By BizLED Bureau
May 13, 2015: With prices of LED sliding continuously, LED lighting may enter the rural market within the next three years. This will lead to wider penetration of LED lighting and eventually leading to manifold jump in its sales, says Amritanshu Khaitan, managing director, Eveready, a dry-cell battery manufacturer in India that has recently entered the LED lighting market.
“LED is still an urban phenomenon, and will remain so for the next 18-24 months. But the way LED prices are coming down, LED lighting will soon penetrate rural India,? he said.
However, Khaitan believes that the new entrants are entering the market with very low-priced products, which is disrupting the whole market. As a result, the bigger companies find it difficult to bring down their quality product at such low price. Prices of LED lighting products will further drop by 30% this year, he said.
“The lighting industry always believed in high MRPs and high margins for the retailers. This is changing. We brought down prices in stages. A typical LED bulb (5W) was selling at Rs 600 in September, it dropped to Rs 449 and to Rs 375 now, forcing much of our competition to follow bringing their prices to Rs 400 level. In the coming days we will see another 25-30% drop in prices,” Khaitan said.
E-commerce sites are offering LED lighting products at even cheaper price. For example, the Rs 375 Eveready bulb is being offered by popular e-commerce sites at Rs 273.
“We set our prices for e-commerce so that the retailers are not annoyed being forced to sell at a loss. Whether they give discount over that price is their call. During the highly publicised limited day sales, discounts are high and we can’t control that,” he said.
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