The Era of Energy-Saving Lamps Is Approaching, Industry Competition Intensifies
More than 130 years ago, the invention of the incandescent lamp brought tremendous changes to the way humans live. Today, the incandescent lamp is about to bid farewell to domestic consumers. Recently, relevant national ministries and commissions stated that China will gradually prohibit the import and sale of ordinary incandescent lamps for general lighting in five phases based on wattage, starting from October 1, 2012, and will prohibit the import and sale of ordinary incandescent lamps for general lighting of 15 watts and above after October 1, 2016. Guided by policy, China's lighting industry is accelerating its entry into the "energy-saving era."
China began implementing the China Green Lighting Project in 1996; in 2008, the National Development and Reform Commission and the Ministry of Finance provided subsidies to promote high-efficiency lighting products, offering subsidies of 30% and 50% respectively to bulk users and urban and rural residents for purchasing energy-saving lamps. After years of market cultivation and product promotion, energy-saving lamps have become the leading players in the lighting source market in the retail market as well as in the household indoor lighting sector, according to investigations by reporters.
Reporters visited the lighting sections of the Shilihe Minle Building Materials City and the Sihui Building Materials Market, and found that some merchants are still selling incandescent lamp products, whose low prices continue to attract price-conscious consumers. However, in professional retail venues such as the Shilihe Lighting City and the Gaoli International Lighting Port, incandescent lamps are almost nowhere to be found, replaced by energy-saving lamp products of various shapes, wattages, and specifications. Reporters saw no fewer than dozens of brands, with well-known brands such as Philips, NVC, OPPLE, OSRAM, and Sunshine clearly enjoying higher popularity.
It is easy to feel during visits that long before the government announced the incandescent lamp phase-out roadmap, many consumers had already mentally written off incandescent lamps. A salesperson at an OPPLE Lighting specialty store said that nearly 90% of the customers who came to buy directly set their sights on energy-saving lamps. "Although a 100-watt incandescent lamp costs only a few yuan, people are more inclined to choose a 20-watt energy-saving lamp with the same luminous efficiency."
Competition in the lighting industry will intensify
It is understood that the introduction of the incandescent lamp elimination roadmap does not appear to have triggered an "earthquake" in the lighting electrical appliance industry. As many enterprises do not sell solely in the domestic market, demand from overseas markets—especially some developing countries that have no restrictions on incandescent lamps—remains huge.
Chen Yansheng, Chairman of the China Association of Lighting Electrical Appliances, said that incandescent lamp manufacturers will not disappear in the short term, but faced with policy guidance and changes in market demand, they will also face the challenge of transitioning to energy-saving lamps. "Many incandescent lamp manufacturers had already anticipated the policy in advance; the introduction of the policy merely further clarifies the timeline and will not cause too great an impact on the industry."
It is reported that China's energy-saving lamp industry is currently still a fully competitive industry, with the top 20 enterprises accounting for about 50% of the market share. The transformation of incandescent lamp enterprises will undoubtedly lead to fiercer competition among energy-saving lamp enterprises. Hu Qu, Senior Manager of the Marketing Department at OPPLE Lighting Co., Ltd., said that the production and sales of energy-saving lamps has reached a white-hot stage, and some manufacturers may turn to the LED product sector to seek business opportunities; such a transformation is more conducive to comprehensively promoting the development of the entire lighting industry.
Yu Yongtao, Senior Marketing Director of the China Market Department at Philips Lighting, also believes that as China and other countries around the world announce incandescent lamp phase-out roadmaps, many domestic incandescent lamp enterprises are joining the market competition for energy-saving lamps and LED products, which will accelerate the evolution of China's energy-saving lighting products.
Shi Yongjun, Director of the Brand Management Center at NVC Lighting, said that the country's clear elimination of incandescent lamps will promote the development of the lighting industry, accelerate the transformation and upgrading of industry products, phase out backward, inefficient, and high energy-consuming products, and develop energy-saving, low-carbon, more efficient and more energy-saving lighting products. "For lighting companies, this can bring broad market opportunities and also enhance their competitiveness. Of course, in the competition of survival of the fittest, if companies do not proactively increase R&D investment and product innovation, they may face industry reshuffling."
