EXECUTIVE SUMMARY

1
 1. EXECUTIVE SUMMARY

The research project gives an entire study of the Decorative Lighting

industry leaders with key statistics like sales, revenue, price, product picture
and specifications, contact information, cost, capacity, production and
company profile. The project report offers critical information at the state of
the enterprise. Marketing channels and development trends of the
Decorative Lighting industry is also well-found inside the report, making it
a valuable source of information and path for agencies and individuals.

According to the project report, one driver in the market is growing

demand for energy-efficient decorative lighting products. Globally,
customers seek lighting products that utilize less energy, are long-lasting,
and incur low electricity bills. Therefore, growing awareness of energy-
efficient lighting products through government initiatives and distinct
activities encourage the importance of energy conservation. Further, the
report states that one challenge in the market is perceived value gap of
customers.

The global decorative lighting market is highly fragmented, with the

presence of many international and regional brands offering lights for
residential use. Customers demand superior-quality, innovative, and unique-
designed lights because they offer a high aesthetic appeal. The study was
conducted using an objective combination of primary and secondary
information including inputs from key participants in the industry. The
report contains a comprehensive market and vendor landscape in addition to
a SWOT analysis of the key vendors.

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INTRODUCTION

3
 2. INTRODUCTION

Market entry strategy can be defined as an organised way of

delivering and distributing goods or services to any specified market. This
market can be local as well as foreign. The statement that there is no single
method for entering any particular market is fairly true. Firms can use
different strategies to exploit markets under different circumstances. The
market entry strategies of a firm can be influenced by the characteristics of
the market (such as sales potential, strategic importance of the market,
country barriers and culture), organisation’s characteristics and capabilities
and its near market knowledge and involvement and also commitment of the
management.

The main strategies that an organisation can use to gain entry into a
foreign market depends on factors such as organisation using a strategy of
technical innovation where it introduces a product which it regards as
superior to those already in the market. Secondly, it can use the strategy of
market adaption to modify the product slightly for a region or specific
customers. Thirdly, the pricing factor influences the market entry strategy
where pricing is kept low to challenge the competition which bits into
profits.

The attitudes and the ability to achieve goals in the target markets,
level of risk involved are important factors when deciding on whether to
export, franchise, license, joint venture or get into direct investment.
Marketing Strategies Exporting In this strategy, a company can export goods
to overseas markets from its home base without directly marketing and
producing those goods in that market. It can be direct or indirect. In direct
exporting, the company can sell its products or services directly to the

4
customers without the help of the middle man. In in-direct exporting, a
company can sell its products or services to an agent or distributor in the
foreign market, which then repackage, advertise and sell it to the customers.
Main advantage of exporting includes the exporter’s total control over
pricing and distribution (not in case of agents and distributors), reduced
potential risk of producing overseas due to home base manufacturing and
greater potential for profits due to the removal of middle man. Although,
foreign agents can be a barrier to the entry strategy and exporting firm may
have lesser control. Licensing can be described as a market entry strategy
where an organisation (Licensor) based in one country grants the permission
to another company(licensee) to use the brand, trademark, technical
knowledge, manufacturing processes, knowhow and other skills to conduct
business in that country.

Licensing is a contractual agreement and is quite similar to

“franchise”. It engages little involvement and expenses from the licensor
and only needs to sign the contract and oversee the implementation of that
contract. Some of the advantages involve lower financial risk, lower cost
method of assessing the market potential, avoidance of tariffs, non-tariff
barriers, government restrictions etc. It is a safer way of going international
and starting low risk manufacturing relationships. It also means getting most
out of marketing process due to greater interest of both the parties. But the
participation in this type of strategy is limited to the length of agreement,
particular products, trademarks and processes.

Licensee can develop skills over the time so the license period is
short and licensee can become competitor. Possible manufacturing and
marketing returns may be lesser. It also needs thorough fact finding,
investigation, planning and interpretation skills. Joint Venture Joint venture
is normally a partnership between two or more firms at a corporate level

5
who join together to achieve particular business goals and a combination
create a separate entity where ownership and control of the property rights
and operations is shared by the parent companies.

Franchising is a type of a contractual agreement in which the parent

company the franchisor delivers products package, systems and operation
management and process whereas the franchisee contributes capital, market
knowledge and personnel. It is a type of licensing. In this contract the
franchisor agrees to sell the right to a particular technology, brand name,
structure and processes in return of capital. The arrangements of the
structure are as such that the franchisee buys into the actual commercial
concept of franchisor from products to culture. This entry strategy is quite
visible in hotel chains and fast food chain such as Marriot, McDonalds and
KFC etc. Franchisee gets the permission to use the logo, trademarks,
services and advertising and marketing support. The franchisee’s abilities of
carrying out the promotion, production and service according to the
standards of franchisor must be taken into account in the agreement.

