Preface: Gathering knowledge from practical aspect is greatly different from theoretical knowledge through its operation, complexity and implementation. To justify the theoretical knowledge, practical orientation has great importance; internship program is a great opportunity to justify the theoretical knowledge in respect to the practical world. So, it is right decision for the Faculty of Business Studies, University of Dhaka to introduce this type of Internship program for the students of MBA program for better understanding and orientation with the practical job environment. The Internship program basically is an opportunity to minimize the lacuna between theoretical and practical knowledge. As an MBA student, it may be a privilege to get in touch with the orientation of an upcoming organization New Nation Lighting Ltd. from a reputed group, New Nation Group, which is one of the efficient and performing groups in our country. In New Nation Lighting Ltd., I have got the privilege to work as an Intern in the Marketing Department. In this report, I have tried my best to pursue the study successful for which I have been assigned. I must confess, there might be some mistakes, some adolescent efforts though. It will drive happiness if I find my whole efforts serve, at least, to some extent for which it has been prepared.
  8. 8. Table of Contents: No. Particulars Page No. 1 Executive Summary viii 2 Introduction 1-4 3 Background 2 4 Origin 2 5 Objective 3 6 Scope & Limitations: 3 7 Methodology 4 8 Market Study of the Lighting Industry in Bangladesh 5-49 9 Market of Lighting Industry around the World 6-15 10 Market of Lighting Industry in Bangladesh 16-22 11 LED Market around the World 24-34 12 LED Market Analysis 35-41 13 Energy Efficient Lights – An Overview & Its Prospect In Bangladesh 43-49 14 Marketing Strategy for New Nation Lighting Ltd. 50-68 15 Situation Analysis for New Nation Lighting Ltd. 51-65 16 About New Nation Group 51 17 New Nation Lighting Ltd. 52 18 Market Summary 53 19 Product Review 54 20 Competitive Review 56 21 Distribution 63 22 SWOT Analysis 64 23 Marketing Strategies of New Nation Lighting Ltd. 66-68 24 4P‟s & Marketing Mix 66 25 Conclusion 69 26 Appendix 70 27 References 71
  9. 9. Table of Figures: No. Particulars Page No. 1 The Global Lighting Market Trend 6 2 Contribution to Global GDP Growth 10 3 Contribution of Population Growth to Global GDP Growth 11 4 Dimension of Lighting Industry 12 5 Applications of Lighting Technologies 13 6 Other non-LED green technologies: 14 7 Graphical Presentation of Light Engineering Products Export 22 8 LED Manufacturing Roadmap In 2011 24 9 LED Lighting Market by Sector 26 10 General Lighting Market Trend by Sector 35 11 General Lighting Market Trend by Country/Region 41 12 3 of The Most Common Energy-Efficient Lighting Types 43 13 New Nation Group Logo 51 15 New Nation Lighting Ltd. Logo 52 16 Target Group of Customers for New Nation Lighting Ltd. 53 17 Main Competitors 56
  10. 10. Executive Summary: The global lighting market is currently undergoing a radical change, fueled by the exponential urban growth expected over the next decade, and the drive towards ever greater energy efficiency. Besides, the Light Engineering Sector (LES) has been recognized as an important sector of Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. The Government of Bangladesh has declared light engineering sector as one of the most priority sectors in the export policy 2009 - 2012. An estimate shows that there are about 40,000 light engineering industries in the country. Govt. incentives for the initiatives of any kind energy saving products are encouraged in the new Budget 2013-14. CFL & LED products are encouraged more to drive load shedding crisis away from Bangladesh & in this regard, govt. is giving new incentives. LED market is ongoing & has a great future not only in Bangladesh but also around the world. Its prospect in the global market as well as in the country is a great opportunity for the entrepreneurs. New Nation Lighting Ltd. from New Nation Group is going to take this opportunity & launch the organization to serve both household & business group of customers this year. Hence, market study & marketing strategies are being prepared to market the lighting products successfully. Initially, the products will be distributed in the Dhaka city only. Market audit has been conducted on customers, employees, retailers wholesalers & importers of lighting products to help preparing the marketing strategy & the market study successfully. New Nation Lighting Ltd. has a vision to lead the lighting market, specially the LED market in Bangladesh. I had the opportunity to work, study, research and make a report on this company during my internship program. This internship report has provided some interesting insight into the activities of lighting sector, light engineering market, customer development, branding strategies, marketing strategies, market research, field research and a lot about lighting products & market.
  11. 11. Introduction
  12. 12. Background: To learn the activities, emphasis, concepts & applications of marketing at home and abroad different enterprises & industries must be studied & reviewed closely. Lighting industry has a great impact on both the global & national economy. The lighting market is already mushrooming with a growth rate anticipated at almost 20% p.a. through to 2020. However, branding strategies, marketing strategies, marketing concepts, supply chain process, behavioral patterns of consumers, wholesalers & retailers impact on a business growth, logistics management, sustainable development issues, etc. can be learned from the lighting markets in Bangladesh, its products, its supply chain process & its consumption. In the study of the internship program the lighting products & market, especially the prospect of LED is given the core focus. It will be studied how is the market situation & lighting solutions in Bangladesh & around the world, the impact of LED & its prospect, evaluation & situation analysis & marketing strategy for launching New Nation Lighting Ltd. successfully. A well planned display of the market situation analysis & various marketing strategies to sustain in the competition as well as to improve the power consumption for Bangladeshi nation through increasing the use of LED will be reviewed. There is a very good prospect of lighting products especially LED in Bangladesh which will increase social as well as economical well being while at the same time reduce the environmental impacts and power consumption & thus driving the load shedding problem away from Bangladesh. Origin: As a part of MBA program internship report or research report is to be submitted by each & every student to the supervisor. Such report is helpful for the students to gain practical experience which will help not only to learn about making of a report but also to comprehend the idea, purpose and use of report in an organization. I have decided to undertake internship program under New Nation Lighting Ltd. which is an organization to deliver lighting solution to both the corporate & households. The topic of my internship report is based on the concept of marketing & relevant to the study of the marketing internship program. The topic of the report is “Market Study of the Lighting Industry in Bangladesh & Marketing Strategy for New Nation Lighting Ltd.”
  13. 13. Objective: General Objective: The main objective of this report is to know about and analyze the market of lighting industry in Bangladesh, prospect of lighting industry & marketing strategy for New Nation Lighting Ltd. Specific Objective:  To know about Lighting Industry around the World & in Bangladesh  To know about Lighting Solutions around the World & in Bangladesh  To know about the impact of L.E.D. Lighting around the World & in Bangladesh  Identifying Market Feasibility & Forecasting  Identifying Market Opportunity Analysis  Making Evaluations  Market Research  Preparing Situation Analysis for New Nation Lighting Ltd.  Preparing Marketing Strategy for New Nation Lighting Ltd. Scope & Limitations: Scope: This project paper covers not only the domestic but also the global market of lighting industry. It also includes the aspects of value chain process. While making the market audit & preparing the report I have experienced & gained knowledge about the lighting products & its market, its problem for different participants in the value chain process, its prospect, various marketing concepts & strategies used by importer, wholesalers, & retailers. Besides this, lighting products, brands, promotional tools, pricing, their usage etc. are also learnt.
  14. 14. Limitations: However, there are a few limitations. These are given as the following:  The main limitation of the study is to access to information which hampered to study some different aspects and analysis. Published data on related topic is not much available.  Some of the information is not suitable to classify or to use.  While conducting the market audit, it was difficult to collect accurate information from both wholesalers & retailers.  There is also a time limitation of conducting the research and prepare the internship report after completing the internship program.  Relevant information about the products, their price, usage & market was not given by the respondents. Methodology: To make the report more meaningful and presentable, two sources of data and information can be used. Both primary and secondary data sources have been used in this report. I have used both direct interview & observation method to collect the data from the importers, wholesalers & retailers of different markets in Mohammadpur area, Mirpur area & Nawabpur area. These markets represent about 50% of the lighting & electric market of Dhaka city. Data has been collected from about 100 stores from all these markets. By using this interview method with data sheet specific information & some personal information has been collected from the retailers, wholesalers, employees, importers, distributors and customers. Both qualitative and quantitative data have been collected. The research design will be descriptive in nature. Thus, I have collected my requisite data and information & analyzed systematically to turn them into useful information. However, the internship report will be discussed in some basic parts. Each of them will be illustrated in different points and subpoints as followed.
