Brazilian lighting market analysis

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1. Country profile

The Federative Republic of Brazil is the largest country in Latin America. The country covers an area of ​​8.55 million square kilometers, ranking fifth in the world; its population is 205 million, ranking fifth in the world.

Its petroleum, iron ore and other natural resources are abundant, and industries such as aviation manufacturing are more developed. It is currently the eighth largest economy in the world, ranking first in Latin America and one of the BRICS countries. However, in recent years, the prices of international commodities have continued to fall in recent years. Brazil’s “consumer economy”, which relied on government subsidies, has disintegrated, triggering a large-scale economic crisis, and the BRICS countries are no longer.

Brazil is also the eighth largest power consumer, with an installed capacity of approximately 166,096 megawatts, and lighting power accounts for about 15% of the total social electricity consumption.

2. Overview of the local lighting industry

Brazil's light industrial consumer goods manufacturing industry is relatively underdeveloped, and domestic consumer goods tariffs are also higher. There are about 800 lighting companies throughout Brazil, with fewer manufacturers and more importers, producing only about 14 million lighting fixtures per year.

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Ourolux, Taschibra, Stella, Blumenuau, Empalux, Flc, Brilia, etc. are local big names. Chinese companies such as Galaxy, Avant and OL are flourishing. NVC is gradually gaining a foothold in Brazil. International brands such as Philips, Osram and Sylvania are in Brazil. The market also has important seats. GE last year drew a sleeve in the Latin American market and did not take away a cloud. In terms of street lights, Repume purchased light sources and modules, and completely made the lamp shell and poles.

3. Local lighting market and application

(1) Overview

In the entire Brazilian market, home decoration lighting accounts for about 25% of the market share, commercial lighting accounts for 20%, industrial lighting accounts for 15%, outdoor lighting accounts for 13%, and architectural lighting accounts for 12%; and in the largest proportion of home decoration lighting The category mainly consists of about 10% of wall lamps, about 9% of chandeliers, about 9% of ceiling lamps, about 7% of desk lamps and about 5% of downlights.

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(2) Replacement of light source

Brazil ranks second in China's LED replacement light source products export destination, second only to the United States, fluorescent light sources and other light source products are also among the best in export destination countries. It is consistent with the fact that in actual market applications, light sources are also the mainstay, and the application of integrated lamps is relatively small.

(3) prefer high color temperature

80% of Brazil's land is located in the tropics, and a small part of the remaining southern land is also located in the subtropical zone. Therefore, it is different from the European and American markets in terms of consumption habits of lighting products, and prefers high color temperature products.

For indoor lighting applications, fluorescent lamps are highly popular with overheated radiation sources, and high color temperature LEDs are also more widely used; outdoor lighting applications are different from most national markets, and metal halide lamps with relatively high color temperatures account for more than high-pressure sodium lamps. High-pressure mercury lamps also account for a considerable proportion.

(4) Brand market share

In the lighting market and practical applications in Brazil, OSRAM brand products have a relatively obvious advantage, followed by PHILIPS, followed by local brands such as Ourolx, Taschibra, Brilia and so on.

(5) The filament lamp is in the ascendant

At the 2018 Brazil exhibition, it can be seen that almost all of the local lamps and lanterns used a large number of LED filament lamps in the display products, similar to the situation in the Frankfurt exhibition in March, and the flexible filaments gradually entered the room.

With the further improvement in the price/performance ratio of LED filament lamps, there will be a round of opportunities in the price-performance matchup between the Brazilian market and SMD bulbs.

4. PPP transformation of local street lamps

There are a total of 18.5 million street lamps in Brazil, of which about 40% are metal halide lamps, about 30% are high pressure sodium lamps, about 20% are high pressure mercury lamps, and LEDs only account for 5%, which has a large replacement potential.

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It is understood that Brazil's first LED streetlight retrofit PPP project was carried out in Belo Horizonte, the capital of Minas Gerais State, with approximately 20,000 LED street lights with a 20-year return period. The number of street lights in major cities is also considerable. For example, the first big city of São Paulo has about 700,000 street lights, the second largest city of Rio de Janeiro has about 450,000 street lights, and the ninth largest city of Campinas has 110,000 miles. Street light.