Strategic Alliance, Overseas Subsidiary, Overseas Agents and

distributors are some of the other market entry strategies firms can employ
to get access to the target market. Types of Firms and Their Strategies are:

 Large
 SMEs
 Manufacturing
 Service Based Market Conditions

It is very important to consider the target market conditions when

deciding about the entry strategy into that market. The market analysis
should consider the marketing mix (N. Borden; 1964) that includes 4Ps of
Product, Price, Place and Promotion. M. Porter’s generic strategic analysis

6
can also be used to understand the market structure before entering.
Particularly in case of a foreign market, the organisation should carry out
thorough PEST analysis of the country and the market. This analysis would
help to understand how easy it might be to go international and if the
business is going to take advantage of the inner foreign investment? It will
also help to understand the competitive market of the market and how other
international firms from different countries would respond to your entry.
Decorative lighting refers to residential and consumer lighting fixtures,
lamps (inclusive of any light (tubes or bulbs) that is integrated with the
fixture or the lamp), and string lights, which are considered in this report.

2.1 About Decorative Lighting Study:

What is decorative lighting?

A light fixture that is decorative in nature or design. The term

‘decorative lighting ‘covers all the traditional kinds of light fittings (floor
lights, pendants, chandeliers, etc) and differentiates them from technical or
architectural lighting. Decorative lighting can provide general illumination
for an entire room, focus on a small area for task or hobby lighting, or be
used to accent other lighting and provide additional ambiance. Most
decorative lighting can be either hardwired or plugged into an outlet and
some can run on battery or solar power. We need to choose creative shapes,
unusual colours, interesting designs and attractive elements to complement
our decor with lighting.

Types of lighting:

Three are three basic types of lighting that work together in a home:

 Ambient
 Task
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  Accent

A good lighting plan combines all three types to light an area according to
function and style.

Ambient lighting: -

Provides an area with overall illumination. Also known as general lighting,

it radiates a comfortable level of brightness without glare and allows you to
see and walk about safely. In some spaces such as laundry rooms, the
ambient lighting also serves as the primary source of task lighting. It can be
accomplished with chandeliers, ceiling or wall-mounted fixtures, recessed or
track lights and with lanterns mounted on the outside of the home. Having a
central source of ambient light in all rooms is fundamental to a good lighting
plan.

Figure1: - Ambient Lighting Atmosphere for Home Office or Cinema

Task lighting: -

Helps you perform specific tasks, such as reading, grooming,

preparing and cooking food, doing homework, working on hobbies, playing
games and balancing your check book. It can be provided by recessed and
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track lighting, pendant lighting and under cabinet lighting, as well as by
portable floor and desk lamps. Task lighting should be free of distracting
glare and shadows and should be bright enough to prevent eye strain.

Figure2: - Task Lighting for specific task

Accent lighting: -

Adds drama to a room by creating visual interest. As part of an

interior design scheme, it is used to draw the eye to houseplants, paintings,
sculptures and other prized possessions. It can also be used to highlight the
texture of a brick or stone wall, window treatments or outdoor landscaping.

9
 Figure3: - Accent Light

To be effective, accent lighting requires as least three times as much

light on the focal point as the general lighting surrounding it. Accent
lighting is usually provided by recessed and track lighting or wall-mounted
picture lights.

Figure4: - Hanging Light

Types of Lighting Fixtures:

There are many different styles, sizes and shapes of lighting fixtures that
are available to deliver the ambient, task and accent lighting we need. A
study on the existing ones has been made to understand the market

10
environment, sellers and buyers both. The many shapes and forms of
lighting fixtures are as follows:

 Chandeliers
 Hall/foyer fixtures
 Pendants
 Ceiling-Mounted Fixtures
 Wall-Mounted Fixtures
 Bath/Vanity Fixtures
 Portable Lighting
 Track Lighting
 Rail Lighting
 Recessed Lighting

 Decorative lighting can provide general illumination for an entire room,

focus on a small area for task or hobby lighting, or be used to accent
other lighting and provide additional ambiance. Most decorative lighting
can be either hardwired or plugged into an outlet and some can run on
battery or solar power.
 Smart lighting systems are increasing in residential places as they offer
control over lighting products. Smart lighting systems also integrate the
concept of the Internet of Things (IoT), as it helps the customers control
the lighting products through the apps installed on their mobile devices.
 One driver in the market is growing demand for energy-efficient
decorative lighting products. Globally, customers seek lighting products
that utilize less energy, are long-lasting, and incur low electricity bills.
Therefore, growing awareness of energy-efficient lighting products

11
 through government initiatives and distinct activities encourage the
importance of energy conservation.
 In 2019, the market size of Decorative Lighting is xx million US$ and it
will reach xx million US$ in 2025, growing at a CAGR of xx% from
2019; while in China, the market size is valued at xx million US$ and
will increase to xx million US$ in 2025, with a CAGR of xx% during
forecast period.
 In this report, 2018 has been considered as the base year and 2019 to
2025 as the forecast period to estimate the market size for Decorative
Lighting.

