Aurora Lighting Chief Aims to Build Company Into Global Brand

Low staff turnover is one reason behind the maker's success

Having installed transformers in 80% of the lights at the Heathrow Airport in London and as a lighting contract supplier for the 2012 Olympic Games in London, the Aurora Lighting Group is reportedly the leading wholesaler of commercial lighting in Britain, quite a feat after setting up in 1999 in Hertfordshire.

The company has doubled global sales almost every three years over the past decade, to an estimated US$133 million in 2009, as well as setting up in the past 10 years operations worldwide, with manufacturing and product research and development facilities in China and Taiwan, which turn out most of the company's some 5,000 products.

In an interview with CENS during the Hong Kong International Lighting Fair (Autumn Edition) 2010, chief executive Andrew Johnson talked about the company's enviable performance and goals for the next decade.

Interview Excerpts

Q: What's the success story behind Aurora's lead in the British wholesale commercial lighting market?

A: I think Aurora has got a special product offering firstly. We really take into consideration electrical contractors to make sure that our products are easy to install, plus we also have a superior product range. Secondly, Aurora makes power-controlled lamps and luminaires; so, we have the opportunity to control the quality more than other companies. On top of that, we focus aggressively on marketing with extensive programs. And we have quality people. Aurora has been in the business for 11 years and we've got consistency in our staff, without senior people having left in 11 years. And we're very passionate about the business and enjoy the company. We have very hard-working people here.

Q: The corporate culture must make a difference?

A: I think Aurora, for a small company, has very good human resource management. There is a lot of energy at Aurora and people look forward to developing careers. Many people here have worked together for a long time. We have 30 or 40 people who have worked together for 15 years. There is good bonding in this company and the culture is one of trying to move everybody forward in life and career.

Q: So you think human resource is critical in an organization?

A: Yes. I think a company is only as good as its people. Even with the best products, the best marketing and the best anything else—all amounts to nothing without good people. Here in Asia as well we have low staff turnover. We have very good relationship between our people in Europe and Asia because we've worked together for a long time.

Q: Can you talk about the “superior product range?”

A: We have five and a half thousand products in the range. Basically, we develop products by choosing target markets first. And ours are bars, clubs, restaurants, hotels, offices and residential. Aurora's policy is to have the most comprehensive range for both indoor and outdoor target markets.

I think what is important now for Aurora's policy on product side is to focus on energy-saving solutions since we are a new entrant into the lighting business. It is expensive to change traditional lighting in hotels and offices to LED light sources. So, people want to work with companies that can provide complete solutions, can fix problems and understand thermal management, dimming, color rendering, and lifetime of lights because they want to invest wisely.

So, we are narrowing down our product range, whether for indoor or outdoor applications, to energy-saving products. We're also strong in fire-rated lighting and now we're the main manufacturer in Asia of fire-rated products. It's been a big category for us and will continue to be so. We've just launched here the first insulation-contact-rated downlight for the European market.

Q: What is your marketing plan?

A: I think many in the lighting business now face a hard choice with big semiconductor companies coming into the lighting industry. The reality is that you have to get bigger or get out; while you really need to have volume to compete with major brands. For us, our marketing program now is expanding business internationally and we have set up operations in all continents, including Africa, the Middle East, and the USA, which enables us to serve individual markets. Obviously, we have very strong operations in England and Ireland. Also we've set up operations in France, Switzerland, Spain, Hungry and Germany. Plus we sell products in Taiwan and China.

Q: I see the Taiwanese chip packager VisEra Technology using a corner of your booth to exhibit its technology. I hear they're your strategic partner. Why would they work with your company?

A: A lot of big semiconductor companies are entering into this business. Obviously they have chips and products but not necessarily the proper lighting experience. So, for many of them Aurora is a good partner because we have detailed understanding of installation issues and product applications. Coupled with our international distribution channels, it seems that people would like to collaborate with us because we can provide information to help make their products commercially viable.

Q: Besides VisEra, which semiconductor companies is your company working with?

A: Quite a lot but I can not reveal names. Yes, we are collaborating with major chip companies.

Q: You have bus showrooms in Britain as a marketing tool. How did your company come up with that cool idea?

A: We know that sometimes it can be difficult to get customers to come to our facilities and showrooms because of the distance, traffic and thinking involved. So, we came up with the concept of taking showrooms to customers and it's very successful. We arrange about 300 different bus tours per year, obviously telling our customers we are coming. Then our customers and the wholesalers have the opportunity to invite contractors to come and see the products. We have 275 working products on display in the buses and this is a very successful marketing concept for us.

Q: Does Aurora compete on price?

A: No. Aurora services the professional market. So, we're not trying to be the cheapest people in the market and we're not as aggressive pricewise as other people are. We want to provide complete packages—for example, the market and technical support. Obviously, we want to make sure they get our latest products and reliable supply. Aurora is unique for our infrastructures in Asia enable us to ensure consistency in our product range.

Q: Your company celebrated its 10th anniversary in 2009 at the Hong Kong fair. What's your goal for the next decade?

A: I think Aurora has the potential to grow into an international brand name. For this decade we aim to continue to develop inspirational lighting solutions for people. The plan now is to start to expand this brand globally to compete with Philips, Osram and other big-brand people.

Q: What's the company's growth target for this year?

A: Aurora's business has been doubling every three years to this year. We generally try to grow 30% per year and this year we're looking forward to something between 30% and 50% growth.

Q: Would you like to sum up Aurora's success in the past 10 years in a phrase or something?

A: Of course. We're passionate about lighting and we're not interested nor involved in other business.