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The walls in the busy main office of Lightyears in the Port of Aarhus feature clippings with praise for the company’s lamps from some of the most renowned design magazines in the world, including English Wallpaper and German md.
”When we first set out, my product manager said that once one of our products had made it into md, he would retire a happy man. But even though by now, md has done a full three pages on our first product series, I have been able to talk him into staying on,” says Lars Østergaard Olsen, managing director in the flourishing company.
Outlook: bleak
The outlook was anything but bright three years ago, when Lars Østergaard Olsen took over as managing director of the failing company. Under the name Horn Belysning, the company was Denmark’s second-largest in the lamp trade in 1980’s, with an annual turnover around 100 million kroner. The customers included FDB (Danish Consumers Co-operative Society), various German retail chains and IKEA. The product line was a mix of the company’s own production and lamps bought and manufactured in China. 50-kroner rice paper lamps alongside the 8000-kroner ”Kongelys” Lamp. But the bulk of the product line consisted of anonymous standard items from China.
”The problem with that business concept was that it was far too easy to copy. It was far too easy for the customers to make the trip to China themselves and cut out the middleman,” says Lars Østergaard Olsen, and that is exactly what happened. The customers began buying products straight from China and dropped away, one after another.
Flogging dead horses
When Lars Østergaard Olsen took over the company, the development had been downhill for years, and turnover had dropped by two thirds. It was time for a turnaround.
”In order to succeed in business, you have to offer something that is better than or different from the competition, otherwise you’ll disappear in the crowd,” says Lars Østergaard Olsen. ”And you have to quit flogging dead horses – no point in continuing to push products that don’t really sell; they have to go.” Step one was a thorough clean-up of the product line to ensure direction and focus. To do so, the company put in an ad looking for a Product and Development Manager.
A gap in the marketplace
And Rasmus Markholt fit the bill perfectly. He had previously worked with the Italian designer Joseph Forakis and Danish lighting manufacturer Louis Poulsen.
”At first, I was almost embarrassed to say I was working for Horn Belysning, but I could see the potential. It’s fun to work in a place that has the guts to take a chance,” says Rasmus Markholt.
And Lightyears had guts. An analysis of the lamp market had convinced the new director that there was a ‘gap’ in the marketplace: There was no shortage of cheap, low-quality lamps. And there were lots of expensive, high-quality lamps. But what if you could produce quality lamps cheaper than the competition? Horn Belysning already had the necessary contacts to skilled manufacturers in China. All they needed was quality lamps. And this is where Rasmus Markholt’s design experience came into the picture.
Design philosophy with consequences
”We defined our design philosophy from scratch,” says Rasmus Markholt, ”and that in turn led to other important decisions. We decided to relocate to the Port of Aarhus from Aalestrup because the environment here reflects the momentum and energy that define our profile. That is also why we decided to replace the company name with an English name. From day one, our strategy aimed at the global market.”
And it was not just the name that changed. The original product line from Horn Belysning proved incompatible with the new strategy, so it was decided to start over from scratch.
Lightyears’ design philosophy dictates certain colours and materials that all designs must stick to. But it is not just about the surface of the lamp.
”To us, our brand is defined primarily by the fact that we produce light. We don’t make lamps for purely decorative purposes. Lighting design is technically complicated. Therefore function takes precedence in the design of the lamp,” says Rasmus Markholt.
A deliberate choice of designers
Once the design philosophy was in place, Lightyears made a list of designers who might help implement the philosophy. Few of them had prior experience with lamp design. Most were furniture designers, so the first task for Lightyears was to teach them to work with light. But the choice of furniture designers was not an arbitrary decision:
”Our strategy was to market the lamps to furniture retailers such as Illums Bolighus, and we wanted to use the name recognition of the furniture designers to gain access to this market.”
The decision to include the world-famous architect Jørn Utzon as one of the designers was also far from arbitrary. His name could open the door to the international market.
By now, one might think that the inclusion of a couple of fairly unknown names might reflect mere necessity. But this decision too was very deliberate, as Rasmus Markholt explains: ”We were hoping to spot up-and-coming designers and help them make a name for themselves. In this way, their name would be more closely associated with us. This has certainly been the case with Cecilie Manz. She was so talented and had done many outstanding designs, but it was the lamp Caravaggio, which she designed for us, that earned Cecilie Manz her first commercial success.”
Design has to sell
”To me, successful design is design that sells,” says Lars Østergaard Olsen. The designers agree, and Lars Østergaard Olsen describes the process of working with the designers as a positive experience all around:
”Some of them are people that you read about in magazines. Celebrities. So of course, initially, I approached them with a certain sense of awe. But they turned out to be incredibly easy to work with. One of the most positive surprises for me in this entire process was the fact that we were able to assemble such a formidable design team although we had yet to make name for ourselves,” says Lars Østergaard Olsen.
”I am deeply grateful for the trust they showed us, and it’s not that we were able to offer them fat pay checks. On the contrary. Their money comes from royalties, so the designers also had to take a chance that only pays off if our plan succeeds.”
In the top ten
Most signs shows that this chance is worth taking for the designers. About a year ago, Lightyears was ready to present the full range of new lamps. They made the launch at Copenhagen International Furniture Fair, and the presentation made the retailers sit up and take notice.
”We had drawn up a wish list of retailers where we hoped to have a presence. And already, we are very close to having reached 100% of them,” says Lars Østergaard Olsen. And the retailers love the new products. Purchasing Manager Bo Overgaard, Illums Bolighus, describes the success:
”We have only carried the Lightyears line for about a year, but already, several of the lamps have made our Top Ten list of best-selling lamps. Cecilie Manz’ Caravaggio and Hans Sandgren Jakobsen’s Radon are particularly popular. They are outselling some of the lamps that we have carried for more than ten years.”
Exports to 25 countries
In the domestic market things are going well but already the export market exceeds it. Today Lightyears exports to 25 countries.
The Japanese customers love the collection, and Lars Østergaard Olsen has particularly high expectations for the Japanese market. The Australian public is also enthusiastic, and the Sydney Opera House has already bought some of Jørn Utzon’s lamps. And in Europe, the Lightyears collection is present in Design Meccas such as Madrid, Barcelona and Porto.
The benefits of design
To Lars Østergaard Olsen, working with design as a business strategy is a new experience. But he is convinced that it is the right choice. The benefits are apparent.
”Design affects everything. It gives the whole company a positive image. And with the current shortage of labour, it is worth noting that it also helps us recruit young, qualified employees. We make a strong and dedicated team, because most of us have helped build the business from scratch. That creates a strong sense of loyalty and commitment, which is a strong competitive factor,” says Lars Østergaard Olsen.
”With a design product, the competition can’t simply outmanoeuvre you with lower prices. You are futureproof thanks to a product that the competitors cannot copy – at least not legally. Design is a very powerful factor. And our design enables us to stand out in this huge crowd – I mean, it’s not like there is any shortage of lamps in the world,” he says with a smile.
According to Lars Østergaard Olsen, the best part is the joy and pride that comes from working with well-designed products. ”It’s great to sell a product that you can really vouch for. That said, of course, like any company we aim to be profitable. So, if there was no money in using design, we would not be doing it.”