2.2 Top manufactures of Decorative Lighting Market are:

 Acuity Brands
 Generation Brands
 General Electric Company
 Maxim Lighting
 Signify Holding

Segmentation Analysis: - Report Provides segmentation on the basis of

product type, application and geographical regions with sales, revenue,
market share and growth Decorative Lighting in these regions, from 2014 to
2025, covering Decorative Lighting Market by Types:

 Ceiling lighting
 Wall lighting

Decorative Lighting Market by Application:

 Residential And Commercial

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COMPANY PROFILE

13
 3. COMPANY PROFILE

Welcome to Index Market Research. We are a global full service

quantitative and qualitative market research Fieldwork Company committed
to provide high quality data collection and market research services. The
world is becoming more complex, uncertain, and fast-moving than ever
before, which is why industry and Research exists. Our mission is to help
our clients decode the future to be more successful and innovative.

Index Market Research is a strategic consulting and market

intelligence firm tracking more than 10+ industry verticals and assisting our
clients on their journey towards transformation growth strategies. Some of
our capabilities include, Market Sizing and Forecasting, Competition
Mapping, Market Entry Strategy, Value Chain Analysis, Vendor Analysis,
Distribution Chain Analysis.

We create trusted intelligence on the world’s largest industries by

leveraging our unique data, expert analysis, and innovative solutions.

We create syndicate and customized reports. Besides these, we offer

consulting services to address a client’s research needs. We customize
product offerings to meet domain-septic research needs.

Our key Focus is to track developments and provide market research

data, customized services, analysis and recommendations for diverse
industry verticals.

Our market studies encompass a multitude of factors such as market,

economic and technological developments. They contain a detailed study on

14
various market segments. Information thus included is obtained via
extensive desk research and interviews with relevant stakeholders.

We ensure that the fieldwork for your research provides accurate and
actionable insights for your business needs with the help of our team of
highly experienced project directors who have worked in different levels in
FMCG, Automobile, Healthcare, Pharmaceuticals, Medical Devices,
Telecom, Finance and Travel & tourism industry. Having in-depth
experience of applying suitable methodologies across a wide range of
different industries, geographies and cultures, we are consistently making an
impact on the growth of our clients’ businesses.

Our research audiences are from different geography, culture and

sectors which includes but are not limited to C- level executive including
VPs, department heads and directors, finance professionals, IT/IS decision
makers, consumers, physicians, nurses, pharmacists, patients and caregivers,
Payors and healthcare decision makers.

Our flexible and workable approach assists an ever-changing industry

and keeps our clients on top of rapid technological advances and helps them
to be proactive, adapt to new challenges in any form and expand business in
the new market. Index Market Research’s team have in-depth knowledge
and experience of the b2b market research and have been instrumental in
achieving the best results possible for our clients, who range from various
fortune 500 companies, and SMEs.

To bring in more transparency we would like to update on our

clientele who regularly purchases report from us like

 Google
 Intel, Olympus

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 McKinsey & Co, Philips
 Samsung, Panasonic, Sony, etc...

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OBJECTIVES

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 4. OBJECTIVES

1. The main objective of this project report is to know about and

analyze the market of lighting industry

2. To learn Extracting, analyzing and storing relevant data from

various secondary database sources and web search engine

3. To find out the prime purpose and need for decorative lighting

4. To share detailed information about the key factors influencing

the growth of the market (Flexibility, Speed and control, target

audience, industry-specific challenges and risks).

5. To Conduct primary and secondary research to build the

analytical sections and to identify market trends.

6. To Prepare SWOT analysis, recent developments, business

models, product launches, etc.

7. To strategically profile the key players and comprehensively

analyze their growth strategies.

8. To study market share geographically

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SCOPE OF RESEARCH

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 5. SCOPE OF RESEARCH

This project report covers not only the domestic but also the global
market of lighting industry. It also includes the aspects of value chain
process. While making the market audit & preparing the project report I
have experienced & gained knowledge about the lighting products & its
market, its problem for different participants in the value chain process, its
prospect, various marketing concepts & strategies used by importer,
wholesalers, & retailers. Besides this, lighting products, brands, promotional
tools, pricing, their usage etc. are also learnt.

Current Trend in lighting and light sources:

Illuminating the places where we stay all day and night is not just a
necessity, it’s the way we conduct ourselves in life. The style, the aesthetics,
the functionality and other such aspects of lighting all tell about our
imagination, creativity and practicality. Rising power bills and awareness
about environment, lighting trends have favourably shifted towards compact
fluorescent lamps (CFL), LED based lights & T5 which is the highly energy
efficient version of fluorescent tube. Green lighting, as they are called, are
durable and use less power. In fact, the new green lighting system has
acquired a new meaning where it enables maximum utilization of building
design, materials, colours, light sources and electronics etc. in order to make
lighting effective and energy conservative. Dynamic Lighting as people are
getting more natural, they are preferring advanced lighting solutions that can
bring in the dynamics of daylight indoors promoting the feeling of
wellbeing. In dynamic lighting system, different lamps are used whose
colour, temperature and intensity can be controlled to create the desired

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 atmosphere Recessed lights will continue to be in demand with more options
to explore.

