Fumagalli's survival strategy
Crossed the barrier of “low-cost Chinese products” with “factory automation”
companies, not a few have closed their business due to the offensive of low-cost products in China.
price as Chinese products” and “the quality of Italian lighting fixtures,” and rather ignited
the quality competition with low-cost Chinese products. What is the secret of Fumagalli
lighting that caught the tail of “low-priced Chinese products”? <Editor's note>
Many of the people who went on to university in the 1970s have some negative thoughts about "family companies." This is because many universities at the time taught “family
businesses” as “bad companies,” where the families dominated the company and employees at will. Instead, they taught that a corporation that made the company public on the
stock market was a "good company."
However, this kind of perception of “family companies” and “stock companies” is actually a prejudice with no reliable basis. This is because there are many “family businesses” like
Glenberry of Sweden that are praised and respected by consumers in the world. On the other hand, there are a number of “stock companies” that are blamed for “gap quality”.
Although it still doesn't have a global reputation like Sweden's Glenberry, the Italian
Fumagalli family and their family business, Fumagalli Srl, are among the most anticipated
lighting companies in the Italian lighting industry.
The reason Fumagalli Lighting emerged as “the hope of the Italian lighting industry” is
because it finally found a way to break the offensive of “Chinese low-cost products,” the
biggest concern in the Italian lighting industry. In fact, the method that Fumagalli Lighting found was very simple, by lowering the price of their company's products to the level of "Chinese products."
◆ Increased competitiveness by combining “Italian quality” and “Chinese prices”
Of course, from the time when Chinese lighting companies appeared in the global lighting market and devastated the world lighting market with'low-priced products', as a
countermeasure, “If we lower prices as much as Chinese-made products, we can prevent
Chinese lighting companies from attacking low prices.
Nevertheless, the reason why this “concept” stayed at the level of an idea simply was
because the “way” to put the idea into practice was not appropriate.
Of course, relocating the factory to China can solve the problem of “Chinese price”.
However, the products produced in that way are mere 'made-in products'. Even if you die
and break a hundred times, you cannot become a “Made in Germany” or “Made in Italy”
product. So, it is natural that the price of a product made in China is at the level of a
product made in China.
Therefore, for example, it is concluded that in order for an Italian lighting company to
make a “product at a Chinese price,” it must produce the product locally, not in China. “By the way, how do we make lighting products at “Chinese prices” in Germany, Italy and
Korea, where wages are many times higher than China?” It was difficult to solve this
Meanwhile, Italian lighting companies were forced to close their business one by one due to Chinese products. Many of the surviving companies were taken over by Chinese
lighting companies, and there are many cases of Italian companies only in appearance.
companies by selling “high-quality Italian-made lighting fixtures” in the global lighting
market at “Chinese lighting product prices” or lower prices.
In fact, overseas baers who visited the booth of Fumagalli lighting that participated in the '2018 Guangzhou International Lighting Exhibition' held in June of this year and officials
from local lighting companies in China saw the price that Puma Gali lighting put on each product and said, “This is really Is it true?” he was embarrassed. This is because the price attached to the underside of the FumaGalli Lighting product was really just the level of the price made in China.
In this regard, the officials (family) of FumaGalli Lighting said, "How is such a price
possible?" However, when the reporter repeated the question several times with a serious face, he replied with just one word, "Factory automation."
Starting with the answer of “factory automation,” a lot of questions and answers were f
ollowed between reporters and Puma Gali lighting officials, and eventually the secret of
Fumagalli's “the same price as Chinese products” emerged.
◆ Computing production facilities and automation lines while building new factories
company named "La Bottega dei Maestri Forgiatori" in Varese, northern Italy.
At the time of its inception, FumaGalli Lighting was a professional company that produced monotonous indoor lighting fixtures by artistic handwork, and was a family company. After five years of business, the company hired some employees and began to enter foreign
markets, especially the Japanese market.
By 1984, pursuing the intuition of the founder Fumagalli, Fumagalli Lighting switched the
company towards creating innovative outdoor lighting systems. And it started producing
galvanized steel tubes (street lamps) covered with resin materials.
In 1999, the Fumagalli family converted a private company into a limited company and
continues to manufacture "composite materials" outdoor lighting fixtures. And by
introducing computerized production facilities, the production has more than doubled.
In addition, Fumagalli Lighting has become a world leader in the field of outdoor lighting manufacturing made of resin by achieving “factory automation” by recently establishing a new factory in the position of a new company.
Through this process, FumaGalli Lighting produces its products using an automated
facility. Although not a small amount of money was invested in factory automation, the
production volume increased significantly due to productivity improvement instead.
In addition, the minimization of the production manpower was able to overcome the obstacles of high wages and high costs that had been a problem.
In a situation where other Italian lighting companies are shutting down due to “low-priced Chinese products,” they have turned into “scary companies” that threaten Chinese lighting companies with “Chinese price” and “Italian product quality”.
◆ The trend of “country of origin” also helps Fumagalli lighting
consumers are also on the side of Puma Gali Lighting. In the global lighting market these days, even for the same lighting products, the trend of asking "Where is the origin?" is
This trend emerged from consumers' perception of "No matter how luxury it is, can a
product made in China be called a luxury product just like a product made in France, Italy, Switzerland?", and the question of "Where is the production place?" It can be said that
this is a result of reflecting the behavior of consumers.
In other words, it means that the time has come for consumers to say, "If it is a luxury
product made in China, it is not a luxury product."
In this era, even if it is a luxury product, it cannot be treated as a luxury product unless it
is proved that it was made in “home” rather than in China. Moreover, consumers
nowadays ask producers, "Is all the parts used to make the product made in the home?" It is said that only products produced using the parts made in the home are genuine luxury goods.
Reflecting this trend, Switzerland has legally prohibited watches that do not contain at
least 80% of the parts produced directly in Switzerland from being marked as “Made in
In view of this global trend, it would be good to say that'factory automation', which can
produce directly in Italy while lowering the price to the level made in China, is the very
'production method' that this era demands and consumers want.
The 'World Lighting News' emphasized that the factory automation of Fumagalli Lighting
from an early age emphasized, "The way to prevent the offensive of low-cost products
made in China is to make products with the same price as Chinese products and high
quality of products made in one's own country." It is also in the same direction as the
The only difference is that Lighting companies from all over the world did not go in this
direction, while Lighting Fumagalli Lighting went in that direction. The problem wasn't
thoughts and ideas, but action.
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