Lightyears
A new brand and reimagined product line transforms a company’s fortunesLightyears
- Country
- Denmark
- Business type
- Product SME
- Investment
- Sales royalties
- Time
- 10 years (ongoing)
- Design
- Individual commissions
Background
Lightyears began life as
family-owned business Horn
Belysning, growing to become
Denmark’s second largest
lighting company in the 1980s.
During this period the
company boasted an annual
turnover of around 100 million
kroner (€13.5 million).
Their product line at the time
was a mix of the
company’s own models and generic
lamps manufactured in
China, these lamps were imported
and sold in bulk to
clients including German retail
chains and IKEA.
The problem with that business concept was that it was very simple to copy. It was far too easy for the customers to make the trip to China themselves and cut out the middleman.
The loss of crucial customers resulted in a decline in the company’s fortunes over a number of years, and saw their turnover drop by two thirds – a fresh approach was needed.
How design helped
In 2004 Lars Østergaard Olsen
took over as Managing
Director, he knew right away
that a transformation was
needed in order to save the
company and create
sustainable growth.
To kickstart this process,
Lars hired a product and
development manager with
extensive design experience
–
Rasmus Markholt. Together
they began a journey to
transform the ailing firm
into an internationally
competitive business with a
compelling product line of
its own.
Their analysis identified a
gap in the market: there
was no shortage of cheap low
quality lamps, and lots
of expensive high-quality
lamps, but what if you could
sell high quality lamps
cheaper than the
competition?
To do this, they defined and
implemented a new
design-led strategy and a
complete rebrand.
They began by renaming the
Danish company Lightyears,
a brand more suited to the
international market, and
one that helped communicate
the company’s shift from
selling generic lamps to
designing high quality
lighting.
With a new brand in place
and a clear strategy,
Lightyears reached out to
leading designers to help
create their new range. The
company couldn’t offer
large pay cheques, but
instead offered the
designers
royalties from each lamp
sold. The designers had to
be
prepared to take a chance,
but many were, and this
resulted in some unique
collaborations.
Working with top designers like Cecilie Manz and Jørn Utzon, the company were able to introduce 10 new products to market for their relaunch as Lightyears.
With a design product, the competition simply can’t outmanoeuvre you with lower prices. Our designs allow us to stand out in this huge crowd – it’s not like there’s any shortage of lamps in the world.
Outcome
The results of
Lightyears’
design strategy
has
been
overwhelmingly
positive,
turnover in the
first year was
double what they
had projected as
the company’s
product line
became
dramatically
more
competitive.
Their unique
lighting range
included the
Caravaggio by
Cecilie Manz and
the Concert by
Jørn Utzon which
are now stocked
by retailers in
over 50
countries
worldwide. The
designer’s
names and the
quality of the
product opened
doors to new
markets and
rapidly became
bestsellers.
Lightyears lamps
now hang in the
Sydney Opera
House and have
become a huge
hit
with customers
worldwide.
2014 marks the
third year in a
row that
Lightyears has
qualified as a
“gazelle
company”
meaning it
experienced
continuous
growth over
the preceding
four years, more
than doubling
its
revenue or gross
profit in that
time.
At the heart of
Lightyears’
success was the
focus that their
design strategy
gave them –
allowing them to
shelve the
products that
were
not benefitting
the company and
build an
international
reputation for
quality.
It’s great to sell a product that you can really vouch for. That said, like any company, we want to be profitable. If there was no money in using design we wouldn’t be doing it.
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