The LED bulb market is currently facing a decline in growth. It has led to prices going down significantly. While it might be great news for consumers, manufacturers are left concerned in India. With a sudden increase in competition, the prices of LED bulbs have gone down by over 20% in 2019.
Brands like Syska, Havells, Bajaj and Philips have been forced to drop prices in the wake of competition. It is affecting the revenue figures of older LED manufacturers across the market. Some brands like Crompton Greaves are facing a decline with the company recording a degrowth of 3.9% in Q2FY20.
Another aspect that is driving down prices is the fact that LED lights have a very long lifespan. Consumers who invest in LED bulbs do not require new lights until several years later. The long-term investment is what makes LED bulbs appealing but also makes it difficult for manufacturers to keep up sales figures.
Market forces are driving erosion in the market and manufacturers are left clueless. It started with the Indian Government’s Unnat Jeevan scheme which enabled consumers to purchase affordable LED lightings. With the average price of LED bulbs going down from Rs.80 to below Rs.65 per piece, it is becoming increasingly difficult for manufacturers.
