Thursday, December 18, 2014: Chinese lighting solutions company, Opple, is the latest entrant in the Indian LED lighting segment. The Rs 30 billion company has a presence in more than 50 countries worldwide, employs over 6000 people globally, and aims to expand even further. Opple has recently opened its first experience store in Chennai and aims to be the one of the largest LED lighting company in India in the coming years. In conversation with Shweta Sengar of LED Bazaar, Naveen Saxena, country head, Opple Lighting India, talks about its foray into the Indian market and its future plans.
LB: Tell us something about Opple.
Opple is a global lighting solutions company. It is one of the leading brands in the LED lighting space. It is a young lighting company just 18 years of rich experience in lighting solutions. The company’s headquarters is located in Shanghai. Though we are a company based in China, we have a very international orientation in the business space as well as in relation to the people. Opple has sales operations in more than 50 countries. We are a completely international company with total control over the entire value chain of lighting. We have a huge R&D set-up in China, which employs over 400 engineers. Our state of the art manufacturing setup, which is one of the largest facilities in China, manufactures LED products and lighting solutions. The company has an ultra modern supply chain and the best of people to manage its operations. Opple also specialises in retail lighting in a big way. It has more than 4000 brand stores all over the world.
LB: How do you view India as a market for LED lighting?
In my opinion, India is a very interesting market for LED technology, and the best part about Indian consumers is that they are open to new technology. As far as adapting to the new technology is concerned, people are looking at it with interest, which has been generated mainly due to two reasons. The first is the shortage of energy, due to which consumers are always on the look out for energy efficient solutions. Second, customers are getting much more aware. They now understand that they cannot shut down ACs and refrigerators but they have an option to save on lights. That is where I think Indian consumers are getting smart, i.e., adapting to the new technology. Consumers want products that are hassle free, energy efficient and that offer value for money.
LB: What are the main challenges for Opple as far as the Indian market is concerned?
Whenever you enter a new market, you face a whole set of challenges. However, the good part about Opple is that though the brand is new in India, the consumers are not new. This may be the first time we are talking about the brand in the Indian market, but we have vast experience in this segment. The people behind Opple’s operations in India have a cumulative experience of over 100 years. We understand the Indian lighting domain in detail. We understand the consumers, channels, applications, etc, and come with a vast knowledge of the lighting industry.
LB: What is the USP of Opple’s LED products?
Opple’s approach is to offer complete lighting solutions. We have an array of products for the retail space, the hospitality sector, the consumer space and other commercial lighting applications. We have a complete range of offerings for our customers and consumers. We also understand that the LED space demands fast response to continuous changes in the market. So you need to be an agile company, so that you are flexible, quick in operations and can deliver solutions speedily. In the world’s most competitive market, which is China, we are No 1. This gives us the ability and confidence to compete in tough markets as well.
LB: What is Opple’s pricing strategy for the Indian market?
Opple’s pricing strategy is driven by customer feedback. We conducted a market survey in order to study and understand what price points the customers are looking at. There is a huge measure of interest in LED technology but, at the same time, the market is very price sensitive. Customer enquiries are based on the ‘value for money’ proposition. Consumers only want to pay for the technology and not brand. This is one point where Opple is bang on – in its pricing. Opple is offering lighting solutions at very competitive prices. And when I say competitive, it may be 10 per cent cheaper than what other a brands are offering.
LB: What growth do you see for Opple in the times to come?
The LED space is growing at >50 per cent as per industry estimates and would grow much faster as the technology becomes more efficient and affordable. By 2020 India would move to 80 per cent share of LED products in lighting. I may not be able to give an exact growth figure for the future, but considering the rising demand for LED lights, I believe Opple’s growth will be outstanding.
LB: What are the latest products in Opple’s kitty?
We are entering the Indian market with around 150 stock keeping units (SKUs). I am very happy to share that all of them are LEDs. The entire product portfolio meant for the home lighting, commercial lighting, hospitality and retail space is based on LEDs. In my opinion, this is a big differentiating factor for any brand. Most of the brands are operating on two fronts. On the one hand, they are promoting LEDs but, on the other, their business is surviving on bulbs and tubes. Opple is a completely LED lighting solutions company. We are set to introduce our entire LED portfolio in India.
Also, the products we introduce here will be based on the feedback from the consumers. Customers expect a certain life span for a product along with several preferences for colours, designs and numerous other parameters. We are looking into all the parameters and our product portfolio will be according to the needs of the customers. The products we are launching in India are made for India. All the features, in terms of design, are manufactured keeping in view the preferences of Indian consumers. We have placed special emphasis on bulb holders, packaging is made more consumer friendly since in India symbols are understood better than written instructions, and so on. The complete product development is done keeping in mind the Indian consumers.
LB: What about your manufacturing plans for India?
It is too early to comment on a manufacturing establishment in India. Opple is a global company and we have multiple manufacturing units all over the world. As a multinational company, we look at the viability of establishing a manufacturing unit. To start with, we will draw the best products from our international facilities and probably, after a couple of years, we may also look upon India as an ideal location to set up a manufacturing facility.
LB: What are Opple’s future plans?
Opple is coming to India with long term vision and build sustainable business model which delivers international quality products to consumers at affordable prices. We are here to enhance the lighting standards and with our 360 degree understanding of lighting domain, bring solutions which are advanced and bring delight to consumers.