Apart from the rows of halogen and LED recessed lights with their
twinkling glow, concealed lighting is one more current trend that will not
only illuminate living rooms but bedrooms too. With retro looks gaining
popularity, track lighting systems fitted with CFL and LED lights would
also be in vogue. Sculptural pendant lights, chandeliers, floor lamps on
tripod stands and arm table lamps, both in classic as well as modern designs
LED lighting: The innumerable LED lighting solutions can create a number
of effects, moods and ambiances. And not only this, LED lights are highly
energy efficient which is yet another lighting trend seen recently. The
projects lighting focuses mainly on the usage of LEDs for attaining the
desired effect and ambience.

Light Emitting Diodes (LEDs):

LEDs produce light when voltage

is applied to negatively charged
semiconductors, causing electrons
to combine and create a unit of
light (photon). In simpler terms, an
LED is a chemical chip embedded
in a plastic capsule. Because they
are small, several LEDs are
sometimes combined to produce a
single light bulb. LED lighting in
general is more efficient and
longer lasting than any other type
of light source, and it is being
21
developed for more and more
applications within the home.
 Figure5: - Light Emitting Diode

developed for more and more applications within the home. LEDs are
currently popular in under -cabinet strips and some types of down -lights.

Lighting Controls:

Lighting controls give you the flexibility to design a lighting plan

with multiple uses and decorative effects. With the touch of a button,
today’s sophisticated dimming systems enable you to: -Lower light levels to
conserve energy and increase bulb life -Vary the mood of a room -Alter the
intensity of the light to suit the activity -Create and save a number of
different lighting schemes in one room.

Types of Controls

1. Toggle dimmers

Dimmers are devices connected to a light fixture and used to lower

the brightness of light. By changing the voltage waveform applied to the
lamp, it is possible to lower the intensity of the light output. Dimmers range
in size from small units the size of domestic light switches to high-power
units used in large theatrical or architectural lighting installations. Modern
dimmers are built from semiconductors instead of variable resistors, because
they have higher efficiency. A variable resistor would dissipate power as
heat and acts as a voltage divider. Since semiconductor or solid-state
dimmers switch quickly between a low resistance "on" state and a high
resistance "off" state, they dissipate very little power compared with the
controlled load. Toggle dimmers allow you to vary the intensity of the
lighting by a small slider that is next to the toggle switch. The toggle allows
you to turn the lights on and off, while the slider allows you to alter the

22
intensity of the light. These are present-type dimmers, which means you can
set them at a favourite setting that will remain at the present intensity each
time you turn the switch on.

Figure6: Types of Dimmers

2. Slide dimmers:

Provide full-range, manual dimming

control. Some are equipped with a
touch-button that allows you to return
to the previous lighting level when the
lights are turned on. Others have an
indicator light that glows in the dark
for easy location.

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 3. Integrated dimming systems:

Allow you to create multiple present lighting scenes within a room.

Scenes can be recalled with the touch of a button from a single wall box or
with hand-held wireless remote controls. Some manufacturers have even
started offering systems that can be programmed via mobile devices such as
the Apple iPhone.

4. Touch dimmers:

Allow you to vary the

intensity of the lighting while
depressing a button. These
systems permit one-touch recall
of the previous lighting level.
Some are equipped with
indicator lights that provide a
continual readout of the lighting
intensity and delay features that
allow the operator time to exit a
room before the lights turn off.

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 RESEARCH

METHODOLOGY

25
 6. RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research

problem it is a plan of action for a research project and explains in detail
how data are collected and analyse. Research Methodology may be
understood as a science of studying how research is done scientifically. It
can be done over a wide range of studies from simples’ description and
investigation to the construction of a sophisticated research. A clear
objective provides the basis of design of the project. Since the main
objective of this report is to know about and analyse the market of lighting
industry

Identifying Market Feasibility & Forecasting, Identifying Market and

Opportunity Analysis. I have decided to use descriptive research design
from web-based search engines mostly from secondary method.

6.1 Research Design

A research design is a plan that specifies the objectives of the study,

method to be adopted in the collection of the data, tools in analysis of data
helpful to frame hypothesis. “A research design is the arrangement of
condition for collection and analysis of data in a manner that aims to
combine relevance to research purpose with economy in procedure.
“Research design is needed because it facilitates the smooth sailing of the
various project operations, thereby making the project as efficient as
possible yielding maximal information with minimal expenditure of effort
time and money also it minimizes bias and maximizes the reliability of the
data collected.

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6.2 Types of research:

1) Pure research
It adds to the existing body of knowledge; doesn't necessarily provide
results of immediate, practical use.
2) Applied research
In an applied research one solves certain problems employing well
known and accepted theories and principles.

3) Exploratory research-
An exploratory research is conducted about a research problem when
there are few or no earlier studies to refer to or rely upon to predict an
outcome.

