The lighting industry has created an innovation through the introduction of light-emitting diodes (LED) lamps, whose energy consumption is 90 percent more efficient than conventional lamps and can last for 20 years.
Because 19 percent of the world's energy comes from lighting, the promotion of the use of LED lamps will play a significant role in the global energy-efficiency program.
Royal Philips Electronics said it wanted to further develop innovation in the lighting industry for the program.
Philips claimed significant progress on its "green" innovations by launching its EcoVision4 program in 2007, which set targets for green sales, green innovation investments and for increased operational energy efficiency by the end of 2012.
About 31 percent of the company's total sales in 2009 stemmed from the sale of "green products", it states. The company will reach its "green innovation" investment target of a cumulative 1 billion in 2010.
In order to understand this new innovation, The Jakarta Post recently interviewed Ren* van Schooten, CEO Business Group Lamps of Philips.
The following are excerpts of the interview:
Question: What advantages do LED lamps offer as opposed to other technologies in the market?
Answer: Energy is a big cost item, for example energy use in hotels. Our products are energy-efficient with up to 85 percent that are energy saving. Our products also have a long life. As a result, you will save on maintenance costs. It's a breakthrough; it's a revolution.
LED products require people who are ready to invest money in large amounts. But they will have good rewards in terms of payback.
So, energy-saving becomes the primary issue?
Yes. The efficiency of energy is the biggest advantage of our products - energy saving and longevity. These products can save energy by up to 85 percent, as compared to other products of the same kind. It's a huge saving.
Particularly, you know, state electricity company PLN is struggling to supply enough energy. In this regard, I think Philips can play a key role in encouraging Indonesian customers to adapt to energy efficiency products.
How has the global market responded this new product?
If you look at our sales, there is a potential acceleration. We see that the growth of this kind of product can easily double.
We can't say the exact figures on the sales target. We can easily assume, however, that these kind of sales will double every year.
There will be more show of greater professional solutions, and in more professional areas in countries where energy prices are high.
How optimistic are you that the Indonesian market will welcome LED lighting as the newest innovation of Philips?
Our LED lighting is an energy-saving product, which is enormously important in Indonesia.
As a matter of fact, Indonesia is our number one country for energy-saving products. Energy consumption is a key issue for Indonesia's environment. As soon as we have solutions that are environmentally friendly with affordable prices, there is no reason to dismiss this solution.
The Suramadu Bridge is a good example on how our products have been accepted by the Indonesian market. This bridge is lighted predominantly by our LED products. So, LED lighting innovation isn't just about illuminating, but also the ability to create ambience atmosphere, enhancing life with light.
Philips isn't the only LED lighting manufacturer in Indonesia. Can you highlight the nature of competition here?
Competition isn't just a new thing for us, although we have been the leader in lighting for many years. In competition, some new players will arrive. They may have the technology background. But it isn't just about the technology.
Our innovations are based on people's needs. We constantly listen to ensure that we address people's needs wherever they are. This is something that we have been working on for decades and we take a leading stance. We have a more than 40 percent of the market share in Indonesia. We want to increase, strengthen and maintain our achievements. We'd like to grow our market share. Globally, there are many players. We want to consistently engage in the market.
What is the biggest obstacle in doing business in Indonesia?
Both the biggest obstacle and opportunity is that lamps or lighting systems here aren't replaced often enough. We need people who can say, "Let me experiment with new ideas and let me prove that we can provide benefits".
People have to be brave enough to say that (LED lighting supports energy efficiency and is environmentally friendly. We see no obstacles, only opportunities. Even for households that don't have electricity, we will be attempting to implement off-grid solutions to these areas as well. We see tremendous opportunities in the market place.
