There's Good News and Bad News

The good news: Prices continue to drop at box stores, which benefit the consumer. The bad news: Consumer reach and education are not quite keeping up.

While LED prices continue to drop—gradually—end-users are embracing the benefits of a maturing technology in the form of price decreases in retail products. LED products are available at big box stores at better prices. For example, Philips’ 60 W replacement is offered in Home Depot stores in California (the San Francisco Bay Area) at $17.97, and CREE’s Ecosmart 65E replacement LED downlights are available at $24.97. In a presentation at a DOE workshop, Home Depot confirmed the continuous drop in pricing for several categories of LED products in their stores. In-store promotional campaigns also testify to their commitment to advancing LED products.

However, the shift in consumer mentality does not occur at the same rate the industry progresses. New ways of selling LED products are needed, and the immediate need of consumer education can be addressed in the stores.

Because residential lighting in the U.S. is purchased at big box stores (Home Depot, Lowers, Target, WalMart, Ikea), they play the role of gatekeeper and have direct access to the consumer. The decision-making process happens while the consumer is standing in front of the shelf, evaluating the product. Consumers usually come prepared, as they heard about/ saw/ read about LED lamps, but the motivation behind the buying decision is personal. Based on my conversations with sales staff at the box stores ( as well as personal observation) it seems clear that sales support and clear explanations of the benefits of LED technology—and a comparison of different LED solutions—do add value to the purchase and could be critical factors in the decision-making process.

Manufacturers provide a lot of useful information about their products on their websites, but consumers are not spending time studying and comparing product specifications. So, the critical go/no-go decision happens in the store, in front of the bulb. It’s time to transfer the knowledge on to the floor and, more importantly, translate it into simple and clear terms.

LED Bulb Equivalents of 100W Announced, but Where Are They?

The launch of every new LED lighting product or a project is exciting. It’s challenging to stay current with almost daily new product announcements. However, the release of 100W equivalent LED bulbs got me thinking: how truthful are company announcements regarding the release of their product?

For example, Switch made an announcement about the launch of their 100W equivalent LED bulb in 2011.  Then there was another announcement about the launch of 100W equivalent in 2012, but when I recently reached out to Switch with the question of  when can we finally buy the bulb, I was told to attend Lightfair, in Las Vegas next week, where the entire product family will be introduced. Yet again. The website doesn’t have any information related to sales or technical specifications, either.

Today GE announced the launch of their 100W bulb equivalent, which will be available for mass manufacturing in the first half of 2013 and the price is yet to be announced. Philips also announced the launch of their 100W equivalent. And finally, Lighting Science Groups announced the launch of the prototype for 100W replacement lamp. Sylvania is also in the picture.

These simultaneous announcements seem to be heavy-handed promotion on the eve of Lightfair, but it will be interesting to see who will be the first to actually deliver the final product to the shelf.

Does Europe Lead LED Adoption?

Another Light + Building expo is over, leaving many of us with the task of sorting through new business contacts and thoughts on how different are the approaches to lighting in Europe and in the U.S.?  My first trip to L+B in Frankfurt left me reflecting on the differences in the lighting market in Europe and the U.S. generally, and in LED lighting in particular. After walking through the exhibition halls and talking to exhibitors, I am left with the following observations:

The first is in regards to regulations. There are multiple organizations in the EU, including Global Lighting Association, CELMA, and ELC that are promoting the standards for the European Lighting industry. The unification of LED lighting for all 27-plus nations using the same standards is quite challenging for EU officials at the moment.

Despite this, LED lighting is more widely accepted by consumers in the EU than by those in the U.S. This judgment is based—not on speculation about official penetration rates— but on the number of exhibitors that offered LED lighting products at Light + Building, and the numerous claims made regarding sales, the number of pilot projects, and the manufacturing of LED products in the EU that were made there.

Second, the U.S. Department of Energy’s initiative to promote SSL and to educate consumers and buyers about the benefits and quality of LED lamps is well-regarded, if not praised, in Europe. European manufactures admit that the DOE’s policy is quite effective in promoting LED lighting and higher quality standards in the U.S. Getting the message across to one nation is definitely easier than reaching all the members and non-members of the EU.