4) Descriptive research-
Describes, interprets, and clarifies what in the present

-often done with surveys

-may be done by observation or an observational instrument.

5) Evaluation research-
Evaluation research can be defined as a type of study that uses
standard social research methods for evaluative purposes, as a specific
research methodology, and as an assessment process that employs
special techniques unique to the evaluation of social programs.
6) Experimental research-
An experiment is a research situation where at least one independent
variable, called the experimental variable, is deliberately manipulated
or varied by the researcher.

27
 7) Social research-
Social research is research conducted by social scientists and which
follows by the systematic plan. Social research methods can generally
vary along a quantitative/qualitative dimension.
8) Historical research-
A systematic process of searching for information and fact to describe
analyse or interpret the past.
9) Qualitative research& Qualitative research-
The basic and applied researches can be quantitative or qualitative or
even both. Quantitative research is based on the measurement of
quantity or amount.

10) Business research-

Business research involves establishing objectives and gathering
relevant information to obtain the answer to a business issue.

Actual type use in project:

In order to prepare research, report I have to use descriptive

research type. This research type helps in describing the concept,
analyse it and draw interpretations. It can be done through survey or
observation. For my project report, the analysis is done through
observation i.e. by the information given by the company required to
study decorative lighting market.

6.3 Data collection

Data collection is the process of gathering and measuring information on

variables of interest, in an established systematic fashion that enables one to
answer stated research questions, test hypothesis, and evaluate outcomes.

28
 Data is an important unit in the process of decision-making process.
Data can be collected by the following methods.

METHOD OF DATA COLLECTION

PRIMARY SOURCES SECONDARY SOURCES

OBSERVATION REFERENCE OF BOOK

METHOD

DIRECT ANNUAL ACCOUNT,

COMMUNICATION WEBSITE,
NEWSPAPER

QUESTIONNAIRE
INTERNET

Primary Data Collection

It is the first-hand information collected by the researcher through

experiment or survey. In case of survey the researcher can use one of the
following ways

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 1. Interview
2. Observation
3. Action research
4. Case studies
5. life histories
6. questionnaires
7. Questionnaire Method
8. longitudinal studies

Secondary Data Collection

It is collecting data is by way of collecting secondary information.

The secondary data is the data already available in one or other from there
could be internal as well as external sources of secondary data.

1. Previous research
2. Official statistics
3. Mass media products
4. Diaries
5. Letters
6. Government reports
7. Web information
8. Historical data and information
9. News paper
10. Magazine
11. Books

Actual data use in project:

While conducting my project, the researcher has used secondary data.

Other information is from different books, websites and index market

30
research data base. Thus, I have collected my requisite data and information
& analysed systematically to turn them into useful information. However,
the internship report will be discussed in some basic parts. Each of them will
be illustrated in different points and sub points as followed.

6.4 Product Evolution

We all know that in the lighting industry, LED was initially used as a
retrofit light source and for making retrofit lamps. Then there came
integrated luminaries and LED-based innovative light sources and lamps.
Leveraging its programmability, LEDs helped facilitate the analog-to-digital
transformation in the lighting industry. In addition, thanks to its small size,
LEDs allow for a wide range of luminary’s design. Since the 1970s, the past
4 decades have been a slow and long process where energy-saving lamps
initiated the digitalization in the lighting industry. Over the next 10 years,
we might witness another wave of change toward connected lighting that
has been led by LEDs.

6.5 Channel Evolution

Over the past years, due to discount LED light bulb sales in major
retailers like IKEA, The Home Depot, and Lowe’s, LED products have
grown so rapid in popularity in retail channels. Plus, e-commerce giants like
Amazon and Alabama have further boosted retail sales of LED lights. For
government projects, India’s state-run joint venture Energy Efficiency
Services Limited (EESL) has procured over 400 million LED light bulbs
through competitive bidding over the past years, and the number is still
increasing at a rate of 200 million units per year. This is a new business
model that is worth paying attention to.

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 6.6 Brand Evolution
Philips Lighting, OSRAM and GE, for over a century, have
dominated the global lighting market with their innovative products and
technologies, global production bases, extensive sales networks, and strong
brand equity. They have also contributed a lot to LED light development at
different stages. The LED lighting market, during 2011 to 2015, prospered
vigorously, and sustained a steady growth in the second half of 2015. One
would expect these three lighting giants to take the opportunity to strengthen
their business
Operations and continue to expand market shares during these pivotal
periods.
Index market research analysts categorize the global decorative lighting
market into the following segments by product. They are:

 Ceiling lighting

 Wall lighting

 Indoor lamps

 Outdoor lighting

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 Figure7: Market ratio by product

The top three product segments for the global decorative lighting market are
discussed below:

Ceiling lighting

Ceiling lights are those lighting products that are hung from the
ceiling. In 2016, this segment accounted for the highest revenue share of
38.59% in the global decorative lighting market.

