Impact of Corona (Covid-19) Virus on Indian Lighting Industries.

Updated: Aug 3

Life has become like a horror movie nowadays, it’s like a very bad nightmare, No one expected to face such kind of viral ghost villain in their daily life. The world's Biggest social and economic lock-down means all educational hubs, factories, gyms, hotels, offices, markets, restaurants, shops, and worship places are under lock-down, In the past 3 months, all public and commercial transports were closed and construction work halted. We have been separated from our daily routines and locked in our own apartments.

More than 45% of people across the India have reported an income drop as compared to the year 2019
Impact of covid19 on lighting industry

The experts say, coronavirus crisis will be the biggest financial crisis of all time, It will penetrate much deeper than the 2007-2009 global financial crisis. which results in high unemployment, business closures, food crises, and give rise to more criminal activities.

The United Nations Conference held on Trade and Development (UNCTAD), the UN's trade and development agency said, the world economy will go into recession this year. the slowdown in the global economy caused by the coronavirus outbreak is likely to cost at least $1 trillion in 2020 alone. As per the report of UNCTAD, it is expected about $2 trillion to $3 trillion financial falls will be faced by developing countries in the coming next two years, in terms of reduced growth measured in GDP.

Most of the big companies are treading safely looking for the most cost-effective ways to deliver their products and services to the customers. It may be obvious to cut marketing spends, labor costs, and many other expenses but that’s only a short-term strategy that will create long-term consequences.

Every business is co-related with every other business-like, to understand the impact of covid-19 on the lighting industry we need to understand the impact of this viral infection on the construction business, interior and architects, raw material suppliers(china), and transportation business as well.

Today China is the biggest supplier of Lighting and components suppliers throughout the world, so let’s understand the situation of Chinese companies first.

Impact of coronavirus on Chinese manufacturers and suppliers

Production Prospective

As per the industry survey conducted by LED-inside, the surveyed LED companies are expecting about 30 to 50% of production drop compared to the last year.

LED chip production will be less impacted by the lockdown or delay production because most of the suppliers are holding a good amount of stock. Most of the manufacturers still have LED chips in stock from last year's supplies.

Whereas other lighting fixture manufacture will hit on a large scale due to lock-down and unavailability of migrant laborers. Lighting-based factories are mostly located in Guangdong and Jiangxi, this area does not have local manpower, labor from all over china shifted to work there. Most of the decorative and architectural lighting fixtures-based companies do not hold inventories. So, if migrated labor does not resume their work then the condition of permanent factory shut-down may occur.

In another survey done by LED's Magazine, A group of people was asked some questions based on those it is found that 40% of people analyzed that the production rate will be decreased in the coming future, 10% says their production will be increased compared to the last year, whereas 30% says there will be no effect on their business and rest are uncertain.

Sales prospective

The biggest source of generating international sales by Chinese companies are exhibitions and trade fares. During the event of viral infections over two dozen trade fairs and industry conferences in China and overseas have been either canceled or postponed due to a ban on international travel and fear among their customers.

The events affected due to corona viral spread are LED China 2020 Shenzhen and the concurrent Entertainment Design Expo 2020, The biannual big event in the lighting industry, Commercial Integration China 2020 Shenzhen, Light + Building, Digital Signage China 2020 Shenzhen, MWC, Sign China 2020 Shenzhen and Retail China 2020.

Impact of coronavirus on Chinese Logistics companies

If China will able to survive the impact of coronavirus then the biggest challenge china will face managing the delivery of its products to its customers. As viral infection started in china and then transmitted globally so, the world is blaming China for the spread of this infection to other countries. Even Though china is spreading the news about “Zero Infection in China” but still there are many theories that prove how good is china to hide its original facts.

Most of the countries have already banned Chinese shipments and flights, due to which thousands of tons of material are buried into containers as Hundreds of ships are waiting for permission at the dockyard to unload their material.

Only three-fifths of China’s trucks are in a working state due to lack of labor, roadblocks, quarantines, and factory closings. Transportation warehouses are overflowed with finished goods and raw materials that cannot be moved due to a lack of trucks. This results in many manufacturing units are not in a working state as components are not reaching them.

Those companies which are having the proper amount of raw material are also not producing at full capacity because of a lack of tucking facilities for the movement of finished goods. As shipping consignments are not moving due to covid-19 so shipping companies are canceling orders for those who can move their products through trucks sources said.