Global market intelligence organization TrendForce’s research division EnergyTrend and Consumer research division AVANTI joint research results showed that only 25% of average Chinese consumers had a clear knowledge of LED bulbs. If LED lighting wants to popularize their products, the key is through increasing consumer awareness.
The research was initiated by LEDinside with AVANTI conducting a survey with over 3000 online participants. The current information collected is used to understand the average consumer awareness of LED luminaries, consumer buying habits, purchasing channels, brand recognition, and other factors that can influence the purchase of luminaries. The survey results show that out of 3000 people, 63% had clear knowledge of energy saving lights, 53% for incandescent lights, while only 25% had clear knowledge of LED lights.

【Chart 1】Consumer LED Light Bulb Awareness for the Chinese Market

Source：LEDinside, AVANTI

During the past few years with the environmental protection and energy saving trend growing, LED has been embraced by businesses and public lighting. However, the permeability rate for household lighting has not been as high. According to LEDinside predictions for 2012, household lighting only makes up 1% of all luminous flux demands for LED lighting.

【Chart 2】Permeability Rate of China LED Lighting

Source：LEDinside

The research shows that the reason for such a low rate of permeability is due to consumer awareness. The common consideration for the business world is whether or not LED’s light source can surpass that of traditional lighting. Assuming that the above participants in the survey are rationally minded, have an ample amount of information, and have the ability to clearly weigh pros and cons, then the best consumption plan was used. Yet, LEDinside’s investigation discovered that consumer awareness for LED is limited with only 25% actually having knowledge of LED bulbs. However, the 25% who knew LED where still unclear about the benefit of LED bulbs, power capacity, and price. 55% of people incorrectly believed that the capacity was 11-20W（LED bulbs on the market are all 3W, 5W, 7W）.
With the plan to have about 4 billion luminaries in stock in the Chinese residential lighting market and permeability rate predicted to rise from 1% in 2012 to 15% by 2015, demand is expected to increase from 700 million to 1 billion with the next three years accumulated market capacity reaching 36.3 billion RMB. LEDinside believes that the key to opening up this vast market is clearly through increasing consumer awareness.

【Chart 3】Permeability Rate and Market Scale for China LED Residential Lighting （unit：100 Million RMB）

Source：LEDinside

LEDinside plans to hold their yearly LEDforum2013 starting next Tuesday (June 11th) at the China Import and Export Fair Complex in Guangdong China. This year senior managers from big names like Philips, Veeco, Epistar, Cree and others were invited to lecture about the market and technical levels. Also, LEDinside lead analyst Yuchao Chu and Chinese data analyst Feijiang Wang will give their expert view on the business aspect.
For further information, please visit our website: http://seminar.dramexchange.com/LEDforumChina/2013guangzhou/GB/agenda/