Although governments around the country are faced with the need to promote the replacement of LEDs for street lamps, they also have COSIP (that is, they charge the local residents a full monthly electricity fee and hand it over to the local government for funds for public lighting services. This is a stable The source of funds, does not occupy the municipal budget resources.) The system, but the funding gap is still large, so it is eager to use the PPP model to attract social funds to complete the street lamp replacement project.

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The PPP model of lighting engineering has a strong "political economics" color in the author's view. It has corresponding risks in various aspects such as pre-project, medium-term investment and post-return, even in China, it is in the initial stage of exploration. The success of the PPP model is closely related to stable government construction. In Brazil, the political situation is not stable enough, the government is less efficient, the corruption problem is prominent, and the change is more frequent, which is not conducive to PPP projects based on medium and long-term returns. Therefore, it is suggested that all Chinese lighting companies that are expected to participate in the Brazilian PPP lighting renovation project should clarify the advantages and disadvantages, weigh the pros and cons, and be cautious.

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In April, the local media exposed the scandal of the director of the Public Lighting Administration of São Paulo receiving a 10% rebate from the winning bidder, which caused the São Paulo streetlight project, which had been stagnant for two years, to be suspended again.

5. Market access

(1) Relevant standards

1. Light source related standards and specifications:

Technical regulations (mainly product safety, electromagnetic compatibility and energy efficiency):

PortariaINMETRO 389/2014 and PortariaINMETRO 143/2015

Conformity assessment criteria (for importers, manufacturers and retailers):

PortariaINMETRO 144/2015

Supplementary specifications (mainly to extend and adjust the time limit in the 144/2015 standard):

PortariaINMETRO 76/2016 and PortariaINMETRO 221/2016

other:

ABNT/NBR adopts IEC60662:1997

HPS

ABNT/NBR adopts IEC60901:1997

Performance requirements for single-ended fluorescent lamps for general lighting

ABNT/NBR adopts IEC60968: 2014

Safety requirements for self-ballasted fluorescent lamps for general lighting

ABNT/NBR adopts IEC60969:2014

Performance requirements for self-ballasted fluorescent lamps for general lighting

ABNT/NBR adopts IEC61167:1997

Metal halide lamp

ABNT/NBR adopts IEC61195:2014

Double-ended fluorescent lamp safety requirements

ABNT/NBR adopts IEC62035:2014

Safety requirements for discharge lamps (excluding fluorescent lamps)

ABNT/NBR adopts IEC62560:2013

Safety requirements for self-ballasted LED lamps above 50V for general lighting

IEC61000-3-2

Harmonic current emission limit

CISPR32: 2015

Electromagnetic compatibility of multimedia equipment. Launch requirements

Note 1: INMETRO is the Instituto Nacional de Metrologia (Qualidade e Tecnologia);

Note 2: ABNT is the Brazilian Association of Standardization Technology (Associa??oBrasileira de Normas Técnicas).

2. Lamp related standards and specifications

PortariaINMETRO 20/2017

LED street light related specifications (HID and LED)

ABNT/NBR5101:2012

Public lighting

ABNT/NBR adopts ISO/CIE8995-1:2013

Workplace lighting - Part 1: Indoor

ABNT/NBR adopts IEC60598-1:2010

Luminaires - Part 1: General requirements and testing

ABNT/NBR15129:2012

Lighting for public lighting - special requirements

ANSI/IEEEC.62.41-2002

Recommended specifications for surge characteristics of low voltage (1000V and below) AC circuits

ABNT/NBR adopts IEC61643-1:2007

Low voltage surge protection device

IEC61000-3-2:2009

Electromagnetic Compatibility Limit - Harmonic Current (16A)

NBRIEC/CISPR 15 de 08/2014

Limits and methods of measurement of radio disturbance characteristics for lighting and similar equipment

(2) Relevant certification

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INMETRO certification, the National Institute of Quality and Technology of Brazil, is a national accreditation body for Brazil.

INMETRO certification is divided into mandatory and voluntary. For products subject to compulsory certification, the mandatory INMETRO logo must be printed on the product and packaging and the logo of a third party approved by INMETRO must be added to enter the Brazilian market.

1. Certification process

(1) Product family definition, after defining the product family class, the specific authentication mode can be known;

(2) Initial factory audit or sampling;

(3) sample inspection;

(4) Quality management system audit;

(5) Supplier review (including pre- and post-);

(6) Issue a certificate.

2, the certification mode

Including one-time certification, batch certification, market certification, factory certification, dual certification, etc.

