Light Bulbs & Tubes

China is one of the world's leading producers of light bulbs and tubes, exporting 8.6 billion units in 2004, up 36% from the year before.

Low price is the main factor driving this growth. In the face of intense competition, manufacturers are being forced to minimize increases despite soaring raw-material costs.

The result? Unparalleled sourcing opportunities at extremely low prices. But where do you start...and which suppliers are best positioned to meet your demands?

With in-depth supplier profiles, industry analysis, detailed specifications for top-selling export products and much more, this report gives you the answers.

What you'll get

Deep profiles of 15 major light bulb and tube manufacturers, including details on production capabilities, export capacities and future plans. Based on personal factory visits and interviews with senior managers, this information is available nowhere else.

Short profile tables of an additional 43 suppliers with key facts such as machinery used, export ratios and main export markets

A product gallery of 114 best-selling export light bulbs and tubes from mainland China and Taiwan, with detailed product specifications and full-color pictures

The results of Global Sources' latest supplier survey, forecasting price, product, production and R&D trends for the next 12 months

This report covers: fluorescent lamps, compact fluorescent lamps, incandescent bulbs and halogen bulbs

How you'll benefit

Discover the impact that the Waste from Electrical and Electronic Equipment (WEEE) directive has on exports to the EU

Obtain insights into producers' raw-material sourcing strategies and see how these impact the quality and pricing you're offered

Benefit from price guides targeting the main bulb types available and use them as benchmarks when you get in touch with manufacturers

Get quick-to-use summary listings covering all featured suppliers, with easy-to-compare statistics, as well as verified contact details

Executive summary

China offers an expansive selection of light bulbs and tubes with exports falling into three major categories: fluorescent lamps, incandescent bulbs and halogen bulbs. Almost 80 percent of 2004 shipments of 8 billion light bulbs and tubes were of incandescent bulbs.

The export value of all bulbs and tubes, on the other hand, grew 36 percent last year to reach $1.2 billion, 65 percent of which came from shipments of fluorescent lamps. The country is set for another strong year as early 2005 export figures already show an 18 percent increase over shipments in the same period last year.

Exports, particularly of fluorescent lamps, in the next 12 months will focus mainly on Asia, North and South America as China suppliers continue to minimize shipments to the European Union in light of a new EU directive that requires suppliers to provide deposits for the environment-friendly collection and disposal of electric and electronic products. Suppliers estimate compliance with the directive would entail an additional 10 percent in operating costs.

Some of the key developments we see in China's light bulbs and tubes export industry in the next 12 months include:

• The majority of suppliers will keep prices stable, and those that will raise quotes will limit them to 10 percent. To minimize the effects of rising raw material costs and shortages in power and labor, many manufactures are upgrading or automating production lines to save costs and improve quality.

• Most suppliers will be expanding capacity to prepare for increased demand from non-EU markets, although a few will rely on spare manufacturing capacity to meet any additional orders.

• Two key aspects of lamp performance will continue to top the list of R&D priorities of most makers as they move upmarket: service life and illumination. Suppliers that are focusing on niche markets will be developing high-power or special application models.

The Products & Prices section of this report discusses the main features of these three bulb types, as well as that of compact fluorescent lamps, a variation of standard fluorescent lamps that offer higher energy savings.

Various sourcing options for key parts such as glass envelopes, PCBs, lamp bases and filaments are discussed in the Materials & Components module.

The key production processes of light bulbs and tubes are basically the same, regardless of bulb type. Details about how these processes are typically done in China factories are discussed in the Manufacturing section.

China has more than 2,000 suppliers of light bulbs and tubes, the majority of which are private, locally owned companies. Only 10 percent of makers are foreign-invested or state-owned. The selection of suppliers profiled in this report reflects the composition of the industry: more than 75 percent are private, wholly China-owned companies, 12 percent are foreign-invested, and the rest are either state-owned or publicly listed enterprises.

The 58 suppliers featured in this report have an average monthly capacity of 1.5 million units. Five can produce more than 10 million light bulbs and tubes a month while another five have monthly capacity that exceeds 6 million units.

Industry overview

China's exports of light bulbs and tubes are on an upswing, with 2004 shipments soaring 36 percent over 2003 figures to reach US$1.2 billion. Overseas trade is showing signs of strong growth this year as initial figures have already risen 18 percent.