  15. 15. Market Study Of the Lighting Industry In Bangladesh
  16. 16. Market of Lighting Industry around the World: Overview of the Global Lighting Market: The global lighting market is currently undergoing a radical change, fueled by the exponential urban growth expected over the next decade, and the drive towards ever greater energy efficiency. To provide greater clarity on this huge and very complex market, McKinsey has conducted the first large-scale research of the global lighting industry. The findings provide a clear picture of the status quo and a forecast through 2020, covering major applications and technologies, including light sources and light fixtures. The global lighting market is expected to have revenues of around EUR 110 billion in 2020, with 6% and 3% p.a. growth from 2010 - 16 and 2016 - 20, respectively based on McKinsey‟s Global Lighting Market Model. The following figure contains a description of the assumptions underlying the market model. These figures demonstrate that the size of the global lighting market is similar to that of the global TV market. It is important to note that this is calculated based on the producer price. If the model‟s calculations were based on retail price instead, factoring in both the wholesaler‟s and retailer‟s value added, this would almost double its size, making it comparable to the entire personal computer industry, including both laptops and desktops. The global lighting market is growing steadily, with general lighting being the major market segment
  17. 17. Total general lighting market (new fixture installation market with light sources and lighting system control components [full value chain] and light source replacement market), automotive lighting (new fixture installations and light source replacement), and backlighting (light source only: CCFL and LED package) Despite its vast size, the lighting market has received little attention in the past. Previous market reports have covered portions of the industry, such as light sources or LED packages. Very few have presented a comprehensive perspective that also includes the lighting fixture market. This market report attempts to develop a holistic overview of the entire lighting market from several angles, including different applications, technologies, and geographies, encompassing both light sources and lighting fixtures. The scope of McKinsey‟s market model includes general lighting at the light source, fixture and systems control component levels, automotive light sources and fixtures, and backlighting at the light source level. The fixture market size also covers electrical components such as ballasts. Light sources are defined as bulbs/tubes in traditional lighting, and as LED modules/light engines and LED lamps in LED lighting. General lighting is the dominant market, with total market revenues of approximately EUR 52 billion in 2010, which represents close to a 75% share of the total lighting market. This is expected to rise to some EUR 88 billion by 2020 – approximately 80 percent of the total lighting market. The general lighting market has two key drivers. The strong growth in construction investment in emerging countries is one. The second is the greater penetration of higher priced light source technology, including LED, which raises the average price of lighting products. The calculations of market size do not include OLED for general lighting, as the extent to which OLED will penetrate the general lighting market is still unclear. The price of OLEDs is higher, while their lifetime is shorter than non-organic LED lighting. Furthermore, OLED panels have yet to be manufactured in large sizes. Additional markets may open up for OLED in general lighting in the future when OLED overcomes issues such as its lifetime, especially for decorative lighting purposes. This would increase market size estimates even further.
  18. 18. The automotive lighting market is steadily growing. The 2010 market size is estimated at EUR 13 billion, representing approximately 20% of the total lighting market. This is expected to climb to EUR 18 billion by 2020. More than 90% of automotive lighting is related to exterior lighting, with the major application being the headlamp market accounting for more than 70% of total automotive lighting. The trajectory of the automotive lighting market is similar to that of general lighting as its growth drivers are comparable: strong growth of the vehicle market in emerging countries, and LED penetration. Another trend in the automotive lighting market is the shift from light source replacement to new lighting installation business. The driver for this is the evolution towards longer light source lifetimes, leading to a decrease in the replacement light source market. The backlighting market is estimated to have had revenues of EUR 4 billion in 2010 at the light source level. This represents 6% of the total lighting market. This market report includes backlighting because the high penetration of LED in this market will greatly influence LED prices in other sectors, such as general lighting. The light sources analyzed were LED and CCFL (cold cathode fluorescent lamp). Currently, LED is already a major light source for small to midsize screen backlights, such as for mobile devices, laptops, monitors, and small-screen LCD TVs. It is also penetrating larger-size screen LCD TVs, where CCFL technology has mostly been used. OLED displays are already penetrating the mobile/ smart phone market, expanding OLED‟s market share as it provides higher resolution than LCD displays. Even in large-screen TVs, OLEDs are expected to replace LEDs due to the aggressive investments of Korean companies. Our market report does not include the OLED market size in its model as OLED displays use self-light-emitting technology without the need for backlighting, eliminating the concept of a light source. The backlighting market (excluding OLED displays) will remain stable, with revenues of EUR 4 billion in 2016. The market is likely to decline after that as LED market share hits a ceiling, with brighter LEDs leading to a decreasing number of LEDs per TV, and OLED beginning to penetrate larger-screen TVs. This report does not include other lighting applications within this sector, such as signal, sign display or medical lighting, machine vision lighting, or light sources for projectors, optical devices, sensors as well as other electronics equipment. These markets are relatively small as
  19. 19. only the light source market can be included in these applications by their nature. They account for a total market share of fewer than 10% and this is expected to remain the case. Growth driven by various megatrends – especially energy efficiency: A number of megatrends are propelling the growth of the lighting market. One major trend is population growth, especially in developing countries. Secondly, rising incomes increase the amounts consumers are willing to spend on lighting. The third is urbanization, with usage of light being larger in urbanized areas than in rural areas. Lastly, due to concerns about scarce resources and climate change, demand for energy-efficient products has now become a global movement that is bringing about a gradual shift to higher prices in the lighting market. Global Population Growth and Rising Incomes: The world‟s population is expected to grow from 6.9 billion in 2010 to 7.7 billion in 2020. This is a fundamental driver for growing lighting demand, both in residential but also in all other areas of lighting. The population growth mainly originates from Asia, with a 78% share in the 0.8 billion additional population between 2010 and 2020. The resulting shift in gravity will also be reflected in the geographic distribution of the lighting market and the corresponding need for products customized for these high growth markets. Urbanization: The global economy is expected to grow by 3-4% p.a. from 2010 to 2020 in real terms. The major growth will be driven by initiatives in cities, which directly impact lighting market demand, especially general lighting. Recent McKinsey Global Institute (MGI) research has revealed that 600 urban centers – covering a fifth of the world‟s population – are expected to account for around 60% of worldwide GDP growth in 2025. Urbanized cities use more light than rural areas, so the urbanization trend will be a strong driver of light usage going forward.
  20. 20. Global 600 cities will contribute 60 percent of global growth by 2025  Predicted real exchange rate  Smallest cities in terms of 2007 population has 208,000 inhabitants (in South Korea)  Cities that do not belong to the City 600; small cities and towns and rural areas As for the population growth, the center of gravity for cities is shifting to developing regions. In 2007, the 380 developed region cities in the top 600 (by GDP) accounted for 50 percent of global GDP. By 2025, 136 new cities are expected to enter the top 600, all of them from the developing world, and overwhelmingly from China (100 new cities). These include cities such as Haerbin, Shantou, and Guiyang. But China is not the only economy that features in the shifting urban landscape. India will number 13 newcomers, including Hyderabad and Surat. Latin America will be the source of eight cities, including Cancun and Barranquilla. Rapid growth in emerging cities is largely due to rising per capita GDP, whose contribution to GDP growth is much higher than that of population growth.
  21. 21. City growth is mainly driven by the developing world  Includes cities in China (including Hong Kong and Macau) and Taiwan  Includes cities in Afghanistan, Bangladesh, India, Pakistan, and Sri Lanka  Includes cities in Cambodia, Indonesia, Laos, Malaysia, Myanmar, P.N.Guinea, Philippines, Singapore, Thailand, and Vietnam The automotive sector will expand as a result of this growth in the global economy, directly affecting the automotive lighting market. China has been the largest automotive vehicle market in the world since 2009, and the growth of automotive markets in other developing countries is higher than that in developed countries (approx. 6% p.a. in developing countries compared to approx. 2 percent p.a. in developed countries from 2010 - 20 on a unit basis.) However, the trend in automotive sales is moving towards smaller and lower price segments, which have a less pronounced effect on the automotive lighting market on a value basis.
  22. 22. High fragmentation: lighting used in many different ways In contrast to typical electronics products, the lighting industry is very fragmented and complex, as lighting is used in so many different ways. It needs to be viewed along four dimensions, all of which intersect, producing multiple variations. Dimensions of the Lighting Industry:  General lighting: residential, office, shop, hospitality, outdoor, industrial, architectural  Automotive: headlamps, DRLs, sidelights, rear lights, interior, etc.  Backlighting: TVs, monitors, laptops, handhelds  Other industrials: signal lighting, sign display lighting, medical lighting, projectors, machine vision lighting, etc. Traditional Lighting Bulbs Tubes Modern Lighting Automotive Lighting Backlighting Other Industrials
  23. 23. Applications (Technologies): Geographies  Europe, North America, South America, Asia Pacific, Middle East, Africa  Developed countries (OECD), developing countries (non-OECD) End-market structure:  Building owners, tenants  Lighting professionals: architects, lighting designers, interior designers, electrical engineers, general contractors, electrical contractors, electrical wholesalers, etc. Due to the broad range of different lighting products, green is defined per product group in line with typical energy efficiency standards within the industry, e.g., Energy Star for CFL light bulbs. At the minimum, all green products need to provide a 20% energy efficiency improvement vs. comparable non-green products Non-eco- friendly Halogen HID (CCG1- Based) LFL (CCG1- Based) Non-green traditional Eco-friendly Halogen HID (Ecg3- Based) LFL (Ecg3- Based) CFL CCFL Green traditional LED Lamps LED Light Engines OLED Infrared Laser Solid-state lighting
  24. 24. Technologies Transitioning: Energy Efficiency Rising Throughout the Lighting Sector The current major light source on a unit basis per year (in terms of sales) is incandescent, which has over 52 percent of the general lighting market (12 percent based on value). The second largest light source on a unit basis is the fluorescent lamp, which is already the largest based on value, with a share of over 50 percent. There are two fluorescent types: 1. The linear fluorescent lamp (LFL), which is mainly used in the office segment, and 2. The compact fluorescent lamp (CFL), which is used as a replacement light source for incandescent bulbs. LFL‟s current market share is around 16 percent on a unit basis (19% based on value), while CFL‟s is 17 percent (31% by value). CFL‟s growth has been significant over the past few years as many governments have been supporting CFL to restrict incandescent usage. Other light sources are halogen and HID. Other non-LED green technologies: Other non-LED green technologies will play an important role in the transition to LEDs. Light source technology market share trend in general lighting (lamp level)
  25. 25. Lighting in the Street of Bangladesh
  26. 26. Market of Lighting Industry in Bangladesh: The Light Engineering Sector (LES) has been recognized as an important sector of Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. Light Engineering Industries (LEIs) has been sprouted in the late eighties and the sector saw tremendous growth since 1985. During late eighties, Government initiated 'Dholaikhal Subcontracting Project' under which public sector enterprises were advised to procure such products from local light engineering workshop. According to the estimate, there are about 40,000 light engineering workshops/enterprises operating all over the country in which around 0.8 million semi-skilled, skilled and technically educated people and innovative entrepreneurs are actively engaged. Most of the light engineering workshops are micro and small, self financed and employing about 05 (five) persons and managed by the owners. A recent study on light engineering industries by IFC-SEDF estimates that annual turnover is US$ 1600 million of which Import substitute products is around US$ 200 million. LEIs are supplying the basic elements of an industry, like capital machinery, spare parts and accessories with high potential to export in international market. Beside these, LEIs are now also producing various kinds of import substitute products and services mostly for the domestic market. The products of light engineering sectors are: automobile spares, railway engine & rail line spares, bicycle & cycle rickshaw, Iron chain, machine tools, jute & textile machines and spares, chemical industry machines and spares, sugar and food industry machines & spares, engineering & metal industry machines and spares, marine and ship industry spares, agricultural machines, accessories and spares, plastic and related product machines and spares, electrical goods and accessories, etc. Prior light engineering sector did not receive policy support to ensure their sustainable growth and development. Problems accumulated in these industries hindering the desired pace of growth and diversification of products. Time has come to treat the light engineering industries as on of the important potential sector having comparative/competitive advantage over other sectors. It is believed that the growth and diversification of light engineering products largely depends on the policy support, public-private joint initiative for institutional and financial support, availability of technical and business information, innovation and sustainable development of technology and
  27. 27. related products, capacity development of industries, research and development facilities and removal of other barriers relating to the engineering sector. Industry Situation: The light engineering industry in Bangladesh continues to grow each year. This labor-intensive sector produces a diverse range of items, including import substitute machinery spares, plant machineries, small tools, toys, consumer items and paper products for the domestic market. Most of these enterprises are located in and around Dhaka metropolis. Entrepreneurs from China, Japan and Korea have taken advantage of Bangladesh's cheap and easily trainable labor and its infrastructure facilities to manufacture products for the export market. Sector Highlights: Thriving in this sector are machinery parts and consumer items.  Increasingly affluent middle class creating demand for consumer durables.  About 40,000 small scale light engineering enterprises existing over the country.  Export-oriented production has experienced strong growth in past few years.  Currently about 10,000 types of different items are manufactured for the local industry.  As demand grows for engineering and electronic goods, so does demand for light engineering products.  Government provides cash incentive facilities to exporters of value-added light engineering products. Current Status of Light Engineering Sector in Bangladesh: The Light Engineering Sector (LES) that draws the least attention of the policymakers has emerged as a potential cost cutting sector by producing at least 50% substitutes of imported items in the country. This important sub-sector is now providing critical support to industrial, agricultural and construction sectors by manufacturing a wide range of spare parts, castings, moulds and dices, oil and gas pipeline fittings and light machinery, as well as repairing those.
