Uae led market
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Transcript of Uae led market
By Azhar Mohammed, Dated : 26/04/2014
United Arab Emirates Annual
Meeting 2014 April
Scope of Presentation
Analysis on increasing potential of LED luminaries in UAE market ,evolving trends and market scenarios for studying a prospective adoptability of LED Lighting business in HYDRATECH,Dubai.
By Azhar Mohammed,
Dated : 26/04/2014
United Arab Emirates
LED Luminary Market study in UAE
Objective
To Identify Define and Analyze factors influencing the LED luminary segment in UAE market.
Influencers (Variable/ Non
Variable)
Trend analysis
Market Understanding
( Competition study )
Market Entry
( Market opportunity/Threats/
Entry constraints )
Industry Specifics
LED Luminary Market study in UAE
Influencers and their trend
•To identify all influencing factors effecting the potential of LED luminary industry in UAE market. •To analyze the trend of 360 degree forces acting in the market
Social Economical
Legal Political
•Economy•Imports•FDI
•Political Stability•Foreign Relations
LED Luminary Market study in UAE
•Legal System•Legal reforms
•Demography•Education•Geography
Social
Demography•Population growth 2.87%.•Immigration rate is 15.1migrants/1000 population .•61.1% of age group 25 to 54 years•34.4% of age group 0-24 years
Education•Literacy rate 77.9 % average( India 61%)
Geography•Irrigated land 1000 sq KM from total area of 83,600 Sq KM. (population concentration)
Social Economical
Legal Political
•Demography•Education•Geography
•Economy•Imports•FDI
•Political Stability•Foreign Relations
“---------SOURCE(http://www.indexmundi.com/united_arab_emirates/population_growth_rate.html)
LED Luminary Market study in UAE
•Legal System•Legal reforms
The growth rate is a factor in determining how great a burden would be imposed on a country by the changing needs of its people for infrastructure (e.g., schools, hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs.”
EconomicalEconomy•GDP - per capita (PPP): $49,800 (2012 est.) •GDP growth rate-4.4% est 2012•Inflation 0.7%(est 2012)•UAE Lighting Industry : $ 336 Million (2013)•Expected growth : 15% over 2013
ImportsImports $220.3 billion (2012 est.) Imports ranking :25th by valueImport partnerIndia 17%, China 13.8%, US 10.5%, Germany 5.2%, Japan 4.2% (2012)Industrial production growth rate: 4.2% (2012 est.)
FDI 2013 : 12 billion USD2014 : 14.4 Billion USD
Social Economical
Legal Political
•Demography•Education•Geography
•Economy•Imports•FDI
•Political Stability•Foreign Relations
• http://gulfbusiness.com/2014/01/uae-attract-14-4bn-fdi-2014/#.U1jLSFWSzIc
LED Luminary Market study in UAE
•Legal System•Legal reforms
• http://www.middleeastelectricity.com/en/IndustryNews/LightingIndustryNews/UAE-lighting-industry-to-grow-by-15pc-in-2014•http://www.bqdoha.com/2013/07/uae-growth-prospects-positive-says-imfsuffix_a
Projected growth rate of 15% for lighting industry for the year 2014 indicates a huge potential for LED market in UAE.The UAE’s short- and medium-term growth prospects are positive and external downside risks, while still substantial, have declined, according to an IMF country report. The non-oil economy is projected to expand by over 4 percent per annum.
Legal
Legal system•mixed legal system of Islamic law and civil law•Not submitted an ICJ jurisdiction declaration; non-party state.•Legislative branch elections: last held on 24 September 2011 (next to be held in 2015)
Legal reforms •Strong laws pertaining to development .Political reform drafted have strong inclination towards UAEs strong willingness to develop its economy- http://www.thenational.ae/business/industry-insights/economics/draft-law-outlines-insolvency-reform-for-the-uae
Social Economical
Legal Political
•Demography•Education•Geography
•Economy•Imports•FDI
•Legal System•Legal reforms
•Political Stability•Foreign Relations
http://www.indexmundi.com/united_arab_emirates/legal_system.htmlhttp://www.greenprophet.com/2014/02/dubai-abu-dhabi-ban-high-energy-incandescent-light-bulbs/#sthash.z4Gjninm.dpuf
LED Luminary Market study in UAE
After July 2014, the United Arab Emirates (UAE), one of the world’s largest oil producers, will no longer import high energy incandescent light bulbs. And by the end of the year, it will be impossible to buy them
Political
Political Stability
•Political system: federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates.•Political pressure group: Listing of political, social, labor, or religious organizations with leaders involved in politics, but not standing for legislative electionForeign relations •Stable relation with west and other GCC countries. Hosts UNDP in UAE.
