The first three quarters of 2020 showed an increase in exports of lighting equipment from Moscow manufacturers. Compared with the same reporting period of 2019, the volume of foreign shipments increased by 6.3%. This was officially reported in the press service of the Moscow mayor's office.
Also, the deputy mayor of Moscow on economic policy Vladimir Efimov specified that the total amount of foreign contracts for the supply of electric lighting equipment exceeded 40 million U.S. dollars.
Export increased, despite the pandemic.
The growth of Russian and, in particular, Moscow exports in 2020 surprised many experts who predicted a significant drop in the industry due to the pandemic COVID-19 and the cascading disruption of international trade relations caused by it. The Mosprom Center for Export Development and Support commented on the situation.
The specialists of the center explained that the pandemic did not have much of an impact on the global demand for electrical lighting equipment, in some places even on the contrary. But one of the largest exporters of electric lighting - China - significantly reduced the supply for a variety of reasons, including domestic. Russia has successfully used the situation and partially filled the deficit in the global market. Moscow remains the leader in the supply of electric lighting abroad.
Mosprom also said that even in conditions of peak restrictions caused by the pandemic, when there was an extremely uncertain situation with the prospects of entire industries, major global economic players did not stop working on large-scale infrastructure projects. For this kind of endeavor, electric lighting is one of the key elements. But China found itself in the midst of a pandemic and, for all its economic power, had to suspend entire industries.
At this point, the demand for any alternative sources of electric lighting equipment increases dramatically. Potential foreign buyers were willing to accept much more favorable pricing terms from Russian manufacturers. "All this has given a powerful incentive to increase production by Moscow companies. For some items, the volume of production of finished products and components has grown at times," said Mosprom specialists.
With all this it should be understood that in the whole world the volume of production, even if slightly, but decreased by 2.1%. Therefore, the growth of Moscow exports in this segment should be regarded as a double success.
New potential foreign markets
The outlook for the global market of electrical lighting equipment and Russia's place in it was described by Alexander Prokhorov, the head of the Moscow Department of Investment and Industrial Policy. According to the official, the market in this segment will inevitably lose volume, mostly due to the forced restrictions in China itself as the current leader in production.
Despite all the difficulties China had to face because of the pandemic and the inevitable losses, experts agree that the country will remain the world leader in supplying electrical lighting around the world. Even though its market presence will no longer be 62% as in 2019, it will still remain significant.
At the same time, Moscow manufacturers have just had a rare opportunity to occupy those market positions in the export of electric lighting that were extremely difficult to enter before.
Natalia Shuvalova, general director of Mosprom center, gave her forecast on potential new markets for products of Moscow lighting manufacturers. In her opinion, the European market, in particular Finland, the Netherlands and Germany, will be open for the Moscow manufacturers.
Companies from Switzerland, Belgium and the United States will be interested in decorative lighting made in Russia. To the USA, as well as to Poland and the UK it is planned to sell large quantities of halogen lamps. According to Shuvalova, Mexico and Brazil are also interested in halogen lamps from Moscow manufacturers.
As an example of successful adaptation to the new market conditions in the center "Mosprom" called GC "Incotex (Moscow). At the moment the holding successfully supplies electric lighting to 30 countries of the world.
Director for development of GC "Inkotex" Alexander Mozgovoy described in detail the interaction with foreign importers of the company's products. Thus, according to his words, the day before "Inkoteks" shipped a large batch of 40 thousand lighting fixtures for the National Bank of Belarus. Large batches of electric lighting equipment production "Inkotex" bought Kazakhstan, where now is carried out extensive modernization of the lighting of avenues and railroads.
Supplies are also going to foreign countries - Europe and South America. For example, the airport in Frankfurt, the cities of Hannover and Buenos Aires, and the medical center in Munich received lighting manufactured by Inkotex.
Electric lighting from Moscow companies is supplied to 78 countries
"In 2020, the structure of Moscow's exports in the segment of electric lighting devices and equipment has changed significantly," Mosprom Center reported.
So, at the moment supplies are made to 78 countries - these are CIS countries, the West and the East, including even, oddly enough, China. Most of the equipment is imported by Belarus - the total sum of the contracts is $12.46 million. Kazakhstan comes second with $10.82 million. Large contracts are also signed with companies in Ireland - $2.46 million and South Korea - $1.69 million.
As for dynamics, the most noticeable increase in purchasing volume was shown by Bulgaria - the supply of Moscow lighting equipment to this country increased by as much as seven times. Export to Korea also increased, though not in times, but significantly - by 82.7%. In general, the increase in export volumes in this segment was observed in many areas of supply.
Experts from the Mosprom Center summed up the report with a conclusion about the generally positive results of 2020, despite the fact that Moscow manufacturers had to repeatedly encounter specific difficulties.