  28. 28. Sector players claim that electrical goods like switch, socket, light shed, channel, cables and electrical fans, generator, which are manufactured by the LES are now meeting 48% to 52% of the country's demands, which was earlier met through import. Export growth was estimated at 30%. The light engineering sector as 'the mother of all sectors,' because it provides backup support to cement, paper, jute, textile, sugar, food processing, railway, shipping, garments capital machineries by repairing and maintaining those. A recent study conducted by International Finance Corporation (IFC) in partnership with UK Department for International Development and Norwegian government shows that LES has in its employment 6,00,000 people involved in 50,000 micro enterprises and 10,000 Small and Medium Enterprises. Another study conducted by Bangladesh University of Engineering and Technology however, estimates that LES comprises of around 40,000 enterprises employing around 8,00,000 people. Aims & Objectives of LES: The light engineering products primarily to meet the domestic demand as import substitute and then for export market as well if appropriate guidance and supports could be provided to the industry. This needs special attention to the capacity building activities of supply side constraints in respect of improving human resources, acquiring appropriate technology, information about markets, products and technology, attaining quality and standards, policy advocacy, etc. Thus the prime objective of forming the Council is to promote the sector to achieve competency in the local and global context as well as to help the industry building capacities in the field of human resources and acquiring technologies. The specific objectives of the Council are:  To promote and facilitate export of light engineering products and services  To encourage and assist in balanced development of light engineering product and services  To set up a common facility center for testing, training, standardization and certification of light engineering products and services  To create positive attitude among policy planners, decision makers and stakeholders regarding the light engineering sector
  29. 29.  To promote and disseminate useful knowledge on light engineering product and services in particular, so as to enhance the contribution of these to the growth and development of the national economy  To develop linkage with different Institutions/Enterprises involved in promoting participation, both national and international and to help in the development of human resources required by the light engineering industries. About LEPBPC: The Light Engineering Sector (LES) has been recognized as an important sector of Bangladesh which has potency to play a significant role in the economic development along with a vast scope of employment generation. With a view to promote the light engineering sector of the country, Ministry of Commerce has formed a Council on March 04, 2004 entitled Light Engineering Product Business Promotion Council (LEPBPC) with the partnership of public and private sector. The honorable secretary, Ministry of Commerce is the ex-officio Chairman of the Council, while Vice Chairman of Export Promotion Bureau (EPB) is the 1st Vice Chairman and President, Bangladesh Engineering Industry Owner's Association (BEIOA) is the 2nd Vice Chairman of the 25-members Council. The other government offices and member/associations related to LES is the member of the council. The Light Engineering Sector (LES) is recognized as the mother industry of all other industries as they supply the basic elements of an industry, like capital machinery, spare parts and accessories with high potentiality to export in international market. Beside these, LES are now producing various kinds of import substitute products and services mostly for the domestic market. With the multifaceted backdrop of LES, few of the products of it are currently exported in different countries with immense global competition. The growth and diversification of light engineering products largely depends on the policy support, public-private jointly initiative for institutional and financial support, availability of technical and business information, innovation and sustainable development of technology and related products, capacity development of industries, research and development facilities and removal of other barriers relating to the engineering sector.
  30. 30. In the present context of globalization, the Ministry of Commerce has taken initiative as a part of the development and diversification strategy to support LES with the objective to increase industrial base and volume of foreign trade. The light engineering industries play a vital role in the socio-economic development of the Bangladesh. This sector is not only producing import substitute goods but also facilitating employment opportunities for the country. An Abridged Overview of Bangladesh Light Engineering Product Sector:  Light Engineering Sector (LES) have emerged as the cornerstone of development providing the platform for industrial growth, enhancement of trade and economic prosperity. The light engineering industries have potency to play a significant role in technological and economical development along with a vast scope of employment generation.  The Government of Bangladesh has declared light engineering sector as one of the most priority sector in the export policy 2009 - 2012.  Light Engineering Sector is classified as a sub-sector of Small & Medium Enterprises (SMEs). An estimate shows that there are about 40,000 light engineering industries in the country. Most of the industries are located at Dhaka, Chittagong, Narayangong, Bogra, Gazipur, Kishorganj, and other location of the country. According to the estimate around 7 million technically educated and skilled people and innovative entrepreneurs are actively engaged with the sector.  In Bangladesh, all over 90% of light engineering industries are serving the local needs of the people. There are strong backward and forward linkages between the light engineering industries and other sector (such as agriculture, automobile, and transportation) of the economy in Bangladesh.  There are about 1,200 light engineering industries presently enlisted in Bangladesh Small & Cottage Industries Corporation (BSCIC) who are supplying various type of products (such as spare parts, equipment, capital machinery) under sub contacting scheme.  The product types of light engineering sector are: Automobile spare parts, Railway engine & rail line spare parts, Bicycle & cycle rickshaw, Machine tools, Jute & Textiles machines and spare parts, Chemical industries machines and spare parts, Sugar and food industries machines & spare parts, Engineering & metal industries spare parts, Ship
  31. 31. industries spare parts, Agricultural machines accessories and spare parts. The light engineering industries of Bangladesh is currently producing a total 3,815 types of quality machinery, spares and accessories.  The consumer of light engineering products and services are both the public and private sector. Major public sector consumers are: Sugar and Food Industries Corporation, Bangladesh Chemical Industries Corporation, Bangladesh Railway, BRTA, BRTC, BIWTA, BIWTC, Port Authority, WASA, T&T, PDB, Public Health Engineering, Civil Aviation, Bangladesh Biman. The private sector is also the major consumer of the light engineering products.  A number of potential export quality light engineering products are going to foreign market on direct and subcontracting means. These are spare parts of Paper & Cement mills, Bicycle, Fancy light fitting, Construction equipment, Battery, Voltage stabilizer, Iron chain, Cast iron article, Carbon rod, Automobile spares, Electronics items, and Stainless steel wares.  The infrastructure facilities (such as electricity, gas, transportation, and telecommunication) and labor cost are comparatively lesser than other countries as such the sector shows high potentiality of growth and development. Export Scenario of Light Engineering Product Sector: Million (US$) Sector 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 (July-January) LEPBPC 222.65 190.7 311.1 309.55 199 A. Bicycle 64.28 84.54 110.86 99.83 54.74 B. Engineering Products 155.4 104.94 174.12 173.69 114.94 C. Electronics & Electrical Products 2.97 1.19 26.11 36.03 29.29 Source: Export Promotion Bureau of Bangladesh (EPB)
  32. 32. Light Engineering Product Performance: Graphical Presentation of Light Engineering Products Export (Volume in US$)
  33. 33. LED Light: Going to Lead the Future Lighting Market
  34. 34. LED Market around the World: The lighting industry has been a conservative and relatively stable industry compared to other electronics industries. Human beings used fire as a light source for tens of thousands of years until the revolutionary invention of the light bulb in the 1870s. The fluorescent light bulb, another radical invention in the 1920s, proved more efficient and has a longer lifespan. LEDs evolved in the 1960s using the light emission properties of certain semiconductor materials. The full color spectrum they now offer combined with their low input power and improving price levels make them the clear fourth-generation candidate, set to disrupt the entire lighting market. Prices Falling: Dramatic Cost Reduction Trend Theoretically, LEDs could become much cheaper than any other traditional lighting currently in use. According to the US Department of Energy‟s 2011 solid-state lighting manufacturing roadmap, the prices of LED OEM lamps and LED packages are predicted to drop by around 30 percent p.a. from 2010 - 15, and by 10 – 15% p.a. from 2015 - 20. Extrapolating these figures means they would be a fifth of their 2010 price by 2015, and a 10th of the 2010 price by 2020. The price forecast for a warm-color LED package for 2015 was USD 4 per kilolumen in 2009 and USD 3 per kilolumen in 2010, falling to USD 2 per kilolumen in the 2011 version of the DOE roadmap LED Manufacturing Roadmap In 2011
  35. 35. There are two key drivers for reducing LED lighting costs. The first is improving the brightness of light generated (measured in lumen) in terms of the power consumed (measured in watt). This is commonly referred to as luminous efficacy (efficiency). The second is reducing production costs per LED product. Several activities are under way to improve both of these dimensions. Improving Luminous Efficacy (Less Energy Use to Achieve the Same Brightness): There are various opportunities to improve luminous efficacy along the value chain. At an epitaxial level, one of the key drivers is greater sophistication of the critical production step, MOCVD (metal organic chemical vapor deposition), in which the light-emitting layers are created. Options include more efficient production handling and better choice of layer material, including the substrate material onto which the light-emitting layers are deposited. At a chip level, multiple activities to enhance luminous efficacy are currently underway, such as the recent introduction of laser liftoff/flip-chip technology and surface roughening, both of which increase the amount of light leaving the chip rather than being absorbed inside. Initiatives are being taken to increase the amount of light reaching the human eye at the package level, too. These range from changing the optical material or adding a remote phosphor light source to using reflectors. At a module level, LED driver design will continuously be refined to improve electrical efficiency, while enhancing secondary optics can reduce light loss. Lower Production Costs (Reduce Production Costs Per Product): The second OEM-related LED cost reduction lever, declining production costs, is being driven by a wide range of activities that both reduce material costs and improve production efficiency. Material costs are falling as the LED market expands due to economies of scale. Choice of material is another driver. One of the most expensive components of LED material costs today is the sapphire substrate. Using silicon (as in most other semiconductor applications) instead of sapphire substrate can significantly reduce substrate costs. Downsizing the LED package and thus the size of the entire light source (and potentially the fixture) is further reducing material costs. Another leverage point is that currently LED is still using 2- to 4-inch wafers, while other areas of the semiconductor industry are using 12-inch wafers, which can greatly improve the throughput of the MOCVD process. Integration of production steps – as is common in the