Promotion Difficulties
Awareness still needs to be improved
Energy-saving lamps have already entered the daily lives of consumers. Especially in first- and second-tier cities, the replacement of incandescent lamps by energy-saving lamps is already imminent. However, in third- and fourth-tier cities, the use of energy-saving lamps still needs to be further promoted. In particular, consumers in rural areas have insufficient understanding of the energy-saving, luminous efficacy and other performance aspects of energy-saving lamps. The advantages of energy-saving lamps over incandescent lamps still need to be more widely popularized and promoted.
High Price as a Bottleneck
Although large-scale mass production and strict process-oriented manufacturing by numerous energy-saving lamp manufacturers have gradually reduced prices and these lamps are beginning to be understood and recognized by the general consumer, some consumers still prioritize price over the energy-saving benefits when compared to inexpensive incandescent bulbs. It will take some time before energy-saving lamps can achieve both high quality and affordability.
Light Source Issues for Decorative Lamps
In lighting markets, many sellers of crystal lamps and decorative chandeliers still recommend incandescent bulbs as their light source. The reason is that energy-saving lamps mostly produce cool white light, and their illumination effect cannot achieve the crystal-clear brilliance of incandescent bulbs. At the same time, since crystal lamps and decorative chandeliers often require multiple bulbs per fixture, the total cost of using energy-saving lamps is significantly higher than that of incandescent bulbs, which to some extent also hinders the widespread adoption of energy-saving lamps.
Difficulty in Recycling Energy-Saving Lamps
Currently, the recycling of energy-saving lamps is mainly carried out by enterprises, while the government and society lack a complete recycling mechanism. The government only requires enterprises participating in national bidding to establish recycling mechanisms, while it merely advocates this for general enterprises. This is because recycling involves difficulties in transportation, limited storage space, and preservation challenges. If enterprises that have not received national subsidies were forced to recycle, the costs would be too high.
Industry View
Enterprises have prepared in advance
●Chen Yansheng, Chairman of China Association of Lighting Industry
Currently, there are several dozen enterprises nationwide producing and selling incandescent lamps. If a company already produces incandescent lamps along with other products, the transition is relatively convenient; companies that solely produce incandescent lamps need to completely change their technology and equipment, making the transition more difficult. Four years ago, the association began promoting the transition to enterprises, so they have already made some preparations.
Needs Scientific Research Backing
●Hu Qu, Senior Manager of Marketing Department, Opple Lighting Co., Ltd.
The lighting industry is different from other industries in that it requires strong scientific research and technology as its backing. For companies facing transformation, it is essential to avoid being impatient for quick results, to strengthen their own technological capabilities, and never to do anything that harms consumers' interests for the sake of small immediate gains.
LED Lighting Focuses on Industrial Upgrading
●Yu Yongtao, Senior Marketing Director of Philips Lighting China Market Department
Faced with the huge LED lighting market share, the first thing lighting companies should consider is how to work together to make the LED lighting cake bigger and stronger, and how to promote industrial development and upgrading. This is the prerequisite for ensuring the development of the LED lighting industry.
Energy-saving lamp recycling
Perfecting the recycling system requires government support
While the benefits of energy-saving lamps are widely recognized, their invisible pollution issues and the lack of recycling systems have also drawn much criticism. Dou Linping, Deputy Secretary-General of the China Association of Lighting Industry, believes that everything has two sides—where there is an advantage, there must be a disadvantage. The key is to see whether the advantage outweighs the disadvantage. Dou Linping believes that in promoting high-efficiency lighting, energy savings far outweigh the mercury pollution issue. He introduced that in this year's high-efficiency lighting promotion policy, the government strictly requires that products from winning bidders use amalgam or mercury capsules, with mercury content not exceeding 1.5 milligrams. Some companies have also further improved the outer shell of energy-saving lamps, making them less likely to break and preventing mercury from polluting the air or soil.
Regarding the awkward problem of energy-saving lamp recycling, Dou Linping pointed out that currently, the government requires energy-saving lamp enterprises participating in national bidding to establish a recycling mechanism and provides subsidies for them; while for general enterprises, an advocacy approach is adopted. Because the recycling system covers collection, transportation, storage, preservation, processing, and other aspects, involves a wide scope, covers many fields, and requires certain funds, it cannot be accomplished without a sound system and guidance.
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"Trade-in" encourages consumers to develop recycling habits
Last year, Shilihe Lighting City launched a "trade-in" campaign to encourage consumers to recycle used energy-saving lamps, collecting nearly 5,000 old units and setting up a long-term recycling point within the sales venue. Tian Min, Standing Deputy General Manager of Shilihe Lighting City, told reporters that energy-saving lamps are now widely used by consumers, but most consumers are unaware of the hazards of casually discarding them. As a professional lighting marketplace and enterprise, it is both an obligation and a responsibility to establish a professional recycling mechanism.