According to a lead retail goods and services research analyst from Index
Market Research, “Kitchen island lightings are majorly used for task
lighting. These are ceiling lights, which are specifically used as decorative
lighting. Kitchen island lightings are used in modern kitchens where task
lighting is required. These island lightings are suspended from the ceiling.
They are available in contemporary, transitional, and modern designs and
patterns.”

Wall lighting
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 Wall lights are also known as sconces. Sconces are decorative lighting
products, which are affixed to a wall and direct the light in upward and
downward directions. These decorative lighting products are used for indoor
and outdoor walls of homes, buildings, hotels, restaurants, cafés, bars, and
other places. Wall lights can be of various styles like classic, transitional,
vintage, industrial, rustic, contemporary, and modern.

“Sconces integrated with LED technology are available. These

sconces can also be used in bathrooms. Candle, swing arm, armed sconces,
flush mount, and Walcheren are types of sconces available in the market.
Wall lights are majorly used in residential places and fixed according to the
rooms where they will be used,”

Indoor lamps

Indoor lamps are mostly used for task lighting. However, these lamps
are also used as decorative lighting products to enhance the aesthetic value
of indoor and outdoor spaces. There are numerous styles of lamps, which
are classy and attractive. Lamps can be of different types depending on the
different tasks like table lamps, floor lamps, and desk lamps.

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DATA ANALYSIS
&
INTERPRITATION

35
 7. DATA ANALYSIS & INTERPRITATION

7.1 SWOT Analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is

a framework used to evaluate a company's competitive position and to
develop strategic planning. SWOT analysis assesses internal and external
factors, as well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-

driven look at the strengths and weaknesses of an organization, its
initiatives, or an industry. The organization needs to keep the analysis
accurate by avoiding pre-conceived beliefs or gray areas and instead
focusing on real-life contexts. Companies should use it as a guide and not
necessarily as a prescription.

Strengths

 Govt. incentives in budget for CFLs and LEDs business.

 Quality products with well technical specification. • Products
durability and longevity.

Weakness

 New in lighting market.

 Lack of brand awareness.

Opportunities

 Govt. incentives for energy saving products.

 LED market is on-going and has a great future.

Threats

36
  Increased number of competitors in the market.
 On-going CFL bulb demand in market.

7.2 Market Analysis

 Consumers are more interested in CFL than LED bulb due to low
price.
 Consumers are not aware enough about the energy saving feature and
low cost of electricity of LED Bulb.
 Chinese products are holding the main market share of local market.
 Some brand Companies are manufacturing LED bulb for local
market.
 Most of brand companies import the parts (Aluminium PCB and led,
LED driver etc.) from outside of the country and assemble bulbs in
their own premises.
 Most of the parts came from China, Korea and Japan.
 Some brand companies import bulb directly from other foreign
country along with their own branding.
 Brand companies acquiring Certifications like- BSTI, BUET, CE,
IEC, ISO, SUPER STAR R&D, Wide Voltage Range, Environment
Friendly etc.
 Super Star Lighting is leading the market right now.
 Brand companies customized their packaging for the local market and
customer segment.
 LED bulb is more acceptable in showrooms, offices, commercials &
restaurants.
 Retails stores controls the selling of brand on their will.
 Wholesalers always looking for the maximum commission and profit.
 Different companies, importers and distributors have different
commission policy.

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  Wholesalers stock products from different sources instead of one
unique source.
 Sometimes wholesale and retail price are different from each other
and wholesale price vary in purchasing quantity.

7.3 LED Market Analysis:

The big picture conveyed in the previous two chapters is based on

detailed calculations for every segment, technology, and geography. As
general lighting is the largest market, this chapter covers the individual
applications in that field and presents the technology trends by geography
for each of the regions surveyed. The uptake of LED mapped out over the
next decade has radical implications for the sector’s industry structure.
Companies need to ensure that their strategies factor in these changes as
constellations gradually shift towards more new fixture installation business.
Applications: Architectural Is the Early LED Adopter, With Residential
Moving Slowly but Significantly General lighting consists of 7 applications.
The first 6 – residential, office, shop, hospitality, industrial, and outdoor
lighting – are defined by type of location and building. The 7th,
architectural, is – in contrast – a functional application, the purpose of which
is mainly decorative or to create mood. Residential is and will remain the
largest market segment, followed by office and outdoor

Global Perspective of LED Market:

Calculated based on number of light sources (lamps), incl. both new

fixture installations and replacements; incl. LED modules/light engines.
Total lamp and LED light engine market (incl. LED module) has a 12%
market share (10% by value), but usage is concentrated in Europe and the
US, where awareness of colour quality is very high. HID, which is the most
recent technology apart from LED, has a 2 percent market share (14% by

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value). Although incandescent is today’s key light source on a unit basis, it
has the lowest energy efficiency. LED has a much better efficiency of 60 to
120 lumen per watt (at lighting fixture/lamp level) than incandescent at 10
to 19 lumen per watt, and continues to improve rapidly.