Social Economical
Legal Political
•Demography•Education•Geography
•Economy•Imports•FDI
•Legal System•Legal reforms
•Political Stability•Foreign Relations
http://www.indexmundi.com/united_arab_emirates/legal_system.htmlhttp://www.emirates247.com/business/uae-is-model-of-political-stability-think-tank-2011-09-06-1.417092
LED Luminary Market study in UAE
Strong political stability in UAE compared to other countries in GCC has lead to a convenient growth in economy after the winning of World 2020 Expo.The UAE has become a model of political stability at a time when some nations in the region are witnessing unrest despite the presence of a large foreign community in the country
LED Luminary Market study in UAE
360 degree 5 force analysis for determining Entry barrier
in UAE Market
LED luminary market in UAE is not new, there are numerous no of players in UAE . The potential of the market is observed by all aspirants. This exercise helps untie the factors effecting us in
the market.
Existing Competition
Threat from New entrants
Bargaining power of
Customers
Threats of substitute products
Bargaining power of Suppliers
LED Luminary Market study in UAE
Existing Competition
•The players operating in UAE market create a barrier to entrance . Current players in the market is limited to meet the demand of luminaries in the market. In this scenario it will be easy to capture a market for Hydratech.
•LED lighting industry is leading its promises on Green lighting, Energy efficient lighting, Designer lighting and now it has entered into Industrial segment
Existing Competition
Threat from New entrants
Bargaining power of
Customers
Threats of substitute products
Bargaining power of Suppliers
Major Brands in UAE
•Osram-German •Havells Sylvania-India•OMS –UK•Hubbell –USA•Philips- Netherlands•Lucent-UK•Filix-USA•General Electric -USA
Major lighting retailers in UAE
•Huda lighting•Universal Lighting•Lite –tech Lighting•Led World•Nakshi•Chinmar Lighting•Cree Lighting
Construction sector
$ 44 billion awarded in UAE in 2013 $ 10 billion completed in 2013.$ 50 billion awarded in 2014
Only 11% of construction value is completed.
The huge growth rate in the construction sector has lead to an increased demand of electrical fittings leading to a increased no: of fit out companies popping up in the market . UAE government steps to restart the unfinished construction works has added fuel into the trend.
http://www.hadefpartners.com/News/pageid/120-137/default.aspx?mediaid=207
LED Luminary Market study in UAE
New Entrants
•A number of players has entered into Lighting industry in UAE in various segments and brands.•Government of UAE has regulated the standards required for lighting with collaboration with ESMA –Emirates Authority of Standardization and metrology
Existing Competition
Threat from New entrants
Bargaining power of
Customers
Threats of substitute products
Bargaining power of Suppliers
UAE certification for Lighting Im[ports
• Product certification for Direct Market Access-ESMA• Dubai Central Laboratory Certificate• Abu Dhabi Quality and Conformity Certificate(QCC)• Safety test report from Dubai Quality center
Entering into UAE is been regulated by UAE government.In spite of these regulations plenty of Lighting products are imported into UAE and are available in market.
LED Luminary Market study in UAE
Threat from substitute products
Government has brought standardized specifications for Lighting products but in UAE market alternate products with lower quality is also available .
Existing Competit
ion
Threat from New entrants
Bargaining power of
Customers
Threats of substitute products
Bargaining power of Suppliers
Leading to high price of the LED lighting, low quality products which are not as per the UAE regulations are also available in the market. These materials have a lower lifespan .Government regulations has not yet taken a strong grip on these market. Abu Dhabi have already Standardized the interior lighting through ESMA
LED Luminary Market study in UAE
Few brands proposed
• VINled- India's 4th largest LED manufacturer• Lingman Lighting-Thailand• IST lighting Group-UK• Brillianz Lighting-UK
LED Luminary Market study in UAE
Appendix
LED Luminary Market study in UAE
Thank you