Affected by the EU's three directives WEEE, RoHS and EUP, the orders of most companies in Europe have also been reduced. Some companies with relatively weak competitiveness have even given up on European markets.
Too many companies are struggling
On January 1, 2006, the WEEE Directive (Waste Electrical and Electronic Equipment Directive) came into full force; the implementation of the RoHS Directive (the Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment) on July 1, the same year, means that it is placed on the EU market. The 8 products must not contain 6 kinds of harmful substances such as lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers. On August 11 this year, the EU officially implemented the EUP directive, which covers all energy-using products and involves The complete life cycle from design and manufacture to use, maintenance, recycling and post-processing. According to the statistics of the Preparatory Committee of the Fair, although the current Expo has attracted nearly 6,000 foreign professional buyers to come to the exhibition, the lack of a large number of European buyers is an undeniable fact. Under the influence of the Chinese market, some Chinese lighting companies are losing.
An exhibitor's business representative told reporters that export companies in the industry had to introduce tens of thousands of testing equipment in order to respond to the instructions. At the same time, some enterprises had to re-select suppliers to ensure that the products meet the RoHS directive requirements. In the case of increased costs, corporate profits have been greatly reduced, and some companies have to give up some orders, so as not to "do more and lose more." In the interview, many companies said that their products can meet the requirements of WEEE and RoHS. In order to meet the requirements of these two directives, they are exhausted, "not to mention the EUP."
Some companies have turned to Southeast Asian markets
Located in the Cao Sanzhuwei Industrial Zone of Guzhen Town, Zhongshan Laiya Lighting Appliance Co., Ltd. is a lighting enterprise specializing in foreign trade. Its overseas clerk Li Zhuzhu bluntly told reporters: “After the EU RoHS Directive came into effect, the company purchased a set of testing equipment. Controlling the production process, the production cost has increased by 30% to 40% compared with the previous one. The European market has become a chicken rib for our company." Due to the lower profit in the European market, Laiya Lighting currently mainly develops the Middle East and Southeast Asia markets. The possibility of entering the domestic market is not ruled out.
As a well-known brand in China, the head of the sales department of NVC Lighting also told reporters that the implementation of several restrictive directives in the EU also has an impact on enterprises. In terms of technological transformation and purchase of related testing equipment, it is necessary for the company to carry out large Investing, the person in charge also believes that the EU's restrictive policies have contributed to the competitiveness of some strong companies in the industry to a certain extent.
â– Industry
Competition will drive industry development
Looking back on the development of the lighting industry in recent years, Lu Congxin, the secretary general of the Guzhen Lighting Association, has the biggest feeling: “The competition is getting more and more fierce, and the industry profits are getting less and less.â€
Business is not good, but it is still going to be done. Lu Congxin analyzes the current basic pattern of China's lighting industry: "Although the export volume of Chinese lighting products is large, the domestic market is also very large, and it can be grasped. The domestic market can also occupy an important position in the entire industry.†Lu Congxin acknowledged that the establishment of technical barriers in Europe has indeed raised the threshold for Chinese lighting products to enter the European market, and also saw that the competition in the European market is far higher. In the domestic market, “If our company can successfully occupy the European market and not fall into the competition with these international brands, it will inevitably lead to the development of the entire domestic industry, and this work requires domestic large enterprises to do.â€
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