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How to go further on the path of 'customization' in LED lighting products.

Sep 10,2021

Nowadays, with the rapid development of the commercial era, consumer demand for various products is continuously rising, making it difficult for traditional products to meet the high standards of market demand. Against this backdrop, experiential and sensory customized services and production are gradually emerging. Regarding the issue of 'customization', one can't help but ask: in the lighting and electrical industries, which companies are producing customized products? What types of products are suitable for customization? How do companies implement customization? What are the operational methods and challenges involved in customization?

Nowadays, with the rapid development of the commercial era, consumer demand for various products is constantly rising, making it difficult for traditional products to meet the high standards of market demand. Against this backdrop, experiential and customized services and production are gradually emerging. So regarding the issue of 'customization', one can't help but ask which companies in the lighting and electrical industries are producing customized products? Which products are suitable for customization? How do companies implement customization? What are the operational methods and difficulties of customization?

Customization involves the entire industry chain.

The emergence of customized production has changed the traditional model of 'production determines sales' and has also solved the problem of overproduction in the lighting industry. However, not all lighting companies are engaged in customization. For example, in the lighting industry, the production of lamps consists of multiple components, including hardware, chips, packaging, lamp beads, and a series of other products. If everything were to be customized, it would inevitably consume a lot of time and energy for companies, so currently very few lighting companies can fully achieve customization for all components.

Similarly, this is true for the electrical industry. Tu Xiaoying, chairman of Huizhou Electric Co., Ltd., frankly stated that personalized customization is referred to as 'flexible production' by companies, which concerns the entire process of process reengineering, craft reengineering, production reengineering, and logistics reengineering. Flexible production is fundamentally different from traditional mass production methods; it is a disruption of production models that transforms mass production into kit production, which also changes logistics and even marketing models... Therefore, currently there are not many electrical companies that specialize in personalized customization; most electrical companies may dabble in customization but do not develop it as their main business; rather, they need this segment to attract more customers, which is also true for other industries.

Which products can be customized?

Customization provides dealers or consumers with a personalized experience; therefore, it is a tailored activity that meets supply and demand. So what kind of products are suitable for customization?

Taking the lighting industry as an example, Yu Xiqing, marketing director of Hongguang Lighting, stated that crystal lamps, marble lamps, flower lamps, etc., can all be customized. Similarly, Cheng Zhongtang, general manager of Changpin (International) Home Lighting Chain Operations, also stated that currently in the lighting industry market, customizable products can be divided into two categories: one is decorative types including candle lamps, ceiling lamps, chandeliers, crystal lamps; the other is lighting types including downlights, spotlights, and landscape lights. Because these lamps can be designed and produced according to specific dimensions provided by dealers or consumers as well as their requirements for product color and material to meet their personalized needs.

Currently, personalized customization includes two aspects: one is that the factory's own night light art switches and ordinary art switches can be produced with customization; the other is that customers provide white switches themselves based on their personalized needs for customization," she added.

Interconnected processes affect everything.

Since the trend of customization is evident across various industries, what processes does customization actually include?

Some people say that the customization process for lamps can be summarized as 'measuring dimensions, lamp design, delivery installation, after-sales initiation'. It consumes a lot of human resources, material resources, and financial resources; it may even require establishing a department to handle it. Therefore, it can be said that customization is 'interconnected'.

The same goes for the electrical industry. Tu Xiaoying stated that currently personalized customization accounts for less than 10% of total sales; however, customized production is interconnected. This is because customization in the electrical industry includes two scenarios: one allows customers to freely select from the company's material library followed by sampling and customer confirmation before production; the other involves customers providing their own materials while the company offers design solutions followed by customer confirmation on plans and sampling before production. Only by operating this way can we more accurately understand customers' personalized needs. It seems simple but is actually not easy. An especially important step is designing a solution that satisfies customers based on their needs.

A tale of two extremes.

Although customization has become a trend, very few companies specialize in it. The reasons boil down to a comparison of advantages and disadvantages. So what exactly are the advantages of customization?

Some say that customization expresses individuality; others say it means taking paths others dare not tread; some say it represents non-mainstream choices. Tu Xiaoying admitted that while she isn't clear about the advantages of customizing other products specifically, she summarized several advantages of customization: first is meeting customers' personalized needs; second is that although the quantity of customizations may be limited, they are unique because they bring originally exclusive private custom switches and sockets into public life with the aim of allowing more consumers to enjoy a tastefully customized lifestyle at an ordinary consumption level; thirdly, night light art switches have more user-friendly functions; fourthly, delivery times are quick—ensuring goods reach customers within 5-7 days after sample confirmation.

Like a coin with two sides, customization also has its pros and cons. First of all, customization takes relatively longer time which may increase costs for companies thereby compressing profit margins further; secondly it increases production pressure on manufacturers and disperses energy too much which does not benefit innovation development; thirdly having channels or dealers does not equate to having sales; since customization lacks on-site product presentation it requires more point-to-point communication between relevant personnel and consumers along with person-to-person corresponding services and continuous tracking.
 

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