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Will lighting business get better in 2021?

2021-05-07

Say goodbye to the special and difficult 2020 and usher in 2021. Many companies have seen hope in 2021, but they are still full of difficulties.

 



According to statistics from the General Administration of Customs, the export value of Chinese lamps, lighting devices and their parts from January to March 2021 was 10.308 billion U.S. dollars (approximately RMB 67.526 billion), an increase of 100.3% over the same period last year, and the export value for the same period last year was 51.47. Billion US dollars (approximately RMB 337.17 billion). Among them, the export value of Chinese lamps, lighting devices and their parts in March was US$2.490 billion (approximately RMB 16.311 billion).

 

 

 

It is undeniable that the export value of lamps, lighting devices and their parts in the first quarter of 2021 doubled compared with the same period of the previous year. On the one hand, it opened up a new situation in lighting exports, and on the other hand, it also injected a shot of "cardio-stimulant for lighting export companies ".

 

 

In 2020, the corona-virus epidemic will spread globally, domestic and foreign lockdown measures will be strengthened, people's outing shopping will be reduced, and the entire market demand will shrink rapidly. S noticed that in the first quarter of 2020, due to the domestic epidemic, the supply-side problems were prominent, and the sales orders received by lighting export companies showed a downward trend, and the original orders were postponed or cancelled. Nevertheless, the overall lighting export value in the first half of 2020 has declined. According to statistics from the General Administration of Customs, in the first half of 2020, China’s exports of lamps, lighting devices and their parts totaled 97.12 billion yuan, a decrease of 3.2% from the same period last year.

 

Since the third quarter of 2020, China's lighting exports have started a strong rebound mode. According to statistics from the General Administration of Customs, China's exports of lamps, lighting devices and their parts in the first three quarters of 2020 totaled 175.49 billion yuan, an increase of 9.2% over the same period of the previous year. Among them, in the third quarter, China's total exports of lamps, lighting devices and their parts reached 78.37 billion yuan as a new high record.

 


By the fourth quarter of 2020, China's lighting exports finally reached a "V" shape reversal, and the total export of lamps, lighting devices and their parts reached 84.71 billion yuan. In addition, as the backlog of orders entered the later stage of execution and the restart of the economy in major markets in Europe and America, orders in the export market have gradually recovered.

 

However, whether the situation can continue depends on the recovery of the global economy and the control of the epidemic. I personally think that the challenges in 2021 are as follows: 1. The production capacity of electronic materials such as IC chips and electronic components. 2. The increase in the cost of raw materials. 3. Shipping price 4. Control of the epidemic situation throughout the year. 5. The economic promotion of countries after the epidemic

 

 

First of all, since 2021, due to the combination of various reasons, there has been an extreme shortage of raw materials such as IC chips and electronic components, which directly caused the delivery time of the power supply to be greatly extended, causing direct losses to factories and customers. If this problem is not solved, the lighting industry will be very difficult.

 

 

Second, the rising cost of raw materials. I personally believe that the epidemic or the release of US dollars has caused a lot of capital to flow into the raw material market, leading to a surge in raw materials. Regardless of whether the reason I said is correct or not, the skyrocketing raw materials is objective, as can be seen from the successive price increase notices of major international lighting companies. The increase in raw materials will cause customers to have to buy products at higher prices, which will undoubtedly reduce the number of purchases of some customers, which will negatively affect the industry.

 

Third, the price of shipping has soared. One is that shortage of containers in China, and the other is that there are more orders for transportation. Coupled with the "traffic jam" of the "Ever Given" in the Suez Canal some time ago. The shipping price may not drop for a while.

 


Fourth, the current epidemic situation in various countries is still very severe. If the epidemic cannot be effectively controlled, it will be very difficult for the global economy.


 

Fifth, the last is economic reconstruction after the epidemic. I personally think that with the development of vaccines, the virus can be solved, and it may take some time to achieve. But the economic trauma caused by the epidemic may take longer to repair.


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