China's exports consist mostly of fluorescent lamps, incandescent and halogen bulbs. Exports, when studied in terms of volume, consist mainly of incandescent bulbs, which are the most mature products in the industry. In fact, close to 80 percent of the 8.6 billion light bulbs and tubes exported in 2004 were incandescent bulbs. Only 13 percent were fluorescent lamps and the rest were halogen bulbs.

However, when it comes to export value, fluorescent lamps are the biggest revenue earner, mainly because export prices of fluorescent lamps are much higher than incandescent bulbs. In 2004, for instance, China-made fluorescent lamps averaged US$0.68 apiece whereas incandescent bulbs were priced at only US$0.03 each. In the same year, the US$778 million worth of fluorescent lamps that China exported made up 65 percent of total shipments for the year. Incandescent bulb exports pale in comparison, accounting for only 19 percent of export value.

Fluorescent lamps have registered the highest growth rates among the various bulb types from China, growing an average 40 percent in the past several years. In 2004, suppliers exported 42 percent more fluorescent lamps than in 2003. Both incandescent and halogen bulbs, however, still registered 27 percent growth in exports last year. Leading exports in this product line are compact fluorescent lamps, aptly named because their smaller-than-usual constructions generate more light than conventional fluorescent bulbs.

CFLs are a booming business on their own with the supplier base now consisting of more than 1,000 makers churning out close to 1 billion CFLs annually, about 75 percent of total global output. Some makers of standard fluorescent lamps have already branched out into CFLs as the technology and processes used to make both types are the same.

Halogen bulbs are the third most commonly exported light bulb type in China, accounting for 16 percent of export value in 2004.

New-generation light sources such as LEDs are on the drawing board of some large suppliers, but development is still at the initial stage as makers have yet to adopt advanced technology needed to manufacture these products.

New directive hampers exports to EU
China exports about 70 percent of its energy-saving bulb output — composed mainly of CFLs and standard fluorescent lamps — mainly to Asia, North and South America. Only 20 to 30 percent is sent to the European Union after the region implemented anti-dumping restrictions.

Suppliers will continue to focus mostly on markets outside the EU in the next 12 months, especially after the Waste from Electrical and Electronic Equipment directive takes effect in the region this August. The WEEE directive requires makers to provide deposits for expenses incurred in the collection, treatment, recycling and environment-friendly disposal of waste electric and electronic products.

Samples of supplier profile

Anli Electronic Appliance & Lighting Co. Ltd
Established in 1994, Anli began as a manufacturer of ceiling lights and started producing CFLs in 2000. The company now makes 1 million CFLs and fluorescent lamps every month.

It began exporting in 2003 and currently ships 85 percent of output, mainly to the European Union, Asia and the Middle East. OEM orders comprise the bulk of export business. Export sales grew 30 percent in 2004 and are expected to increase up to 20 percent this year.

The maker will increase its production capacity by 20 to 50 percent in the next 12 months by adding more aging and drying lines and more packaging equipment. This will also enhance production efficiency and speed up operations.

Anli has a strategic partnership with a top maker of semifinished fluorescent tubes based in Henan province. The two companies have set up a lighting source institute with more than 30 engineers.

Products
The company's main products are CFLs, ceiling lights and fluorescent tubes. It also produces electronic ballasts and transformers, which it sells as stand-alone products.

CFLs are available in 2U, 3U, spiral and semi-spiral models with power ranges of 3 to 125W. T4 and T5 fluorescent tubes, on the other hand, are offered with power ranges of 6 to 28W. Products can last from 3,000 to 8,000 hours.

Through collaboration with its semifinished fluorescent tube supplier, Anli has begun using five-color fluorescent tubes since the first quarter of this year. Light from these tubes more closely resembles natural sunlight than conventional tubes. The products meet CE standards. The company will apply for UL certification once volume production begins.

A team of three engineers is in charge of R&D and product development, for which the maker allocates 8 percent of total revenue.

Sample of product gallery

Fluorescent lamps Anli Model: AL T5 Minimum order: 500 units Packaging type: Carton Delivery time: 10 days Indicated price: • Description: T5 fluorescent tube with fixture and electronic ballast; 6 to 35W; 220V; >80 CRI; 8,000 hours service life; 2,700/6,500K color temperature; >0.65 power factor

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