However, it is not just LED that has better efficiency. Other non-LED
technologies that have greater efficiency than incandescent are CFL at 40 to
70 lumen per watt, LFL at 35 to 87 lumen per watt (T8, for example), and
HID at 50 to 115 lumen per watt (e.g., metal halide). Moreover, all
traditional lighting technologies are improving their energy saving features
as energy saving consciousness increases globally – and to compete with
LED – by increasing their efficiency. For instance, while normal halogen’s
efficiency compared (lamp level) to incandescent 60W is 11 to 12 lumen per
watt, eco-friendly new halogen’s efficiency is approximately 15 lumen per
watt.8 The future technology split will shift towards a more energy-efficient
mix, with non-LED green technologies playing a major role before
transitioning to LED, especially through to 2016 (until LED gradually
becomes more cost competitive).

While the incandescent market – calculated on a unit base – will

decrease from 52 to 9% from 2010 to 2016, the shares of other energy-
efficient technologies will increase. CFL, for example, will rise from 17 to
25 percent over the same time scale, and halogen from 12 to 22%. These
traditional eco light sources will also gain a greater share vis-à-vis the same
technology (normal halogen versus eco-friendly halogen, for example) as
their availability increases, even though their prices are higher than those of
standard products. Asia leading the global LED general lighting market:
Asia is leading the global LED general lighting market with 40 – 50% of the
total market going forward.

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At a more granular level, trends differ by country/region, as described
below:

North America:

At present, North America’s LED market share is estimated at around

7%, with a market size of EUR 1 billion. This market is currently led by the
new fixture installation market, especially in the non-residential segment,
supported by several government initiatives such as the LEED (Leadership
in Energy and Environmental Design) program in the US. Although the
incandescent ban will come into effect starting in 2012, LED market share
may grow more slowly in the light source replacement market. CFL and
electricity prices are relatively low in most US states, which means the
benefits of LED light bulbs are limited. However, LED market share is
likely to increase as the price of LED lighting goes down, even in the
residential and light source replacement segments. These factors will
accelerate LED market share in North America, which is expected to rise to
over 45% in 2019 and around 70% in 2025 on a value basis, including both
new fixture installation and light source replacement.

Europe:

LED market share in Europe is currently estimated at around 7%,

with a market size of around EUR 1 billion, similar to that of North
America. The current major application of LED lighting in Europe is
architectural lighting as European buildings tend to be decorated by
colourful exterior lighting, where RGB type LEDs have considerable
advantages. The incandescent ban will be a key trigger for increasing LED
market share, particularly white light. Europe has the fastest incandescent
ban roadmap.

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 Almost all incandescent lighting will be banned by 2016. However,
Europeans are very light-quality-conscious, which could be a potential
barrier. Halogen lighting is likely to benefit from the incandescent ban until
LED overcomes its colour quality issues. However, Europe’s high electricity
prices and tendency towards high energy awareness will push up LED‟s
share of the market, especially in Western Europe, while Eastern Europe
lags behind. Europe’s LED market share is expected to be over 35% by
2019 and over 50% by 2025.

Asia:

Currently, the Asian general lighting market is already the largest

market in terms of both total general lighting and LED lighting.
Furthermore, heavy demand for new construction and the increasing
affordability of LED will strengthen Asia’s position in the global lighting
market. In terms of current LED market share, Asia’s figures are similar to
those of Europe and North America due to the Chinese government’s strong
support for LED street lighting and Japan’s strong retrofit market. However,
Asia’s LED market share is expected to be lower than that of Europe and
North America, at around 25% in 2019, rising to almost (but not above)
60% in 2025. China plays a significant role in this region due to its large
economic size and strong growth. LED‟s main market share in China is in
outdoor and architectural lighting. The government intensely supports the
installation of outdoor LED lighting, aspiring to achieve an LED share in
this segment of 30% by 2025. The high demand for landmark buildings also
favours architectural lighting

Rest of world:

The rest of the world – Latin America, the Middle East, and Africa –
accounts for a much smaller share than the other regions covered in the

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survey in terms of the size of both their total general lighting and LED
general lighting markets. LED is nevertheless expected to gradually
penetrate these regions depending on application, though the speed of
uptake is likely to be slower than elsewhere. The LED market share is
currently estimated at around 3 percent in each of these regions. It is
expected to rise to 35 – 40% in 2019 and 55 – 60% in 2025. This is mainly
driven by the growth of major cities and urbanization in Latin America and
the Middle East.

