LED lamp sales volume in Indonesia swelled to 1.2m units in 2013

That's around a whopping US$8.8m.

According to GfK, the push for consumers in Indonesia to switch over to using the more durable and energy efficient LED technology lamps is successfully bearing fruit. 

The global leading market research company reported heightening demand for LED lamps over the four successive quarters last year, with overall sales volume reaching more than 1.2 million units in 2013.

GfK in Indonesia commenced its retail tracking of lamps in eight key Indonesian cities in 2013. According to the latest report for the full year of 2013, consumers spent nearly USD 80 million on some 36 million units of fluorescent, halogen, incandescent and LED lamps, with compact fluorescent lamps garnering the greatest volume and value sales at 66 and 75 percent of total market share respectively.

“Compact fluorescent lamps continue to dominate the market but our findings exhibit an apparent trend in the rising take up of LED lamps,” observed Guntur Sanjoyo, Managing Director of GfK in Indonesia. “Although LED technology has already been around in the country for several years, it has only recently become a serious contender in the consumer market when key manufacturers started launching product variants that are priced affordably and specified to regular household requirements.”

In January last year, a single LED lamp was, on average, retailing at a price almost five times that of a compact fluorescent lamp. Key manufacturers started reducing its pricing significantly by half and began promoting this latest lamp technology as a more eco-friendly replacement to compact fluorescent. Although the volume sales contribution was a mere 3 percent, LED lamps garnered substantial sales value of USD 8.8 million; contributing 11 percent to the total lamps market in the country.

“In addition to the lower prices, another successful strategy by manufacturers to help drive consumers adoption was to launch LED lamps which are similarly sized and shaped to the commonly used compact fluorescent lamps,” highlighted Sanjoyo.

The great potential presented in the Indonesian market has attracted many new brands entering the market in bid to tap into the growing demand. In the first quarter of 2013, GfK recorded 27 LED lamp brands with a total of 138 SKUs being sold and by the last quarter of the year, this number widened by around 70 percent. To date, there are more than 46 brands international and local brands with around 237 SKUs.

“As awareness of environmental issues intensifies and the global need to reduce energy consumption becoming more pressing than ever, LED technology has become the solution offered by lamp manufacturers’ to reduce carbon footprint at household, if not personal level,” commented Sanjoyo. “With the current penetration still at a low level, we can anticipate demand for LED lamps in the country to grow at a healthy pace moving forward with the market turning in a decent growth in the next one year,” Sanjoyo concluded.