  36. 36. semiconductor industry – is another major cost improvement option. For example, technologies are being explored that integrate the package and module step (chip on board). Penetration Rising: Growth of Over 30% P.A.: The 2010 figure for the size of the LED lighting market in the general lighting, automotive lighting, and backlight sectors is estimated at around EUR 7 billion. This amounts to approximately 10% of the entire lighting market on a value basis. The McKinsey model calculates that LED lighting is expected to grow at a rate of around 35 percent p.a. from 2010 - 16, leading to a market share of approximately 40% by 2016, with revenues of some EUR 40 billion. After that, the growth is predicted to slow down to less than 15% p.a. from 2016 - 20, resulting in an LED market share of around 60% in 2020 and revenues of approximately EUR 65 billion. LED penetrated the backlight market first and has now also made inroads into the automotive sector. However, the major market for LED going forward is expected to shift towards general lighting. LED Lighting Market Is Expected To Increase Very Rapidly In the Coming 10 Years Total general lighting market (new fixture installation market with light sources & lighting system control components & light source replacement market), automotive lighting (new fixture installations & light source replacement), and backlighting (light source only: CCFL & LED)
  37. 37. Successful Deployment in the Backlight Market since the Late 1990s: The LED market began opening up in the 1960s with low-brightness red indicators in several electronics products. As the technology developed, LED expanded into higher brightness and white-color applications, starting with mobile backlighting (around 1995) and backlighting for laptops (around 2005), gradually expanding to larger-screen backlighting (from 2009) and other brighter white-color applications. LED market share in the backlighting market was already 50 percent in 2010, thanks to aggressive investments by Korean and Taiwanese panel makers. The share of LED in the backlighting market is expected to peak soon, at close to 100 percent in 2016. The market is then likely to shift from LCD TV to OLED TV, which does not use backlighting. Growing Use in the Automotive Sector: The 2010 market share of LED in the automotive sector was 12 percent, largely due to red LED applications, such as indicators and brake lights. LEDs are increasingly being used in DRLs (daytime running lamps), which are mandated for new car production in the EU from 2011 - 12, and which OEMs are now also using as a competitive edge in their design, such as in the Audi A8. LED also aims to penetrate the headlamp market, but technology barriers persist in this field as LED is still very expensive for ultra-high brightness applications: halogen and high-intensity discharge lamps (HID) have advantages at lower costs. General Lighting to Be the Key Target: LED now penetrates general lighting, which is the mainstream of the lighting market. LED‟s market share was still low in 2010, at 7 percent. The key reason is that LED is still expensive for high-brightness applications. However, RGB color LEDs are already well accepted in architectural lighting as they have clear benefits over traditional lighting. White LED lighting is currently starting to ramp up, too. As a result of substantial cost reductions and the global movement toward energy savings, LED‟s
  38. 38. share of the general lighting market is expected to be 43% by 2016 and 64% by 2020. The details are covered in the next chapter. Value Chain Transforming: Disruption of Industry Structures: The penetration of LED technology just described is driving a far-reaching change to the industry‟s structure. This transformation is affecting every stage of the value chain, from upstream, where altered production methods are driving new capabilities and entrants, to downstream, where the fixtures market is expanding in multiple directions. Upstream industry is experiencing a radical shift, with LED expected to capture a huge share of general lighting. LED production methods are very different from those used for traditional lamps, where electrical filaments or plasma with bulky glass covers are used. This is leading to the emergence of an entirely new industry and the upheaval of traditional industry structures. Restricted to red and green low-brightness LEDs, the market was historically a very niche industry. The invention of blue LEDs in 1995 has led to a rapidly changing landscape over the last 15 years. From 1995 to 2005, the high-brightness white LED upstream industry was dominated by a handful of companies protected by their patents, following intensive IP-related battles between them. From 2005 to 2010, the major LED application was backlighting for mobiles and laptops, necessitating continuous cost reduction. Several Taiwanese and Korean companies entered this market via licensing from the Big 5, gaining market share with their low-cost production capabilities. In 2010, as LED brightness increased and its costs started to fall, LED backlighting was introduced for large-screen LCD TVs. The top LCD panel manufacturers have begun to heavily invest in the upstream LED market, expecting high captive demand for LCD panels. They swiftly bought up MOCVDs and gained a large share of the LED upstream market within a very short time period. Most upstream companies are now aiming to capture the general lighting opportunity as LED upstream business in general lighting is expected to be significant. This is especially true once the LED package market in LCD TV backlighting stagnates, epi chip/package production capacity will shift to general lighting. Currently incumbents are at an advantage in the general
  39. 39. lighting market because high-power LED still needs more sophisticated technology and a wider variety of application know-how than backlighting. However, emerging multichip/chip-on-board technologies are opening up opportunities for start-ups and semiconductor manufacturers. Midstream, LED is set to become the next standard in the general lighting light source market. In the traditional light source market, the three main players have maintained a significant share of 60 to 70 percent globally for several decades, despite partially outsourcing production to Chinese manufacturers. Light source standards for light bulbs/tubes in this field are already well established, meaning the light sources produced by different companies are basically interchangeable. Traditional light sources have become a commodity – a volume game product – as a result, and the market tends to be oligopolistic, as is common in the world of commodities (whether the automotive tire industry, glass industry, or semiconductor DRAM industry). LED lighting is uprooting these traditions on multiple fronts and realigning thinking on standards. LED As A Light Source Is Altering Traditional Standards: LED lighting is still just emerging as a new general lighting light source, but it is already clear that its profile will differ greatly from that of the traditional light source industry. The functionality of an LED module (light engine) is similar to that of lamps (light bulbs/tubes) in traditional lighting. Despite this, a standard for LED modules has not yet been set, although the LED retrofitting market for light bulbs and tubes is currently adapting to traditional light source standards as a default. This lack of standards in LED is due to LED‟s new value proposition, such as its long life and the compact/directional light source it offers. As a light source, an LED may have an even longer lifespan than the lighting fixture used for it, eliminating the need for light source replacement and leading to integration of fixture and light source. In traditional lighting, design customization is mainly for fixture designs that use a standard light bulb/tube, but fixtures can now be designed more flexibly using a compact/directional light source. New Standards Will Depend On The Directions The Industry Takes: Discussions on LED general lighting standardization have been initiated by several organizations (such as the Zhaga Consortium). The lack of standards is creating inefficiency in the industry. For example, module/light engine manufacturers cannot enjoy economies of scale, and fixture and module/light engine designers/engineers cannot design their products smoothly: extensive
  40. 40. coordination among various parts suppliers are required. For example, Zhaga‟s objective is to define a light engine interface – differentiating light engine and module – from four different physical perspectives: mechanical, thermal, electrical, and photometric. Currently, the Zhaga Consortium has 140 members and is holding very active discussions on light engine standardization. The degree of standardization will likely vary depending on the application. One model is that light engines are standardized products, where fixture designs are adjusted to the commonly available LED light engines, and end users can replace LED light engines themselves. The alternative is that light engines will be individually customized towards lighting fixture designs provided by the fixture manufacturers. In this scenario, the light engine business would be similar to today‟s consumer electronics business: light engine makers would need to align to fixture manufacturers‟ design activities. Downstream companies are exploring new growth opportunities beyond their current business domains. Many lighting companies, especially fixture companies, are seeking new growth opportunities through value chain expansion by entering the systems/solutions businesses, as the advent of LED and the recent energy efficiency movement is creating a new lighting systems/solutions market. Currently the lighting fixture market is regionally/locally fragmented. Some leading companies are also seeking growth opportunities through geographical expansion. However, major consolidation is unlikely, due to the underlying fragmentation of the market. Systems/Solutions Are A New Downstream Business Opportunity: The systems/ solutions arena is expected to be a large market in the future as new solutions will be created for every type of application due to the advent of the new light source, LED. Current revenues in the lighting systems control component market (excluding building systems, etc.) are roughly estimated at EUR 2 billion. This is expected to grow to EUR 4 billion by 2016 and EUR 7 billion by 2020. This calculation does not include new applications such as biolight systems, which represent upside potential in addition to the market growth figures presented in this report.