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FINDING

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 8. FINDING
1. A study on the Indian lighting fixtures market shows that the most
common design categories are: -
a. Ceiling fixed/suspended: Ex. Pendants, chandeliers etc,
b. Wall mounted/suspended: Ex. Scones, torchieres, etc,
c. Portable: Ex. table lamps, bed-side lamps, etc,
2. With regard to the prime purpose and need for decorative lighting, the
end users would be people who: -
a. have a good taste for lighting designs and style
b. have an understanding of various moods and occasions
c. are smart/luxury home occupants
d. are open to innovative and new ideas
e. would invest a little more than others for ambience and feel.
3. In case of new product LED lighting is expected to eventually
replace incandescent and halogen as a result of this combined with its
other benefits, such as low energy consumption, lower heat
generation, and greater design flexibility, once LED costs fall.
4. LED market share as per geographic region
a. North America, which is expected to rise to over 45% in 2019
and around 70% in 2025.
b. Europe’s LED market share is expected to be over 35% by
2019 and over 50% by 2025.
c. Asia’s LED market share is expected to be lower than that of
Europe and North America, at around 25% in 2019, rising to
almost (but not above) 60% in 2025.
5. Current LED market share in the office segment – where LED is a
slow mover – is estimated at around 2 % and expected to grow to
around 30% by 2019 and approximately 52 % by 2025.

44
6. Targeted age group would be around newly married to middle aged
families (25-50 years)
7. Another important factor is that both the flexibility and speed of
colour control are limited in traditional lighting. LED has overcome
these drawbacks and created new applications, such as media façades
and some entertainment lighting.
8. A further market trend will be white LED market share. Although this
is more expensive than RGB, LED symbolizes energy consciousness,
and architectural lighting is widely defined as the high-end building
lighting application that tends to use advanced technologies.
9. Decorative LED light is likely to penetrate the current fluorescent
lamp segments as well in the shop segment by emphasizing its
features of light quality and design flexibility, especially in the new
fixture installation market.
10. Brand companies acquiring Certifications like- BSTI, BUET, CE,
IEC, ISO, SUPER STAR R&D, Wide Voltage Range, Environment
Friendly etc.
11. LED needs to compete with HID, and LED will face difficulties in
replacing very-high- brightness applications such as stadium lighting,
where HID is expected to maintain its strong advantage.

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CONCLUSION

46
 9.CONCLUSION

In the post LED lighting era, companies who have production cost
advantage will provide manufacturing services to brand and channels. And
for those who have strong brand equity and extensive distribution channels,
they will focus on R&D, innovation, marketing, and channel operation.
These companies will lead the way in lighting development on the global
stage, and continue to provide premium energy-efficient lighting to end-
users around the world.

The main challenge is that there is a lack of supporting incentives to

switch to sustainable lighting systems in academic buildings. There are no
standards for these on the macro- and micro-scale for academic buildings,
such as during the procurement documents or as regulations by agencies,
ministries or local governments. As LEDs are a relatively new lighting
technology, there are many different design manufacturers. Due to this
technical complexity, it would be beneficial to train the stakeholders in
lighting who are involved in design and installation of lights such as
architects, building management, etc.

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LIMITATION

48
 10. LIMITATION

1. The research work is limited within the time frame.

2. The main limitation of the study is to access to information which

hampered to study some different aspects and analysis. Published
data on related topic is not much available.

3. The project would be limited to the extent of material received

from the company.

4. Relevant information about the products, their price, usage &

market was not given by the respondents.

5. Data survey numeric analytics is highly confidential, so

organization doesn’t disclose it properly.

6. While conducting the market audit, it was difficult to collect

accurate information from both wholesalers & retailers...
7. Making appointments to the Management personnel is tough
job, because they are very busy.

8. Secondary research Some of the information is not suitable to

classify or to use

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RECOMMENDATIONS

50
 11. RECOMMENDATIONS

1. New research technologies have put traditional market research firms

in a tough spot. So Instead of utilizing the expertise of market
research & consulting firms, companies are opting to save money and
do it themselves. It starts with first determining what needs to
change, what’s the most efficient way to change, how much that
change will cost – in terms of time and money, what’s the results after
deployment of the change etc. When facing an already scary situation
of lower margins, this can be a very big pill to swallow.
2. Offshore partners that reduce the cost of hiring, training, execution,
and administration
3. Process standardization to reduce wastages
4. An automation ecosystem
5. Many firms turn to strategic consultants for help, but the wrong
consultant could leave a business in even deeper debt, rather than the
other way around. So, if you’re employed by a market research firm
and find yourself in this situation, my recommendation would be to
find a single strategic partner that is laser focused on two key business
performance metrics: top line growth and improving margins.
6. These metrics are essential for attracting investment firms and
encouraging higher sale value. They are also constantly monitored
and tracked by the industry at large. The pressure to meet these
metrics flows down to all members of the market research firm,
including the Head of Client Services, Head of Operations, etc.

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 BIBLOGRAPHY

https://www.indexmarketsresearch.com/report/global-decorative-
lighting-market-4/101394/
http://www.technavio.com/
https://www.imarcgroup.com/indian-smart-lighting-market
https://www.businesswire.com/news/home/20180704005071/en/Global-
Decorative-Lighting-Market-Analysis-Forecasts-2018-2025
http://www.dsource.in/sites/default/files/case-study/decorative-lighting-
design/introduction/file/decorative-lighting-design.pdf
https://images.app.goo.gl/byd975WJSH7EYj1EA

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