The sector is waiting for its brands…

This is the fourth article I have written for Led&Lighting Magazine.

I have written my first article on the importance of lighting in education, and the next two about the change in the sector. However, I see that I have not mentioned the most important issue within the sector yet.

“Who will be the brands of the sector? What kind of changes will take place within the sector?”

Although LED technology entered our lives a long time ago, it has not been much since we began to use it as a common word in our daily lives. Those who did not know the meaning of the word ‘LED’ before LED TV advertisements were “everyone.” LED was not known by anyone other than experts. The question we were asked the most during the first LED Exhibition we organized was “What is LED?” Those who were informed the most, on the other hand, were asking “will there be LED TV at the exhibition?”

However, today the rate of those who know the meaning of the word ‘LED’ and use LED products has increased considerably. Nowadays, a “LED product” can be included in our purchase list. This product may be a lighting product, a hand lamp, a toy or sometimes an electronic device. Whatever the product is, now LED products are a part of our lives.

However, they are most commonly used in the field of lighting. Necessary lighting and decorative lighting are the fields in which LEDs are used, known and recognized the most.

Although it was not recognized that much at first, there has been a radical change in the lighting sector with the utilization of LED technology, which has then become more realizable and perceivable. Although these changes were seen in products and design at first, they have also resulted in the alteration of key players. The companies we used to see at lighting exhibitions 10 years ago, even 6 years ago, do not take place at such exhibitions anymore; on the other hand, those we had never heard of are now taking place at these events in key positions.

This change has resulted from mainly from the differentiation in the LED technology. Many lighting companies had difficulty in keeping pace with the LED technology. These firms, which have not renewed themselves in terms of technology, are still manufacturing lighting products without LED: However, in parallel with the decrease in the use of products other than LED as the use of LEDs increases in the lighting sector, the number of these companies is decreasing day by day, and the rate of this decrease is increasing with each passing day. Use of LED products and adaptation to the new technology are the most important criteria in terms of sectoral company/brand replacements.

Different developments are experienced by the companies which adapt to the use of LEDs

One of the most important issues of the sector is cost. Cost and budget plans of lighting product manufacturers were made for lighting products other than LED; furthermore, work plans were made according to such budgets. However, the costs have considerably changed with the increase in the rate of LED use in the lighting sector. Many companies have difficulty in challenging these costs. Therefore, cost analysis and adaptation to changing costs will be important criteria in terms of company/brand replacements in the sector.

Another issue is renewal rates in the sector. Since the life cycles of lighting products other than LEDs are shorter, traditional lighting products used to be renewed and changed frequently. Since white-heat bulbs are quite instable and become useless with a slight impact, and because fluorescent and energy saving bulbs have short life cycles, lighting products were used to be changed at short intervals. Therefore, a continuous renewal work went on in the sector. However, LED products have changed this situation completely. LED lighting products are quite durable against impacts as well as heat and moisture changes, and have long life cycles.

This will affect the numbers in the sector rather than its general yearly financial volume. That is, a dramatic change will take place in the number of lighting products used within a year after the first period of change. It is quite difficult to guess the rate of such financial change from today. However, I do not think that there will be a dramatic change financially since LED Lighting products have higher prices than other lighting products.

Moreover, it must be noted that the decrease in the number of the lighting products used, which is directly linked to cost, is one of the most important criteria in terms of company/brand change in the sector.

To sum up;

Today, whichever part of the world we go, there are a few brands that come to mind when the word “lighting” is heard. (Of course there are tens of important companies within the sector. However, here I mean popularity and recognition globally; there are many valuable brands locally. I never intend to deny or neglect the existence of these brands.)

There is only 1 brand which comes to mind when it is said “LED” (I have made this remark considering those who know the LED technology since it is not known by everyone yet; there are billions of people unaware of this technology).

We know that an important part of the lighting sector (nearly all of it in the short term) will consist of LED products.

Now, starting from this point, if we considered the global giant of “LED LIGHTING…”

How many brands would you name?

Feridun Bayram
General Manager
Marmara Fair Org.

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