'Customization, sustainability, premiumization' driving the $ 4.2 billion LED lighting industry in India

India has long moved on from just using good light. Like everything else, consumers are looking for smart solutions even when it comes to lighting. In an exclusive chat with Storyboard18, Nikhil Gupta, head of marketing, strategy, government affairs and CSR at Signify, Greater India formerly known as Philips Lighting talks about this change.

“From a decade ago where utility lighting was the primary focus, to today, where consumers prefer personalisation in their home décor, premium decorative and architectural lighting options, the lighting industry has seen a significant shift,” he said.

On the other hand, sustainability is increasingly prioritised, with consumers and businesses seeking eco-friendly and connected lighting solutions.

The Indian LED lighting market alone has reached US$ 4.2 billion in 2023. According to market research firm IMARC Group the market is expected to reach US$ 23.2 billion by 2032, at a growth rate (CAGR) of 20.4 percent during 2024-2032. 

Gupta talks about this growth, innovation and moving on from being a product based company to a value added solutions provider.

Edited excerpts

Signify has been talking about its transformation from a product-based to a systems and value-added solutions provider. How is this strategy driving growth, and how will you leverage innovation to maintain a competitive edge in the lighting industry?

Signify, formerly Philips Lighting has its roots in Philips & Co., which was founded in 1891 in Eindhoven, the Netherlands, and was the first company to commercially launch the incandescent bulbs. While Signify, became our new company name in 2018, we have been the world leader in lighting for more than 130 years. Signify continues to evolve in a rapidly transforming industry and has witnessed many waves of revolution, from incandescent to CFLs to LEDs to smart and connected lighting. We are a technology-driven company, emphasising innovation, sustainability, and a vision for the future of lighting. We continue to invest extensively in R&D to stay at the forefront of technical breakthroughs to position ourselves for success.

  Our brand and marketing strategy is centered around delivering smart, connected lighting solutions that enhance people’s lives while ensuring energy efficiency. By focusing on delivering end-to-end lighting solutions, we have been able to provide our customers with greater value and help them achieve their sustainability goals. Our strategy of providing integrated lighting systems has enabled us to offer a wide range of innovative solutions that cater to the diverse needs of our customers. We have leveraged our expertise in LED lighting, controls, and software to develop solutions that are not only energy-efficient but also smart and connected. This has helped us differentiate ourselves from our competitors and stay ahead of the curve in the lighting industry.

What factors are accelerating the adoption of advanced lighting solutions in India?

Today there are a host of factors that are accelerating the adoption of advanced lighting solutions in India wherein the ever-evolving customers are looking for technologically advanced products, data-driven, integrated smart solutions, energy efficient, longer lifespan, and better quality of light.

How are you attracting and retaining the right talent to support your transition and innovation initiatives?

We believe in fostering a holistic work environment where every voice is heard, every perspective is valued, and every individual feels a sense of belonging. We focus on investing in development programs, enhancing gender and generational diversity and nurturing, and retaining internal talent. Recognizing our employees as our greatest asset, we invest heavily in attracting and retaining top talent to fuel our transition and innovation efforts. We offer a challenging and rewarding work environment with opportunities for growth, cutting-edge projects, a supportive culture, flexible work arrangements, and competitive compensation packages to keep our valued team motivated. We've built a strong employer brand focused on sustainability, innovation, and diversity which help us attract and retain the right talent across different age brackets starting from GenZ to millennials.

  Can you elaborate on Signify India's recent financial performance, including key growth metrics, revenue figures, and profitability improvements?

As a policy, we don’t share financial data and metrics. Talking about India, more than 90 percent of the lighting market is currently LED, wherein we have seen an uptick in growth in the last few years owing to the increasing LED penetration, digitization, and adoption of connected systems, in homes and professional applications. In 2023, globally we invested 4.2 percent of our sales in research and development, successfully targeting key strategic technologies.

  Signify holds more intellectual property with the European Patent Office than any other lighting company and we are in the top ten of all companies headquartered in Europe by number of patents.

  How does Signify India balance the financial support required for innovation and R&D with maintaining profitability? Can you share specific examples of how these investments have led to product differentiation and market success?

We believe that innovation and R&D are critical to our long-term success, and we are committed to investing in these areas while maintaining profitability. We achieve this balance by focusing on developing innovative products and solutions that meet the evolving needs of our customers while also driving operational efficiencies and cost savings. Our R&D team in India works closely with our global teams to develop sustainable and energy-efficient lighting solutions that offer value to our customers while reducing their carbon footprint.

  One example of how our investments in innovation and R&D have led to product differentiation and market success is our Interact City solution. This is an intelligent street lighting system that uses connected LED lights and sensors to improve public safety, reduce energy consumption, and enhance city services. The solution has been deployed in several cities across India and has received positive feedback from both city officials and citizens. Going forward, we will continue to focus on these areas to drive growth and sustainability in the lighting industry.

    Can you elaborate on Signify's strategies for market expansion and revenue diversification in India? Have there been any recent market entries, acquisitions, or partnerships that have significantly contributed to growth?

Our brand strategy is anchored deep in innovation, customer-centricity, and sustainability. We are committed to delivering value-added lighting solutions across diverse sectors, from residential to commercial, industrial, and public as we continue to look at growth opportunities both organic and inorganic. In line with this approach, in the recent past we have brought Cooper Lighting, WiZ Connected, and Pierlite amongst others, under the Signify banner.

  What initiatives have been taken to enhance brand recall, especially after the change in name?

While we changed our company name to Signify, our leading customer facing brands remains to be Philips. We have been promoting multiple brands in India including Philips, EcoLink, Interact, Wiz, Dyanalite amongst others.  We have undertaken several initiatives to strengthen brand recall and our market presence. Integrated Marketing Campaigns across various channels including digital, print, television, and outdoor media is one of them. We also continue to introduce innovative lighting solutions that reinforce our brand's association with cutting-edge technology and sustainability. Each new product launch is an opportunity to remind customers of our brand and its values. Our CSR and employee advocacy programmes too among others initiatives have helped us maintain continuity, enhance brand recall, and build a strong connection with our customers under the new Signify brand name.

  What are the current trends and challenges shaping the lighting industry in India? How is Signify positioned to navigate these challenges and capitalize on emerging trends?

The lighting industry has always evolved in line with the market trends and customer demands across India. Today, customization sustainability and premiumization are the top three trends that are shaping the dynamics of the industry, driven by advancements in technology. From a decade ago where utility lighting was the primary focus, to today, where consumers prefer personalization in their home décor, premium decorative and architectural lighting options, the lighting industry has seen a significant shift. On the other hand, sustainability is increasingly prioritized, with consumers and businesses seeking eco-friendly and connected lighting solutions.  

At Signify, we're confident in our ability to navigate challenges and develop opportunities in the Indian lighting market backed by our product innovations, R&D, high-quality lighting solutions, commitment to sustainability, strong distribution network, and customer-centric approach.