In general, the certification of the Brazilian market is cumbersome, time consuming, costly, demanding, and serious violations.

(3) Energy efficiency label

1. Energy Efficiency Labeling Program (PBE)

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The Brazilian Energy Efficiency Labelling Program (ProgramaBrasileiro de Etiquetagem, PBE) originated in 1984 with the intervention of the Brazilian Ministry of Industry and Energy (MME) and the Brazilian Ministry of Industry and Trade and the Brazilian Electronic Power Industry Association (ABINEE). The plan became a mandatory energy efficiency labeling scheme based on the National Energy Conservation and Rational Use of Energy Act of October 2001 and Act No. 4059 issued in December of the same year.

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Similar to the EU's energy label, the Brazilian PBE energy efficiency label includes information on the manufacturer's name, trademark, product model, power consumption and product characteristics in addition to the energy efficiency rating (from the highest energy efficiency class A to the lowest energy class G). The test must be completed by INMETRO's authorized local laboratories in Brazil and cannot be carried out in China. In addition, you must apply directly to INMETRO by a Brazilian legal agent or actual importer.

2. National Electric Power Saving Plan (PROCEL)

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The PROCEL logo program is a branch of the PBE program. In 1985, Brazil passed Resolution 1877 to launch the National Electricity Conservation Program (PROCEL), and the Presidential Decree passed on December 8, 1993 officially launched the PROCEL program. The PROCEL program was proposed by the Brazilian Ministry of Mines and Energy (MME), coordinated by INMETRO and now managed by the Brazilian Electric Power Company (ELETROBRáS).

The PROCEL logo is an energy-saving certification mark. The receipt of this mark on electrical products means that electrical equipment achieves the optimum level of energy efficiency and consumes less energy. Issued annually to electrical products that have achieved a higher level of energy efficiency and meet statutory requirements.

The PROCEL program is voluntary, and participating organizations and vendors will conduct energy efficiency tests on products. After the product is tested, the management agency will develop a standard based on the results, and then classify the equipment according to the standard, and these tests will be carried out regularly, and the standards will be updated accordingly. According to the products that currently perform best in terms of energy consumption standards, the products that have been tested and judged to be the best performers in this category will receive the PROCEL certification mark. After a period of implementation or review, there will be up to 25% or more energy efficient products in each category. According to the requirements of the National Energy Conservation and Rational Use of Energy Law, the PROCEL logo voluntary certification program began to be converted into compulsory certification.

(4) Customs duties

A wide range of taxes includes federal import duties, industrial product taxes, social integration taxes, social security fees, and state government goods circulation service taxes. The total cost of all lamps and exports to Brazil can eventually exceed 100%.

(5) Others

The thresholds for lighting products to be exported to Brazil include: a manufacturer's statement signed by the chairman or CEO; the product must fully comply with the relevant safety and technical requirements of INMETRO and ABNT; product samples must be submitted to a locally accredited laboratory for testing (eg INMETRO, ILAC); the supplier will be fully responsible for the failure of the product, all non-compliance will be communicated to the factory and importers by the market management and the media, and the problem factory will be banned from entering the Brazilian market for two years.

6. Lighting products exported to Brazil

(1) Overview

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As a BRICS country, Brazil is currently the number one market for lighting products exported to Latin America. Under the premise of a considerable amount of growth, the growth momentum is also significant. The lighting market, especially the LED lighting market, has experienced rapid development in recent years due to the power saving demand brought by the rising electricity price. In addition, there is not much lighting product manufacturing capability in the local area. It has also become a growth point for many export companies.

In 2017, all of China's exports to Brazil exceeded US$900 million, a record high, with LED lighting products reaching US$500 million. China's exporters of lighting products, Debon, Meike, Lidaxin, Sunshine and Kay Yao, all have good performances in the Brazilian market.

(II) Export of major traditional light source products

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Traditional light source products:

In terms of heat radiation sources, in the context of the global phase-out of high-energy incandescent lamps, Brazil has also implemented the ban on incandescent lamps in 2014. Incandescent lamps have basically shown a downward trend; tungsten halogen lamps have slightly wavered, but the unit price has been falling. Cost-effectiveness is a key factor when energy efficiency is not considered.

Fluorescent lamp products are basically consistent with global trends. In recent years, due to the gradual replacement of LED lighting products, they have entered the fast down range. The reality is that in some market environments, LEDs have not completely destroyed the life of high-energy incandescent lamps, but they have taken the lead in eliminating the life of fluorescent lamps.