  41. 41. Global Perspective of LED Market: Calculated based on number of light sources (lamps), incl. both new fixture installations and replacements; incl. LED modules/light engines. Total lamp and LED light engine market (incl. LED module) has a 12% market share (10% by value), but usage is concentrated in Europe and the US, where awareness of color quality is very high. HID, which is the most recent technology apart from LED, has a 2 percent market share (14% by value). Although incandescent is today‟s key light source on a unit basis, it has the lowest energy efficiency. LED has a much better efficiency of 60 to 120 lumen per watt (at lighting fixture/lamp level) than incandescent at 10 to 19 lumen per watt, and continues to improve rapidly. However, it is not just LED that has better efficiency. Other non-LED technologies that have greater efficiency than incandescent are CFL at 40 to 70 lumen per watt, LFL at 35 to 87 lumen per watt (T8, for example), and HID at 50 to 115 lumen per watt (e.g., metal halide). Moreover, all traditional lighting technologies are improving their energy saving features as energy saving consciousness increases globally – and to compete with LED – by increasing their efficiency. For instance, while normal halogen‟s efficiency compared (lamp level) to incandescent‟s 60W is 11 to 12 lumen per watt, ecofriendly new halogen‟s efficiency is approximately 15 lumen per watt.8 The future technology split will shift towards a more energy-efficient mix, with non-LED green technologies playing a major role before transitioning to LED, especially through to 2016 (until LED gradually becomes more cost competitive). While the incandescent market – calculated on a unit base – will decrease from 52 to 9% from 2010 to 2016, the shares of other energy-efficient technologies will increase. CFL, for example, will rise from 17 to 25 percent over the same time scale, and halogen from 12 to 22%. These traditional eco light sources will also gain a greater share vis-à-vis the same technology (normal halogen versus eco-friendly halogen, for example) as their availability increases, even though their prices are higher than those of standard products. Asia leading the global LED general lighting market: Asia is leading the global LED general lighting market with 40 – 50% of the total market going forward. At a more granular level, trends differ by country/region, as described below:
  42. 42. North America: At present, North America‟s LED market share is estimated at around 7%, with a market size of EUR 1 billion. This market is currently led by the new fixture installation market, especially in the non-residential segment, supported by several government initiatives such as the LEED (Leadership in Energy and Environmental Design) program in the US. Although the incandescent ban will come into effect starting in 2012, LED market share may grow more slowly in the light source replacement market. CFL and electricity prices are relatively low in most US states, which means the benefits of LED light bulbs are limited. However, LED market share is likely to increase as the price of LED lighting goes down, even in the residential and light source replacement segments. These factors will accelerate LED market share in North America, which is expected to rise to over 45% in 2016 and around 70% in 2020 on a value basis, including both new fixture installation and light source replacement. Europe: LED market share in Europe is currently estimated at around 7%, with a market size of around EUR 1 billion, similar to that of North America. The current major application of LED lighting in Europe is architectural lighting as European buildings tend to be decorated by colorful exterior lighting, where RGB type LEDs have considerable advantages. The incandescent ban will be a key trigger for increasing LED market share, particularly white light. Europe has the fastest incandescent ban roadmap. Almost all incandescent lighting will be banned by 2012. However, Europeans are very light-quality-conscious, which could be a potential barrier. Halogen lighting is likely to benefit from the incandescent ban until LED overcomes its color quality issues. However, Europe‟s high electricity prices and tendency towards high energy awareness will push up LED‟s share of the market, especially in Western Europe, while Eastern Europe lags behind. Europe‟s LED market share is expected to be over 45% by 2016 and over 70% by 2020. Asia: Currently, the Asian general lighting market is already the largest market in terms of both total general lighting and LED lighting. Furthermore, heavy demand for new construction and the increasing affordability of LED will strengthen Asia‟s position in the global lighting market. In terms of current LED market share, Asia‟s figures are similar to those of Europe and North
  43. 43. America due to the Chinese government‟s strong support for LED street lighting and Japan‟s strong retrofit market. However, Asia‟s LED market share is expected to be lower than that of Europe and North America, at around 45% in 2016, rising to almost (but not above) 70% in 2020. China plays a significant role in this region due to its large economic size and strong growth. LED‟s main market share in China is in outdoor and architectural lighting. The government intensely supports the installation of outdoor LED lighting, aspiring to achieve an LED share in this segment of 30% by 2015. The high demand for landmark buildings also favors architectural lighting. Total LED market share in the Chinese market is going to be lower than in the West due to several factors. Local governments strongly support CFL, and the price of CFL is relatively low, buoyed by local Chinese brands. This limits LED penetration in the residential segment, which is the largest application. (The average CFL price is USD 2 to 3 without government subsidies, and government subsidies for residential use are 50% of the price at present.) China‟s LED market share is currently estimated at around 7%. It is expected to be around 45% in 2016 and over 65% in 2020. However, thanks to the enormous size of its total lighting market, China is expected to account for 20 percent of the global LED general lighting market in 2020, with a market size of EUR 11 billion. Japan will be an early adopter in the retrofit market. One factor is the current high price of CFL lighting, which is six times that of China. The availability of highly energy-efficient LED bulbs is another: LED bulbs equivalent to 60W incandescent bulbs typically offered in Japan only consume 4 - 9W compared to 11 - 12W as is typical in Europe and the US. A further push comes from strong retailer and manufacturer promotion of LED, as well as recent energy saving requirements due to the Fukushima nuclear disaster. As a result of all these drivers, the LED retrofit market in Japan is already taking off. However, the current very high fluorescent market share – even in residential segments – will be a barrier to expansion of the total LED general lighting market in Japan.
  44. 44. Rest of world: The rest of the world – Latin America, the Middle East, and Africa – accounts for a much smaller share than the other regions covered in the survey in terms of the size of both their total general lighting and LED general lighting markets. LED is nevertheless expected to gradually penetrate these regions depending on application, though the speed of uptake is likely to be slower than elsewhere. The LED market share is currently estimated at around 3 percent in each of these regions. It is expected to rise to 35 – 40% in 2016 and 55 – 60% in 2020. This is mainly driven by the growth of major cities and urbanization in Latin America and the Middle East.
  45. 45. LED Market Analysis: The big picture conveyed in the previous two chapters is based on detailed calculations for every segment, technology, and geography. As general lighting is the largest market, this chapter covers the individual applications in that field and presents the technology trends by geography for each of the regions surveyed. The uptake of LED mapped out over the next decade has radical implications for the sector‟s industry structure. Companies need to ensure that their strategies factor in these changes as constellations gradually shift towards more new fixture installation business. Applications: Architectural Is the Early LED Adopter, With Residential Moving Slowly but Significantly General lighting consists of 7 applications. The first 6 – residential, office, shop, hospitality, industrial, and outdoor lighting – are defined by type of location and building. The 7th, architectural, is – in contrast – a functional application, the purpose of which is mainly decorative or to create mood. Residential is and will remain the largest market segment, followed by office and outdoor
  46. 46. Total general lighting market: New fixture installation market with light source and lighting system control component (full value chain) and light source replacement market. The applications market is determined by the number of installation locations and life cycle of fixtures. Since approximately 70 percent of buildings are currently residential, the huge number of lighting installation spots make residential the largest application overall. Its market share is around 40 percent, although the average price of lighting products in residential is low relative to others. Office and outdoor follow with a market share of over 10 percent each – again due to their large number of lighting installation spots. Although shop and hospitality have fewer installation spots, their lighting fixture replacement cycles are faster than for other applications, which increases their lighting market size. LED market share and technology mix vary by application as each has differing key requirements and barriers. These range from technology requirements to mismatched incentives between purchasing decision makers and beneficiaries of energy savings (so-called principal- agent conflicts). These different key requirements and barriers affect each application‟s LED market share, LED market size and technology mix. Architectural lighting already has a value- based LED market share of almost 40 percent, while the other applications only have a single- digit LED market share as yet. Residential is slower where LED penetration is concerned, but is already the largest market thanks to its vast total lighting market size. The subsequent paragraphs provide details for each application. Architectural: Architectural lighting is the prime early adopter of LED. Market share in this application segment was estimated at almost 40% in 2010, and is expected to be 74% within just five years by 2016, and 86% by 2020. One of the biggest advantages of LED in the architectural field is its RGB color controllability. In traditional lighting, RGB code colors are controlled by color film filters (color wheels), which require high maintenance costs. Another important factor is that both the flexibility and speed of color control are limited in traditional lighting. LED has overcome these drawbacks and created new applications, such as media façades and some entertainment lighting. A further trend will be white LED market share. Although this is more
  47. 47. expensive than RGB, LED symbolizes energy consciousness, and architectural lighting is widely defined as the high-end building lighting application that tends to use advanced technologies. Residential: Current light sources vary by region in the residential application. Incandescent has the largest share globally on a unit basis, while the shares of halogen and LFL are country-dependent. Europeans tend to use halogen, as they have a strong preference for warm-colored light, whereas Asians tend to use LFL, as their preferences on this are less pronounced. The major trend in residential applications today is the increasing share of CFL. People are shifting to CFL as awareness of life cycle costs grows. However, CFL‟s lower color quality is a barrier to its penetration in segments that are highly conscious of this feature, especially Europe. In terms of LED penetration, residential is much slower than architectural lighting. Current LED market share in residential is estimated at around 6 percent at present. The current major LED lighting market in residential is light source replacement as opposed to other segments, and this trend will likely continue through 2016. As its current price is far higher than that of other technologies, current LED market share is limited in this very price-sensitive segment. However, LED lighting is particularly making inroads into lamp retrofitting as its price declines, and the new fixture installation market is also expected to take off, which results in a forecast of almost 50 percent LED market share for 2016 and around 70 percent for 2020. Office: LFL currently has a large share in the office segment, except in high-end office buildings where more downlight-type lighting and warm color light sources are preferred. Other technologies differ by country and by the location where the lighting is installed. LFL is likely to maintain the highest market share even in 2016, as its cost performance will still be the best. LED also faces principal-agent conflicts in this segment (except in owner-occupied buildings), as the decision makers are generally not the beneficiaries of LED‟s low energy consumption. Current LED market share in the office segment – where LED is a slow mover – is estimated at around 2 %t and expected to grow to around 30% by 2016 and approximately 52 % by 2020.
