Swot Analysis Of Lighting

5.3 SWOT Analysis

5.3.1 Strengths

Future Lighting has over 15 years of experience in the lighting industry with seven lighting retail outlets across the territory. The company is one of the largest lighting retailer and distributor in Hong Kong and Macau. Moreover, the company has three intelligent and integrated warehouses in Hong Kong and China, which enable the company to minimize cost and maximize efficieny to supply all products necessary.

With strong financial backing, Future Lighting also has the strong promotion ability. The company spends a lot on advertising and win many awards and recognition in Hong Kong in the recent years. Future Lighting has good brand recognition in Hong Kong that give customers confidence in the company.

5.3.2 Weaknesses

Future Lighting is targeted middle to high-priced market, the products’ price are generally higher than others domestic brands. Moreover, the shipping cost and time will be higher and longer than other domestic stores which are able to ship the products from the mainland directly, these can adversely affect sales and growth opportunities since it might throw out some consumers from the market. In addition, although the product range of Future Lighting is very wide, however, the company do not have core or representative products.

On the other hand, Future Lighting is a new comer in the E-commerce business in China market. It is not easy for a Hong Kong company to compete with already existing stores, since the company does not have any physical store, customer base and brand recognition in China.

5.3.3

Since more and more consumers are willing to purchase lighting products online, E-commerce will become the largest distribution channel for lighting products in coming years. Moreover, E-commerce provides the plenty of advantages, which encourages the company to expand the distribution channel.

In addition, with the continued growth of the economy and the rise of people’s living standard in China, the consumption structure continues to upgrade and the expenditure on the lighting products are increased. Likewise, the rapid development of the property market, especially in the high-class residential communities and villas, can further boost the sale of home lighting products. At the same time, people are now placing more emphasis on the ambience created by lighting in their home and also pay great attention to the quality of the lighting products, therefore, the demand for high-end and high quality lighting products are increasing in China. The opportunities for business are diverse and almost unlimited.

Although the competition in low to middle-end markets is intense, but there is still room in the middle to high-end market. Therefore, it shows a very good opportunity and condition for Future Lighting to develop an E-commerce business in China.

5.3.4