Third, EU LED lighting manufacturers have a preference for growth in local markets and have fewer ambitions to serve global markets. I asked several exhibitors (small to mid-size, and some publicly traded companies with interesting LED lighting solutions and proven track records in their country of origin) whether they had global ambitions or would consider expanding their reach to the U.S. More often than not I heard that they want to stay local and grow in the EU (or UK). Some would not even consider joint venture opportunities. Reasons for staying local and not expanding into particular parts of the world, however, vary.

Fourth, Many exhibitors are proud to have 100% European manufacturing. Many companies offered their LED products for the first time at the fair in hopes of scoring some major sales. I asked if they would, if orders exceed their manufacturing capabilities, consider outsourcing the manufacturing.. The majority of companies would prefer to grow their manufacturing locally rather than outsource it.

Fifth, LED lighting is all about energy savings, but it can be aesthetically pleasing.  Many designer solutions provided by European manufacturers were simply stunning. The fact that these beauties also save energy made them even more attractive.

Finally, business during happy hour or pleasure during business hours seemed the same at Light + Building. At a 9 a.m. business meeting, you are just as likely to be served beer as coffee. While it did not work for me, the approach is a success with many others.

Ignorance Stroke Fear of LED Technology

I have read a widely quoted article written by EarthTalk regarding the hazard of using LED Lighbulb.  The article seems to use information from a paper written by a group of scientists from UC Irvine.  Here is a quote from the article:


      "Ogunseitan (one of the UC professors) adds that while breaking open a single LED and breathing in its fumes wouldn’t likely cause cancer, our bodies hardly need more toxic substances floating around, as the combined effects could be a disease trigger.  If any LEDs break at home, Ogunseitan recommends sweeping them up while wearing gloves and a mask, and disposing of the debris -- and even the broom -- as hazardous waste."
                                                   ~ "LED Lightbulb Concerns"
                                                       By EarthTalk
                                                       Apr 14, 2012 - 10:30:17 AM


I understand UC Irvine group has done extensive testing on environmental impact of LED by looking at all the material that goes into making it.  However, the quote above that talks about “breaking open a single LED” gives the impression that it is the same as  “breaking open a LED light bulb”, just like how you would break a CFL tube.  Anyone who knows what a LED is knows that nothing will happen if someone smashes open the plastic that cover the light bulb. There is no mercury vapor that will arise like CFL  The LED chips inside are tiny.  If you want to “break a single LED”, you have to deliberately yank the chips out and hammer them to pulp to deserve the type of treatment mentioned.

If one talks about taking a hammer and smashes a Xmas light to powder to find out the toxic content, then how about smashing up a cell phone and measuring the toxicity of these common consumer products?

This type of articles shows complete lack of understanding of LED technology and it creates groundless fear based on ignorance.  We in the industry have to spend more resources educating the public about our technology before the baseless negative view takes hold.

I contacted one of the professors who wrote the paper and she agreed with my assessment. I have also written to Earthtalk but they have not replied.

Do we need the best LED bulb, when we could have the right one?

Everyone agrees that LED bulbs save energy. Many people like LED bulbs. Those who really like them, buy them, but many people who would like to retrofit their homes with LED bulbs (not just one or two units to try out), might have second thoughts simply because LED bulbs are still expensive.

Currently, the 12W LED equivalent of the 60W incandescent light bulb costs around $25 (Philips 'Endura' at CA Home Depot stores, for example). Home Depot sales associates indicate sales are steady, but the lamps mostly attract the attention of early adopters and/or those who are willing to pay $25 for a light bulb.

Most industry players consider the “sweet spot” in terms of pricing for sales of LED replacement bulbs to be $10 for the 60W incandescent replacement. Recently, I had a conversation with a general manager at a Chinese manufacturer, that exports 80% of his LED bulbs to Europe. According to him, the industry should focus on manufacturing good quality lamps the equivalent of the 60W incandescent lamps with compatible light quality, such as 2700K, and the CRI of 95, dimming features, and everything else a good quality LED bulb has to offer; however, the lifespan of these lamps and — consequently, the pricing — should be not 25,000 hours at $25, but 10,000 hours at $10. His reasoning is that sockets are already there and filling them with the correct light is more important than waiting for the best solution.

From the manufacturing point of view, achieving the desired $8–10 price range, using the standard 25,000 hours benchmark is unrealistic; durability and quality come at a price. The question is, then, can manufacturers make LED bulbs that are just right?