  48. 48. Shop: This application consists of many subsegments, from supermarket (mainly LFL and CFL) to fashion clothing display lighting (mainly halogen and incandescent). Current halogen and incandescent users are sensitive to light quality, requiring high CRI (Color Rendering Index), color consistency and well-managed light distribution. LED is still at a disadvantage where these features are concerned. However, LED‟s light quality is improving: it already has a CRI of over 90. LED lighting is expected to eventually replace incandescent and halogen as a result of this combined with its other benefits, such as low energy consumption, lower heat generation, and greater design flexibility, once LED costs fall. LED is already better than LFL and CFL where many light quality features are concerned, but its current challenge versus these fluorescent lamps is cost. As the cost of LED declines, it is likely to penetrate the current fluorescent lamp segments as well in the shop segment by emphasizing its features of light quality and design flexibility, especially in the new fixture installation market. Moreover, LED‟s lower maintenance costs are also appreciated in this segment, especially at retail chains such as Starbucks and Walmart. Current LED market share in the shop segment is estimated at around 2 percent and is expected to grow to around 50 percent by 2016, increasing to almost 75 percent by 2020. Hospitality: The hospitality segment is complex. Mid- to high-end segments generally prefer warm light such as halogen and incandescent to obtain color quality and dimmability. However, lower-end segments of the hospitality application tend to use LFL, especially in Asia. LED market share varies by subsegment, from high-end hotel lighting to low-end restaurant lighting. Current LED market share in hospitality is estimated at close to 10 percent. It is expected to rise to around 50 percent by 2016 and over 80 percent in 2020. Similar to shop lighting, high-end segments in the hospitality application are sensitive to light quality. LED is still at a disadvantage in this respect. However, one aspect in its favor is that the high-end hospitality segment emphasizes light controllability (such as dimming) to change mood. This segment – hotel chains, for example – also tends to be an early adopter of new technology as, to
  49. 49. take just one example, lighting is needed 24 hours a day in common areas. These features – in addition to LED‟s improved light quality – will help drive LED market share. Industrial: LFL and HID are the major technologies in the industrial segment at present. Current LED market share in industrial lighting is estimated at less than 1 percent. A key driver of LED penetration in this segment is total cost of ownership (TCO). LED can reduce lighting maintenance costs significantly, especially in high, hard-to-reach places (high-bay lighting) where replacement costs are much higher than in locations closer to ground level. However, in this application LED needs to compete with HID and LFL, which have high energy efficiency and good cost performance, limiting LED market share in this segment. LED market share in industrial lighting is expected to be limited to around 20 percent in 2016 and approximately 40 percent in 2020. Outdoor: The current major light sources in the outdoor segment are HID and fluorescent lamps. HID is mainly used for wide-area lighting and LFL for narrow-area lighting. HID mainly consists of mercury vapor, metal halide, high-pressure sodium, and low-pressure sodium lamps. Sodium lamps are very cost efficient (their price is low, and they have a long life), but their color quality is considered poor. The major technology shifts in outdoor lighting are towards both HID and LED lighting. Within HID, white (high-CRI) HID is tending to gain share, while LED is increasing its share within white-color preference segments due to its longer lifetime and government support. Similar to industrial lighting, the key buying factor in this segment is TCO. Outdoor lighting is mostly installed at considerable heights, and the benefits of LED are greater than in the field of industrial lighting. Current LED market share in outdoor lighting is estimated at around 5 percent. It is expected to be close to 40 percent in 2016, rising to around 70 percent in 2020. Government initiatives are key to adoption. Governments are the chief owners of most outdoor lighting and are therefore the prime decision makers on LED installations. The current pressure on governments to reduce CO2 emissions will push LED market share in this segment. However,
  50. 50. LED needs to compete with HID, and LED will face difficulties in replacing very-high- brightness applications such as stadium lighting, where HID is expected to maintain its strong advantage. Geographies: Asia Leads The Global LED General Lighting Market: Asia is already estimated to be the largest general lighting market with approximately 35 percent of the total market and is strengthening its position due to strong economic growth driven mainly by China. Asia‟s lighting market share is expected to be more than 45 percent by 2020. Europe and North America are likely to follow with a market share of approximately 25 percent and 20 percent, respectively, while the rest of the world will lag far behind these regions. A key reason for this landscape is that growth of the general lighting market is highly correlated with local construction investment. Currently, Asia accounts for an approximate 35 percent share of global construction investment, followed by Europe‟s 27 percent and North America‟s 17 percent. Asia also has a higher growth rate than other regions, driven particularly by China and non-OECD Asia growing at a rate of 13 percent and 12 percent, respectively, from 2010 - 16. Growth in Western Europe over the same time period is expected to only be 2 percent. The light source technology mix/LED market share in general lighting varies by region/country and is determined by factors such as government regulation, development of the economy, and light source preference. One of the major drivers for determining technology mix is regulation. A heavy focus on climate change issues is now
  51. 51. Asia Is the Largest Lighting Market and Will Strengthen Its Position Going Forward General lighting market trend by country/region: Total general lighting market: new fixture installation market with light sources and lighting system control components (full value chain) and light source replacement market
  52. 52. Energy Efficient Light
  53. 53. Energy Efficient Lights – An Overview & Its Prospect In Bangladesh: Nowadays energy efficiency is one of the most common issues concerning the sustainable use of energy resources. Energy efficiency and renewable energy are said to be the twin pillars of sustainable energy policy. In many countries energy efficiency is also seen to have a national security benefit because it can be used to reduce the level of energy imports from foreign countries and may slow down the rate at which domestic energy resources are depleted. Energy Efficient Bulbs -an overview: Switching to energy-efficient lighting is one of the most effective ways to adopt energy efficiency. 3 of the most common energy-efficient lighting types include: Energy Saving Incandescent: Saves Around 25% Energy: Energy-saving, or halogen, incandescent has a capsule inside that holds gas around a filament to increase bulb efficiency. This type of incandescent bulb is about 25% more efficient and can last up to three times longer than traditional incandescent bulbs. Energy Efficient Bulbs LEDs Energy-Saving Incandescents CFLs
  54. 54. CFLs: Saves Around 75% Energy: Compact fluorescent lamps (CFLs) are simply curly versions of the long tube fluorescent lights you may already have in your home. Compared to general-service incandescent lamps giving the same amount of visible light, CFLs use one-fifth to one-third the electric power, and last eight to fifteen times longer. A CFL has a higher purchase price than an incandescent lamp, but can save over five times its purchase price in electricity costs over the lamp‟s lifetime. Fluorescent bulbs contain a small amount of mercury, and they should always be recycled at the end of their lifespan. LEDs: Saves Around 75% – 80% Energy: LED lamps or LED light bulbs are solid-state lamp that uses light-emitting diodes (LEDs) as the source of light. Initially more expensive than CFLs, LEDs bring more value since they last longer. Also, the price of LED bulbs is going down each year as the manufacturing technology continues to improve. LEDs use less power (watts) per unit of light generated (lumens). LEDs help reduce greenhouse gas emissions from power plants and lower electric bills Energy Efficiency & Energy Costs LEDs Incandescent Light Bulbs CFLs Life Span (average) 50,000 hours 1,200 hours 8,000 hours Watts (equivalent to 60 watt bulb). 6 - 8 watts 60 watts 13-15 watts Kilo-watts (30 Incandescent Bulbs per year equivalent) 329 KWh/yr. 3285 KWh/yr. 767 KWh/yr. Annual Operating Cost (30 Incandescent Bulbs per year equivalent) $32.85/year $328.59/year $76.65/year Lumen Output: Comparing LED vs. CFL vs. Incandescent Wattage: The chart below shows the amount of brightness in lumens you can expect from different wattage light bulbs. The LED bulbs require much less wattage than the CFL or Incandescent light bulbs, which is why LED bulbs are more energy-efficient and long lasting than the other types of bulb.
