Lighting Engineering 2015: What is the situation in the market at present?
Interview with Vadim Valeryevich Dadyka, Director General of AtomSvet, LLC
The year 2015 has begun, and many consumers have not yet recognized what is happening in the LED products market. Is it possible to describe the current situation?
The most significant factors that have a direct impact on the lighting market are widespread disinvestment in key industries of the Russian economy. Accordingly we observe some decline in demand for industrial LED luminaires – one of the main segments of LED products that, at the year-end 2014, corresponded to 15-20% of the overall LED lighting market. Besides the market was greatly influenced by currency fluctuations that led to major increase in consumer prices from many manufacturers. In general, on an annual basis we expect the maximum decline in demand for industrial LED luminaries in the engineering industry sector (except for enterprises of the military industrial sector), while the demand in the oil and gas, and in the chemicals sector will be affected to a lesser degree.
There are several types of lighting: beginning with office lighting and ending with architectural. Where does AtomSvet position itself in the market?
The largest and the most advanced business lines are considered to be industrial and street lighting systems. This segment is rather knowledge-intensive and requires a sound engineering knowledge. The segment is open to competition with high-quality equipment, and the market in this sphere is formed by customers who are more competent and thus able to assess the required parameters and the prices. Especially since we offer all lighting equipment meant for a wide range of temperatures -60… +60, so the consumer does not need to specify or pay extra for a specific climatic category. The segment of domestic, office and architectural lighting is no doubt very large but it is affected significantly by counterfeit goods with low prices. As a result it is impossible to compete with such products and immersion in this market makes no sense. This is probably the reason why this market sector has remained unchanged for a long time, and one doesn’t see a way out. A possible way out of the current situation is development of a certification system in our country as well as product quality control with the support of the State.
How can the quality of a luminaire be determined having only a luminaire itself and the seller’s assurances of its absolute reliability? What documents and certificates can bear out what suppliers say?
Nowadays the reputation of the company in goods and services is becoming a determining factor in the ability to compete in the market. Judging by the dynamics it will soon be impossible to market or to sell products in Russia without certificates. The importance of certification in particular for lighting products shouldn’t be underestimated. Namely, quality certificates are seals of quality that let a consumer know that the product really is good. Moreover the consumer has become more demanding, and he knows companies that perform audits and laboratory analyses. Therefore the requirements for goods purchased have been increased as well as the certifying authorities have placed increasingly tougher demands on products and their testing. As to AtomSvet, we regularly certify our products’ conformity with quality standards, including international ones. Nowadays AtomSvet is the sole Russian manufacturer whose products have CE and GS certificates on industrial LED lighting fixtures. As a certifying authority, AtomSvet has selected the German division of one of the major European companies, TÜV SÜD. An independent organization, it was founded in 1866 and is one of the leading international agencies providing engineering services. These days the company works hard in certifying the compliance of AtomSvet® Plant Ex explosion proof LED luminaires with the requirements of the ATEX international system. Moreover, AtomSvet regularly undergoes audits of its management system in accordance with the international ISO 9001 Standard.
If you look ahead in the long term, what are the plans of your company: development, modernization, outut of new products…?
All of the above. We are planning to develop the existing range of industrial luminaires for industrial sites with severe and extremely severe operating conditions. The main lines of development are considered to be elaboration of “platform” type lighting solutions that will help to adapt products to the needs of a particular consumer with ease. Road luminaires intended for lighting of city roads and highways of all classes are a new type of product for us. Another business line we are planning to develop is a greenhouse LED lighting. We believe that LED lighting will force high-pressure gas discharge lamps out of the market as the spectrum of LED luminaires can be easily adapted to the various needs of agricultural plants and significantly reduce electricity consumption.
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