Page 72 - Lighting Magazine December 2018

ALA Conference Report
ACT NOW TO BECOME CONNECTED
Industry leaders from Lutron and Google/Nest discussed the role of lighting in today’s connected world and the opportunities on the horizon.
“Light is something you have to see and feel,” explained Michael Smith, VP/Residential Sales for Lutron Electronics. “And ‘intelli-
gent light’ is about delivering light how the consumer wants it, when they want it. I think what we’re really selling is joy — but how do you convey that?”
Door locks, doorbells, and thermostats are all household products that most consumers grew up with, but now they operate di erently – wirelessly – and smart bulbs and smart lighting xtures are join- ing those ranks.
“The Internet of Things has made our lives easier,” Smith told the ALA Conference audience. “When consumers go for a run, they don’t need to bring their car keys. While they are driving up to their ski house, they can set [the home’s] temperature to be warm before they arrive.”
This synergy between lighting and controls is also happening on the manufacturer level. For example, controls leader Lutron purchased architectural lighting xtures, controls, and lamp manufacturer Ketra earlier this year.
SMART HOME ADOPTION IS GROWING RAPIDLY An estimated 327 million households will have a smart device by 2021, 3x growth
Thriving in a crowded market lled with a vast variety of smart light bulbs and wireless control apps requires a di erent thought process. “We’re not selling things; we’re selling a feeling,” Smith stated. “That’s where we are taking the next chapter in lighting [as prices come down]. “You’re not selling xtures, you’re selling a lifestyle.” Smith pointed to Whole Foods Market®, Disney®, and Apple as leaders in shi ing the consumer mindset to one of seeking “experiences.” In order to succeed in this new retail era, lighting showrooms will have to adapt. “Disney has ‘Disney Magic.’ What are we doing to create lighting magic? What are we doing with our demo rooms [to show o that magic]?
“Google, Microso , Comcast®, Apple, and Amazon are be ing millions of dollars on the con- nectedness of homes,” Smith remarked. “You have to develop that experience [with lighting] or people will go elsewhere for it. You will be beat out by other channels.”
Smith added, “I love disruption — but it’s change, and fear of change exists in all of us. This [the con- nected home] is the future; I don’t think we’ll be going backwards to how things were.”
Along with these disruptions come challenges. “There is a lack of awareness [among consumers] as to how these products will make their lives easier,” Smith stated. “They will be wondering, ‘Where do I go to experience them?’ and ‘Who can I call to install it for me?” There are also concerns from builders who don’t have enough skilled labor to handle complex installations, so you will start to see builders standardizing some of these systems. It has to be simple,” he commented.
“Just because you haven’t sold a connected home product before doesn’t mean you can’t sell it in the future,” Smith advised. “This is a $53 billion market — what’s lighting’s piece of the pie going to be? This is our opportunity, but we have to embrace change.”
Gene LaNois, head of the Professional Channel at Nest, had a strong message for the audience. “We were a one-product company,” he said, speaking of the initial success before Google acquired the busi- ness and propelled it to new heights.
400
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100
29
327
220
147
Number of Smart Homes Globally (in Millions)
0 2015
2016 2017 2018
2019 2020 2021
100 50
41
68 enLIGHTenment magazine | december 2018
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