  55. 55. Incandescent Watts CFL Watts LED Watts Lumens (Brightness) 40 8 – 12 6 – 9 400 – 500 60 13 – 18 8 – 12.5 650 – 900 100 23 -30 16 – 20 1800+ Energy Efficiency and Bangladesh: With a high annual growth rate of 9 % in electricity demand, Bangladesh is currently facing an energy crisis. Against a daily peak demand of 6,000 MW during the summer Boro (irrigation) season, the power system can generate only 4,000 MW. This demand for electricity is also increasing everyday with the process of urbanization and industrialization. Bangladesh is expanding its grid, and building new power plants, but also investing in off-grid electrification through solar home systems in urban and rural areas. In the short term, however, Bangladesh is pushing the boundaries to also make energy “use” more efficient. On Saturday, June 19th 2010, Bangladesh government with the help of a project of World Bank distributed five million high quality CFL bulbs at over 1,400 rural and urban distribution centers spread across 27 districts. This event broke a record set by the British in January of 2008, for the most number of CFL bulbs distributed in a single day―some 4.5 million. An additional 17.5 million CFLs are expected to be deployed in the next phase. Prospect As we find the positive effects of CFLs, at the same time we have think about its adverse effects. CFLs, like all fluorescent lamps, contain mercury as vapor inside the glass tubing. Most CFLs contain 3–5 mg mercury per bulb, with the bulbs labeled “eco-friendly” containing as little as 1 mg. Because mercury is poisonous, even these small amounts are a matter of concern for human health. Due to the mercury in fluorescent bulbs, they require special disposal method which isn‟t available in the third world countries like Bangladesh. So the government either has to ensure the disposal and recycling process of CFLs or should go for better technologies like LED lamps which are free from mercury.
  56. 56. Bangladesh Economic Review 2013: Besides electricity production the govt. has taken great energy saving incentives. For the first time in the country, 1 crore 5 lac energy saving CFL bulbs have been distributed among 45 lac consumers for free. As a result, 80-90 Megawatt of electricity has been possible to save. Within 2013, it is planned to distribute 72.5 lac more energy saving CFL bulbs. Hopefully, a remarkable amount of energy can be saved in this way. Moreover, instead of more energy wasting magnetic ballast, energy saving electronic ballast & T-5 tube light is advised to use for the consumers. Discouraging the incandescent lights, energy saving CFL bulb is encouraged to produce more. Energy Efficiency Initiatives: The government has taken a number of initiatives for efficient energy use and reduced consumption of energy.  Steps have been taken to revise the „Building Code‟ inserting energy efficiency and solar energy issues  Initiatives have been taken in order to build awareness amongst the students, by incorporating Energy Efficiency and Solar Energy issues in the academic curricula of schools, madrasas and colleges  Installation of solar panels in the government, semi government and autonomous organizations within the next 3 years  Use of CFL bulb in all ministries and power sector entities  Conventional street lights to be replaced by LED and solar lights subsequently  Public awareness for energy conservation  The gradual discontinuation of incandescent bulb and electric heater  Limiting the use of air conditioners, or keeping temperature within 25 degrees C  Encouraging the business community for using solar energy
  57. 57.  Introduction of energy star rating system in the electric appliances through BSTI  Discouraging the use of neon sign in the markets and shopping malls at night  Closing of markets and shopping malls within 8 p.m. Efficient Lighting Initiatives of Bangladesh (ELIB): The total supply of electricity cannot cover the present demand of electricity in Bangladesh. The government is trying its best to solve this supply gap by installing new power plants. Beside new generation addition, government took initiatives in demand side management. These initiatives are taken for reducing demand of electricity. One of the effective ways to reduce demand of electricity is the efficient use of electrical appliances. Government of Bangladesh took a project named Efficient Lighting Initiatives of Bangladesh (ELIB) to replace approximately 30 million household incandescent lamps(IL), with an equal number of energy efficient CFLs, bearing the same or higher lumen output. The main benefit of the program includes reduction of energy bills and improved quality of lighting and significant energy savings. This program is projected mainly to reduce load shedding. The efficient lighting project will benefit the customers providing them with high quality and low price CFLs, thereby reducing their electricity consumption and bills. 10.5 million CFLs have been distributed in Phase 1, providing two days for its distribution. This has turned out to be one of the biggest campaigns in the world for distributing nearly 5 million CFLs in a span of only one day. Various awareness generating programs were launched for this distribution. Rally, leaflets, posters, campaign programs in print and electronic media were used for motivating the general mass. People came to the centers to receive CFLs in exchange of incandescent bulbs. The mood throughout the country was festive and people were happy to switch to CFLs. According to conservative estimates, this 1st phase program saves nearly 300MW of power and a huge amount of money. ELIB also earns carbon revenues from phase I. There is an agreement of over 6.5 million carbon credits for a period of three years for the first phase. Source: Ministry of Power, Energy and Mineral Resources
  58. 58. Production: Tube light Production target for the July 2012-December 2012 period was 3.5 lac pieces & achieved amount was 2.87 lac pieces which is 82% of the target. CFL light production for this period was 0.31 lac pieces without any target in hand. Sales: Tube light sales for the July 2012-December 2012 period was 2.42 lac pieces among the target of 3.5 lac pieces which is 69% of the target. CFL light sales for this period were 0.13 lac pieces without any target in hand. Source: BSEC, Ministry of Industry Light Engineering Industry Could Produce Cars for Export: Minister By upgrading technology and with proper support Bangladesh‟s light engineering industry could recondition pre-used cars for export markets, environment minister Hasan Mahmud said on Thursday. Inaugurating the third Bangladesh International Industrial Engineering Tradeshow in the city he said that local light engineering industry could innovate and produce for the international market. He said that the country‟s light engineering manufacturers could innovate and produce products for the international market. Manufacturers from Bangladesh, India, China and other countries showcased an array of products in 150 stalls at the four-day fair at Bangabandhu International Conference Centre. Bangladesh Engineering Industry Owners Association, Ask Trade & Exhibitions Pvt. Ltd India and Zakaria Trade and Fair International Bangladesh jointly organized the tradeshow with support from the Business Promotion Council. Reconditioning industry thoroughly inspects and replaces worn out or faulty parts of pre-owned cars before export so that they look like new. Experts said that the performance of reconditioned cars should be comparable to a brand new car. They are suitable for buyers with a lower budget but have a strong preference for a good car.
  59. 59. Organizers said that it was the third industrial, engineering and manufacturing technology tradeshow and second international solar products and technology tradeshow. Participating companies put on display a wide range of products from heating and dyeing systems to drilling rigs. Also on display are solar street lighting system, home system, charge controller, LED, one line UPS, solar system digital clocks, solar appliances and energy saving bulbs. United Oil co-sponsored the solar technology tradeshow with Energy Power. Organizers said that the fair would remain open to visitors from 11 AM to 7 PM each day. The fair closes on April 8, 2013. BEIOA president Abdur Razzaque said that each year Bangladesh‟s light engineering industry manufactured products and services worth Tk 20,000 crore. To make Bangladesh a middle income country, he said, the government must ensure access to finance, adopt light engineering friendly policies to facilitate up gradation of technology and set up the needed industrial parks. Commerce ministry additional secretary Manaj Kumar Roy, Ask Trade & Exhibitions Pvt. Ltd. director Nanda Gopal K and Hydron Bangladesh Pvt Ltd managing director Mostafa Mohammad attended the inauguration. Source: New Age BD
  60. 60. Marketing Strategy For New Nation Lighting Ltd.
  61. 61. Situation Analysis for New Nation Lighting Ltd: About New Nation Group: New Nation Group has a business history of over 31 years & has been serving the nation with products and services since its promoter and group Chairman, Tofazzal Hossain started his journey in the arena of trade, industry and business in the year 1980. This is the logo of New Nation Group: Businesses:  New Generation Trading  New Nation Agro Ltd.  New Nation Solar Ltd.  New Nation Garments Ltd.  New Nation Developments Ltd.  New Nation Fisheries Ltd.  New Nation Trading  Protik Ceramics Ltd.  Great Wall Land Property Ltd.
  62. 62.  Unity Fabrics Ltd.  T.H. Packages Ltd.  T.H. Fashions Ltd.  Cherry Apparels Ltd.  Agro Equipments Ltd.  New Nation Corporation New Nation Lighting Ltd.: New Nation Lighting Ltd. is going to be launched in this year 2013. It is going to introduce its business with the common lighting products in some key markets in Dhaka Metropolitan Areas. Among the lighting products CFLs, Tube & LEDs will be introduced initially. However, the vision of this organization is to capture the LED market in Dhaka city initially & then the whole country & take the leading position in LED market in Bangladesh. This is the prospected logo of New Nation Lighting Ltd.: The organization will manufacture the products in a specified foreign country & then it will import the product label as “New Nation Lighting”. Next, the products will be distributed.
