L&E well placed as Asian lighting sector shines

Despite the expected fierce |competition, L&E, the country’s
 leading lighting solution pro-vider and manufacturer, is not worried, as it has kept ahead of other players for years by transforming itself from a manufacturer focused solely on lighting equipment into a solution provider, Pakorn said.
He said lighting makers in the US and Europe faced markets that had reached saturation point. Meanwhile, their economies are beset by many problems that pose obstacles to product development. Asian countries such as China and South Korea, on the other hand, showed more creativity in terms of development, and demand for lighting products and solutions is increasing in the developing countries in this region.
Most Southeast Asian countries are growing – and will continue to grow – very fast, he said, and their property sectors will grow in line with them. People from rural areas are moving to live in towns. New residences are needed to serve this transition. Construction of office buildings, hotels, shopping centres, hospitals, condominiums and facilities for service businesses is increasing as well.

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Pakorn said Myanmar and Indonesia were good examples of fast-growing countries in this region whose property sectors were expected to expand rapidly. These are the markets that L&E wants to enter.
Tourists and foreign investors travelling to Myanmar face problems finding residences and hotels, he said. The country has been closed for many decades. Now that it is undergoing reform, it has become very attractive among foreign investors. Its property sector is insufficiently developed, he said.
Indonesia’s gross domestic product grew by 6.5 per cent last year from 2010 and is expected |to keep outpacing other Asean countries. Foreign direct investment in Indonesia last year |was US$19.3 billion (Bt598 billion), the highest in Southeast Asia.
Pakorn said demand for creative lighting for buildings |would grow in the region for |these reasons. Some manufac-turers that support the lighting sector, such as chip suppliers |– primarily in China and |South Korea – seek opportunities. This will create intense competition.
The lighting market in Southeast Asia is worth Bt55 billion to Bt60 billion per year.
“China produces lighting products in huge volumes. The country may also move into |making high-value-added |lighting equipment as well. Manufacturers that want to |survive must be able to provide solutions to their customers,” he said.
Pakorn said the company had predicted this trend for years. Hence it has shifted from being simply a lighting-equipment manufacturer to acting as a provider of solutions ranging from consulting and designing to manufacturing.
The company plans to invest Bt300 million over the next few years to increase its capacity, resulting in a doubling of revenue. It will also aggregate its nine brands into one L&E brand.
“The company is now the |market leader. Our next target |is to be the leader in Asean,” Pakorn said.