In terms of HID products, the quantity and amount in recent years are in a downward trend. The high-pressure sodium lamps, which are still mainstream products for outdoor lighting, are relatively better. The price of HID as a mature product has been falling all the way, and it also reflects the direct impact of LED products on the price of HID products.

(3) Export of lighting products

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In 2011, two types of lighting products, which mainly reflected the strong market demand, in addition to the decline in global market demand, led to a decline in 2016, other years showed a relatively strong growth, reflecting Brazil as a populous country and rapid development Relatively strong demand for consumer goods in brick countries.

(4) Export of LED lighting products

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In terms of LED lighting products, similar to lighting products, in addition to the decline in global market demand, the rapid growth in other years is evident in 2016.

In 2017, for example, in the LED replacement light source products, China’s exports to Brazil amounted to 255 million US dollars, surpassing the German, British, French and Japanese majors, ranking second in export destination countries, second only to the Wannian United States, and also reflected Its lighting market is based on the replacement of light source consumption. In the export of all LED lighting products, Brazil is also the fifth highest level, with an increase of more than 120%.

7. Local professional lighting exhibition

Brazil São Paulo International Lighting Exhibition (EXPOLUX)

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Exhibition cycle: two years (since 1988)

Exhibition time: double years in April

Venue: ExpoCentre Norte, Sao Paulo, Brazil

Organizer: Reed Exhibitions & Brazilian Lighting Industry Association

Market-oriented: Brazil and Latin America

Exhibition scale: 330 exhibitors with an exhibition area of ​​40,000 m2 (2018)

Exhibition situation:

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In the 2018 exhibition, local exhibitors in Brazil were mainly local lighting brands. Except for companies such as Taschibra, Sylvania, Stella and Pamplona, ​​local brands such as Ourolux, Galaxy, Empalux, Avant, Flc and Brilia failed to appear. It is reported that it was because not long ago Has participated in the local building materials exhibition. LED device giants Nichia and Osramos are both stationed. There are about 220 Chinese exhibitors in all exhibitors, accounting for 2/3 of the total. Among them, Mulinsen, Maoshuo, Infineon, Xuelaite, Yusheng, Mingwei, Dark Energy, Wanrun, Shengpu, Kangshuai and other well-known domestic enterprises have appeared in the special exhibition image, including StarCraft, Hailai and Thai. Gee, Qiancheng, Shenghui, Meike, Chengyu, Fangda, Greenman, Jinghe and other enterprises participated in the exhibition.

Overall, as the largest lighting market in Latin America, Brazil is still very attractive. The exhibition is also the leading platform for the exchange and market development in Latin America. Although the exhibition is not popular, it is still the focus of enterprises that are trying to enter the Brazilian market. attention.

8. Local industry organizations

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The Association of the Brazilian Lighting Industry (abbreviated Abilux) is a national organization of the Brazilian lighting industry. It was established in October 1985 and has about 100 local member units. The working committees include: energy saving, environmental protection, legal affairs, Taxation, training, public relations, standard regulations, foreign trade, etc.

Abilux's main activities include the hosting of the biennial Brazilian International Lighting Exhibition (EXPOLUX), which also hosts the Brazilian High-Efficiency Lighting Forum (SIMPOLUX) and the Lighting Design and Lighting Design Awards. In addition, Abilux is also committed to the “LuxBrazil” project to promote Brazilian lighting products to the international market.

The association is a member of the Global Lighting Association (GLA) with the China Lighting Association (CALI). Brazilian Association website:

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In addition, there is a Brazilian Lighting Importers Association (Abilumi), the association's website

9. Conclusion

Brazil, as a BRICS country, is also the number one market for Chinese lighting products exported to Latin America. The potential is also considerable, but high tariffs, strict thresholds, complicated procedures, risky markets and lower prices still make a lot of Export companies are discouraged.

The Brazilian street lamp PPP renovation project, which was once focused on Chinese lighting companies, seems to be inconsistent with the current situation, the government is not efficient enough, the corruption problem is prominent, and the government changes are more frequent in Brazil, especially the complex relationship. Cities, investment participation is still a big risk. Therefore, it is particularly suggested that all Chinese lighting companies that are expected to participate in such projects must be cautious after detailed investigation and in-depth understanding.


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