Tian Min also stressed that recycling requires professional treatment equipment and processing capabilities, and that few enterprises currently meet these conditions. Corporate initiatives also need the joint support of consumers and the government. In addition to actively improving and strengthening the recycling system, it is also necessary to carry out publicity and promotion, so that consumers understand the significance of recycling and the hazards of not recycling, learn about collection points, and know where to send their used energy-saving lamps, rather than being at a loss about how to handle them.
A relevant Philips spokesperson also noted that, currently, the results of recycling carried out individually by each company are not entirely satisfactory. On the one hand, enterprises should strengthen publicity on recycling and actively innovate in recycling models, such as exploring further cooperation with dealer networks, third-party networks, residential communities, bulk-user entities, etc., to expand coverage and better improve the recycling of energy-saving lamps. On the other hand, if the state were to centrally establish recycling and treatment mechanisms, it would benefit the entire industry in improving the recycling effectiveness of energy-saving lamps and protecting the environment.
In response, relevant industry insiders have suggested that the recycling of used energy-saving lamps could follow the practices of European and American countries, with subsidies provided to both enterprises and consumers. Given that energy-saving lamps are fragile and long-distance transportation should be avoided, recycling points and processing facilities could be set up in major cities.
Incandescent lamp
An incandescent lamp is an electric light source that heats a filament to an incandescent state by electrification, emitting visible light through thermal radiation.
Advantages: low price, wide range of uses, high lighting quality.
Disadvantages: high power consumption, limited service life.
Price: ordinary light bulbs cost about 1 yuan each.
Lifespan: The average lifespan is approximately 1000 hours.
Energy-Saving Lamp
An energy-saving lamp is a lighting device that integrates a fluorescent lamp with a ballast (stabilizer) into a single unit. Its size is similar to that of an incandescent lamp, and the lamp base interface is also the same as that of an incandescent lamp.
Advantages: Energy-saving, environmentally friendly, and low heat radiation. Energy-saving lamps have high luminous efficacy, consuming less energy at the same illuminance level.
Disadvantages: Energy-saving lamps have poor switching performance. When used in situations with frequent on/off switching, their lifespan will be drastically shortened. Recycling poses certain difficulties.
Price: A common 12W energy-saving lamp costs about 20 yuan.
Lifespan: Standard energy-saving lamps have an average lifespan of over 5,000–8,000 hours, with high-performance ones reaching over 10,000 hours.
LED Lamp
It is the abbreviation of the English term "light emitting diode" (light-emitting diode). Its basic structure consists of an electroluminescent semiconductor material mounted on a lead frame, then sealed all around with epoxy resin to protect the internal core wires. Therefore, LEDs have excellent shock resistance.
Advantages: High efficiency and energy saving, long lifespan, rich colors.
Disadvantages: Suitable for landscape lighting, but still falls short in basic lighting; not suitable for places with high requirements for luminaire performance and lighting quality, such as schools and hospitals.
Price: The price is relatively high, generally over 100 yuan.
Lifespan: LED lamps generally have a lifespan of more than 50,000 hours.
Electricity Savings Calculation
Energy-saving lamps save about 80% of electricity per month.
Based on a basic floor plan with two bedrooms, one living room, one kitchen and one bathroom, take a household using 15 regular 40W bulbs as an example. To achieve the same lighting effect, only 15 energy-saving 8W bulbs are needed. Assuming the 15 bulbs are used on average 5 hours per day, the daily electricity cost difference is calculated as follows. (Assumption: electricity rate 0.5 yuan/kWh, 1 kWh = 1000 W/hour)
Monthly electricity cost of regular bulbs:
15 bulbs × 40W/bulb × 5 hours/day × 30 days = 90000 W/hour = 90 kWh
Monthly electricity cost = 90 kWh × 0.5 yuan/kWh = 45 yuan
Monthly electricity cost of energy-saving bulbs:
15 lamps × 8W/lamp × 5 hours/day × 30 days = 18000W/hour = 18 kWh
Monthly electricity bill = 18 kWh × 0.5 yuan/kWh = 9 yuan
Using energy-saving lamps, monthly electricity bill savings:
45 yuan - 9 yuan = 36 yuan
Annual electricity bill savings:
36×12=432 yuan