As Chris Hart (VP of Engineering) and I examined the LED lighting products of the 2,170 exhibitors at Lightfair—one of the largest lighting shows worldwide—one thing jumped out at us: not a lot of innovation. The large majority seemed uninterested in differentiating themselves through design, performance, and quality.

Why is this?

Light bulbs are commodity products, in that they are in high demand, interchangeable with another product of the same type, with pricing heavily subject to supply and demand. There are approximately three thousand LED companies in China (either manufacturing light bulbs or components) looking to make money through selling this commodity.

Because of the general focus on low price, LED light bulbs are quickly becoming “me too” products, where many vendors are avoiding meaningful innovation.  The easiest and least expensive way for companies to try to distinguish themselves is through cost.

Research and design is incredibly expensive, so in order to manufacture a superior product, a company would have to raise the price of the product.  With thousands of companies selling LEDs, it’s difficult to obtain a market share when uncompetitive on price. And consumers want lower prices.

What does this lack of innovation mean for the industry? As companies try to drive down prices to satisfy consumer demand, they’ll likely be a huge consolidation in suppliers. This means many LED companies will merge or leave the business. Consumers should be aware of this when they consider the  manufacturer’s warranty as part of their purchase decision.

While we are disappointed that not enough attention is being paid to design and product performance, it does make those manufactures that are making that their focus stand out. This is especially important to us at Leapfrog Lighting, since we are constantly looking to add top quality LED lighting products to our line. In fact in our search for the next product to add to our catalog, we’ve recently examined over two thousand products (some on paper and many through testing in our own lab) to find these high performing bulbs. We’re not here to offer our customers a “me too” product—we’re here to provide you with the very best.

Chris Hart and Stephen Naor at Lightfair (Oct 2012)

How do you weigh price vs. quality? Do you think it’s a good thing that so many companies are putting their efforts into driving down prices at the expense of innovation?