  63. 63. Market Summary: Although New Nation Lighting Ltd. is going to start in a planned manner, there is an intense competition in the lighting markets in Bangladesh, especially in Dhaka Metropolitan Areas. To gain significant market share & project for a good market growth, the organization must carefully target specific segments with features that deliver benefits valued by each customer group. New Nation Lighting Ltd. has a target market segments consists of household & business group these 2 basic categories. Then they are classified as the following: These are the targeted group of customers for New Nation Lighting Ltd. For household group, buyers can choose between Watts of variation in the lighting products from near retail markets or retail shops. For business group, buyers can choose between different Watts of lighting products & different sizes & fitting solutions from wholesale markets, distributors or directly from the company. Household • Building Owners • Tenants Business Group • Architects • Lighting Designers • Interior Designers • Electrical Engineers • General Contractors • Electrical Contractors • Electrical Wholesalers • Electrical Retailers
  64. 64. Product Review: Products for New Nation Lighting Ltd. are given as the following: 1. Fluorescent Tube Light: SL. Watt Description Photo 1 40 W 4′-32 mm fluorescent Tube Light 2 36 W 4′-26 mm fluorescent Tube Light 3 36 W 4′-32 mm fluorescent Tube Light (green) 4 36 W 4′-32 mm fluorescent Tube Light (blue) 5 18 W 2′-26 mm fluorescent Tube Light 2. Compact Fluorescent Lamp (Daylight): SL. Watt Description Photo 1 7 Watt Lumen: 322 ± 5% Lm, Efficacy : ≥ 46 Lm/watt, Power Factor: ≥ 0.5 2 15 Watt Lumen: 855 ± 5% Lm, Efficacy : ≥ 57 Lm/watt, Power Factor: ≥ 0.5 3 20 Watt Lumen: 1140 ± 5% Lm, Efficacy : ≥ 57 Lm/watt, Power Factor: ≥ 0.9 4 26 Watt Lumen: 1612 ± 5% Lm, Efficacy : ≥ 62 Lm/watt, Power Factor: ≥ 0.9 5 32 Watt Lumen: 1984 ± 5% Lm, Efficacy: ≥ 62 Lm/watt, Power Factor: ≥ 0.9 6 65 Watt Lumen: 4030 ± 5% Lm, Efficacy: ≥ 62 Lm/watt, Power Factor: ≥ 0.5 7 100 Watt Lumen: 6200 ± 5% Lm, Efficacy: ≥ 62 Lm/watt, Power Factor: ≥ 0.5
  65. 65. 3. T-5: SL. Watt Description Photo 1 14 Watt Dimension: 563 x 16mm, Lumen: 1045 2 28 Watt Dimension: 1163mm x 16mm, Lumen: 2350 4. LED: SL. Watt Description Photo 1 5 Watt LED Bulb Equivalent to: 40 Standard Bulb, Lumen: 550, Life Time: ≥ 20000HRS 2 5 Watt LED Equivalent to: 40 Standard Bulb, Lumen: 550, Life Time: ≥ 20000HRS 3 3 Watt LED GU- 10 Equivalent to: 40 Standard Bulb, Lumen: 330, Life Time: ≥ 20000HRS 4 3 Watt Ceiling Spot Equivalent to: 24 Standard Bulb, Lumen: 330, Life Time: ≥ 20000HRS 5 3 Watt Rechargeable LED BATTERY: 2x4V 900m Ah Sealed Lead rechargeable battery, Equivalent to 30 LED, Charge Time: 6-8 hours (switch OFF) 12-15 hours (switch ON), Duration Time: Approx 4 hours, Life Time : 20000 HRS
  66. 66. Competitive Review: There are a few competitors in the lighting market in Bangladesh. Both domestic & foreign companies are competing in the lighting market. They are competing differently according to the variety of lighting products, like GLS, CFL, LED, and Tube etc. The main competitors in the market are given as the following: Brand:  Most of the lighting products are CFL  Among the brands, is leading the Bangladeshi lighting market.  Very few shopkeepers say positive future of LED  If price & energy saving is reasonable compared to CFL & other types, LED will capture a huge market as said by both retailers & wholesalers.  LED is more acceptable in showrooms, offices, commercials, restaurants, & official stages.  Well known companies or branded companies will do well in capturing large market share.  Retail store controls the selling of brand on their will.  Only a few upper level customers purchase LED for home purpose & others do CFL.  Chinese LED is capturing the whole LED lighting market basically 1w, 3w, 5w & 7w.  Wholesalers always focus on those items which yield maximum commission or profit. Brand Philips Transtec Energy Pac Super Star Energy + Osaka Osm Non- Brand Prodip Pasha Other Chinese Brands
  67. 67. Super Star: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 200 13W 250 7W CFL 230 18W 260 9W CFL 240 20W 285 13W CFL 250 23W 295 18W CFL 260 26W 320 20W CFL 285 0 0 23W CFL 295 0 0 26W CFL 320 0 0 30W CFL 330 0 0 Energy +: Power Types MRP Fast Moving Items MRP(BDT) 7W CFL 210 7W 210 15W CFL 225 15W 225 26W CFL 290 26W 290 32W CFL 325 32W 325 65W CFL 1050 65W 1050 5W LED 550 5W LED 550 7W LED 750 7W LED 750 9W LED 1050 0 0 3W Spot LED 550 0 0 6W Spot LED 750 0 0 8W Spot LED 950 0 0 12W Spot LED 1850 0 0
  68. 68. Philips: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 160 14W 250 7W CFL 170 18W 260 14W CFL 250 23W 280 18W CFL 260 30W 320 23W CFL 280 0 0 30W CFL 320 0 0 Transtec: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 140 8W 245 7W CFL 150 11W 255 14W CFL 260 23W 305 18W CFL 210 26W 320 23W CFL 305 30W 335 30W CFL 335 0 0 Osaka: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 130 14W 180 7W CFL 145 18W 190 14W CFL 180 23W 210 18W CFL 190 30W 255 23W CFL 210 0 0 30W CFL 255 0 0
  69. 69. Energy Pac: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 210 15W 260 7W CFL 220 20W 280 15W CFL 260 23W 300 20W CFL 280 26W 320 23W CFL 300 30W 330 26W CFL 320 0 0 30W CFL 330 0 0 42W CFL 525 0 0 65W CFL 1000 0 0 85W CFL 1300 0 0 OSM: Power Types MRP Fast Moving Items MRP(BDT) 5W CFL 210 15W 260 7W CFL 210 18W 275 9W CFL 220 23W 290 11W CFL 240 26W 300 13W CFL 250 32W 320 15W CFL 260 0 0 18W CFL 275 0 0 23W CFL 290 0 0 26W CFL 300 0 0 32W CFL 320 0 0 36W CFL 360 0 0
  70. 70. Non-Brand: Prodip:  They follow techniques of creating customers.  Prodip gets the most incentive from suppliers. That is why they are offering new items in market.  Till now they have captured Nawabpur market partly and they have 8 showrooms at Nawabpur, 4 at Paltan, 2 at Uttara, and 1 at Sylhet. They have a godown at Nawabpur for quick delivery.  In lighting sector, they focus on CFL lighting but technically they are expanding LED market.  Among Pasha, Suntech, Tachi and Prodip, Prodip is selling is the most.  Prodip has more popularity in CFL market.  Fast moving items have daily sales of 200-350 Pieces.  5w and 8w are fused quickly that‟s why they are getting out of the market.  Price and quality declines as new designs and brands are introduced.  Per day sales is about 25000-35000 BDT in wholesale store.  They have lot of dealers in different districts.  Prodip has got tube, fan & other electronic items also.  Prodip targets on both household & corporate sector. They usually target all levels of customers.
  71. 71. Power Types MRP Fast Moving Items MRP Dealer Price Guarantee 5W CFL 190 11W 215 43 1-3 years 11W CFL 215 15W 230 46 1-3 years 15W CFL 230 20W 260 52 1-3 years 20W CFL 260 26W 270 54 1-3 years 26W CFL 270 33W 300 60 1-3 years 33W CFL 300 3W 300 30 1-3 years 65W CFL 1055 5W 450 45 1-3 years 3W LED 300 7W 550 55 1-3 years 5W LED 450 0 0 0 1-3 years 7W LED 550 0 0 0 1-3 years Pasha:  Owner of Pasha is Mr. Tipu  Pasha is going to bring an upgrade of CFL, called MSD in the market.  24w & 26w CFL are capturing most of the Pasha‟s market share  Pasha is doing well in the LED sector as a brand like other Chinese brands are doing  LED Metal 10w-200w provides more energy saving than CFL in outdoors  LED does not usually cut off. Its circuit can be disturbed which can be easily replaced or repaired  LED light can have 7-10 years of lifetime  Pasha does not usually provide any type of commission in case of LED but in case of CFL they provide commission  Pasha sells more than Opple brand in BD market  Pasha CFL is sold more than its tube  Average sales per day for both CFL & LED is 20000-22000BDT in a wholesale store  Osaka influences Pasha in case of its daily sales target
  72. 72.  Pasha is doing business in a few districts & not well as Prodip does  It has 3 godowns to support the supply  It provides trade promotions in case of CFL only  They are more interested in LED market and hopefully at a time they will engage in a few particular markets Power Types MRP Fast Moving Items MRP Dealer Price Guarantee 15w CFL 160 23w 250 40 1-3Years 20w CFL 240 26w 260 60 1-3Years 23w CFL 250 32w 290 62.5 1-3Years 26w CFL 260 T4 8w 100 65 1-3Years 32w CFL 290 T4 20w 130 72.5 1-3Years 65w CFL 700 T4 24w 135 175 1-3Years 85w CFL 1050 T8 36w 70 262.5 1-3Years 105w CFL 1300 T8 40w 70 325 1-3Years T4 8w Tube 100 3w 350 25 1-3Years T4 20w Tube 130 5w 580 32.5 1-3Years T4 24w Tube 135 7w 680 33.75 1-3Years T8 36w Tube 70 12w 1300 10.5 1-3Years T8 40w Tube 70 0 0 10.5 1-3Years 3w LED 350 0 0 35 1-3Years 5w LED 580 0 0 58 1-3Years 7w LED 680 0 0 68 1-3Years 12w LED 1300 0 0 130 1-3Years Other Chinese Brands:  There are some other Chinese Non-Brands like Suntech, Tachi, Rahmans & others.  5w, 8w, 24w, 28w are the most selling items.  More than 80% of the LED is Chinese Non-Brand.  CFLs, T5, T8 & Incandescent light are also available.  Average sales per day for both CFL & LED is about 20000-22000BDT