LED Growth Exploding

Our friend Bill Attardi at Energy Watch shared interesting data he obtained regarding the exploding growth of the LED market … and the growth is startling and has major ramifications relating to the LED market.

Here shared this five year chart of LED luminaire sales:

Source: NEMA, per Bill Attardi

So, what does this tells us and what questions should distributors be asking themselves?

The outdoor market is an LED market.  While the %’s may not be 100% accurate (as not all manufacturers share information with NEMA), the trend is evident.

Indoor is quickly going the same way.

Given that LEDs by definition are electronic products, distributors need to become more adept at managing electronically-oriented products.  This relates to:

• becoming accustomed to continuous new product introductions from suppliers which requires purchasing acumen, sales training / awareness and marketing of the new products, their features and to the appropriate markets
• inventory that obsoletes itself (consider what this may mean for supplier return strategies)
• the need to closely manage inventory while also developing a discount strategy to ensure that they don’t retain old product too long
• products where pricing continuously drops
• greater commitment to product training for all staff as well as a need for specialists (unless you want to be an order receiver / quotation engine)
• conversant with the “Internet of Things”
• understand the usage of lighting controls