Jochen Reinschmidt
Head of Digitalization & Legal @ ZVEI Association of the Electrical and Digital Industry
Differentiation for luminaire manufacturers in a saturated market environment
In the saturated lighting market, differentiation counts. We help you to clearly position your product portfolio, enrich it digitally, create unique customer experiences and develop future-oriented pricing models in order to strengthen your market position in the long term.
Lack of differentiation leads to margin erosion.
Strong market fragmentation hinders the development of new target groups.
Interchangeable products intensify competition.
Product copies undermine the brand identity.
Price wars are eroding profit margins.
Lighting planners and architects make the purchasing decisions.
High dependence on wholesalers limits direct customer interaction.
Customer data is the basis for differentiation
Many luminaire manufacturers prefer the traditional distribution channel via wholesalers and do not aim for direct sales. Nevertheless, customer data is essential for creating innovative business models and differentiation in the market. It is crucial to develop methods that make it possible to collect valuable customer information without direct sales. This could be done through the use of configurators and personalized digital tools that not only offer individualized solutions, but also collect valuable data about the preferences and needs of end consumers.
The digital transformation is also leading to a fundamental change in business models in the industry: Hardware and its perfection will no longer be the focus in the future, but rather software, data and data-driven business models. [1]
Strategies for differentiation in the lighting market
Design innovation
Unique, hard-to-copy design features
Unique, hard-to-copy design features
Technology integration
of advanced technologies such as IoT, smart lighting systems or energy-efficient solutions
of advanced technologies such as IoT, smart lighting systems or energy-efficient solutions
Adaptability
of modular or customizable products to specific customer requirements
of modular or customizable products to specific customer requirements
Many manufacturers in the lighting industry strive for differentiation through perfection, but despite advanced efforts, many designs and technological features remain comparable. In order to effectively differentiate themselves from the competition, many companies pursue a best-in-class strategy that encompasses not only product development, but also communication and customer service.
However, despite these comprehensive efforts, only a few market players manage to overcome comparability and achieve higher prices on the market through convincing added value.
Platform approach and ecosystem strategy
The platform approach creates a closed ecosystem that integrates certified electricians and bypasses wholesalers to establish direct sales and installation channels. This model promotes exclusivity through a lock-in system where only certified installers are allowed to install the products. Manufacturers offer special training and academy models to ensure that the installation and maintenance of the products meet the highest standards. This strategy strengthens brand loyalty and enables controlled quality assurance as well as deeper customer loyalty.
Individualization & configurators
In collaboration with medienreaktor, we optimize data collection during use and enable direct contact with customers or lighting designers as early as the planning phase. Our interactive configurators are effective tools for lighting planning and sales that facilitate online configuration by end customers, strengthen customer loyalty and accelerate the purchasing process. These tools significantly reduce the burden on lighting planning and raise the quality of advice in sales to a new level. By using our online configurator, you can collect valuable contact data and leads directly from your end customers, which creates a direct line to your customers in multi-level sales.
Data strategy & data-based business models
We specialize in the development of data-based business models that help luminaire manufacturers to make effective use of valuable customer data. Through targeted data strategies, companies gain deeper insights into customer behavior and market trends, enabling the precise adaptation of products and services to the needs of their target groups. Our support ranges from the conception to the implementation of solutions that collect, analyze and strategically use data.
AI-supported innovations in the lighting industry
The integration of artificial intelligence (AI) into products and services enables luminaire manufacturers to stand out from the market with advanced technology. AI-based systems can analyse user behaviour, improve energy efficiency and create personalized lighting experiences. These innovative solutions not only offer significant added value for end users, but also strengthen the competitive position of manufacturers through differentiated, intelligent product offerings.
Workshop
In-house
Digital
Opening up new markets through digital innovation
This workshop teaches core skills for opening up new markets through innovative digital solutions. Participants develop skills to effectively digitize their business model, optimize processes and thus secure long-term competitive advantages.
Target group
Managing directors, digitalization officers, strategy and innovation managers, IT managers
Managing directors, digitalization officers, strategy and innovation managers, IT managers
Previous experience
Basic knowledge of (digital) processes and technologies in the company
Basic knowledge of (digital) processes and technologies in the company
Zeitinvest
Two intensive workshop days
Two intensive workshop days