30 Aug A Lighting Revolution On The Rise?
According to new industry market research for the lighting industry, LED sources for non-residential use are becoming widely accepted. North American manufactures are still forecasting LED growth of 21.12% through 2019. With costs dropping, the ability to be innovative within the local market will be key. Offering options to meet the customer’s needs, finding niches where the need for LED sources is still not yet the norm, will be key to stay competitive in the market. Smart Lighting technology will drive the next big evolution of the lighting industry over the next couple of years. The construction sector will continue to boost demands for lighting and energy efficient technology. Innovations will be competing luring buyers with low cost LED alternatives. Companies such as BigChinaLED, 1000Bulbs.com and Bulbs.com are creating pressure within the local markets for sales.
Innovative lighting agencies and the manufacturers they represent will need to be strategic in their approach to local markets to meet needs of the buyers. A key element will be the ability to bring knowledge and value to each proposition. While construction seems to be slowing retrofit projects are on the increase. Agencies who focus on targeting niches that will create new opportunities, provide tools and knowledge to help the end user to make the best decisions will be key. Retail, healthcare, outdoor, schools and food segments are poised to take advantage of the newest smart lighting and human- centric technology. Prevailing energy codes that require high efficiency connected lighting require education and knowledge. Clients will want and need to rely on their local agencies to navigate them through the process.
Lighting agencies and manufacturers will need to continually evaluate the ever-changing landscape before them over the next few years. Agencies will need to invest in their local market to find ways to stay competitive. Technology, tools, education, marketing efforts will all need to be considered, or the risk being over shadowed by those who do. Manufacturers will need to develop a greater understanding of local market, work closer with their representatives to brand themselves and their products within their markets; as well as allocate more dollars to reaching the person or persons who specify lighting projects.
All indications are that the lighting industry will need to continue redefine itself based on value pricing and the demand for energy efficiency. Connected lighting and IoT will create a revolution where those entities with the will to change and adapt will survive.
What three things can you do now to prepare?
1. Evaluate the areas of strengths and weaknesses for each segment within your market. Develop a strategy for each to create opportunities or capitalize on existing ones.
2. What changes or investment can you make to offer more tools, knowledge and expertise to your clients and your market?
3. Start a dialogue with your manufacturers to discuss your local market, your strategies and your goals.
Sources:Energy.Gov, IBIS World, Edison Reports, Craig’s TED Magazine, NLB, Channel Marketing
Lana Rice is president of Luminaire Marketing, a marketing and consultant agency for the commercial lighting industry. “We are changing the way the lighting industry does business.” Luminaire Marketing is the developer of The Luminaire Selector, a fresh new marketing and sales tool built specifically for lighting agencies and the manufacturers they represent.