The CEO of Lumega, Rune Larsen, has been on a business trip to South Korea, China, and Singapore. The purpose of the trip was to check the production facilities, expand Lumega's professional network as well as enter into new agreements which can increase Lumega's activities in Asia.
Lumega operates both in Denmark and internationally, and in collaboration with local developers, we have installed saving cost-saving and environmentally friendly lighting solutions in several projects in for example the United Kingdom, Sweden, and Norway. The business trip to Asia is a part of a larger strategy to screen and expand Lumega's activities at attractive international markets. After Rune Larsen came home from the business trip we asked him about the purpose and the results of the trip.
What was the purpose of the business trip to Asia?
“Lumega's products are produced in respectively South Korea and China so partly the purpose was to go and see the conditions at the factories – both in terms of employment conditions and the production of products. It is very important to me that everything is in order at the factories meaning that all the processes taking place are carried out in a morally responsible way. This entails among other things that there is no child labor in the factories. Besides securing the working conditions of the employees, I also visited the factories to make sure, that the quality standards for our products are met, for example, that the factories respect our quality certificates. This is crucial because it is a cornerstone in Lumega to deliver innovative LED products in the highest possible quality. Furthermore, the purpose of the trip was to maintain and broaden my comprehensive network in Asia as well as entering into a new exciting collaboration agreement, which can enhance the sales of Lumega's products in Asia.”
Which possibilities exist in Asia for Lumega?
“There is a huge production potential in Asia for Lumega because Denmark Is no longer a production-heavy country. We could have our production situated in Denmark, however, the problem would be that our products would be more expensive due to the higher cost of producing in Denmark. This would not be desirable since our products primarily are directed to the construction industry and this industry is highly focused on price. Therefore, we have our products produced in Asia, including primarily in South Korea and secondly in China, to secure that we can offer our products at a reasonable price level which is still in a high quality. The quality is secured for example my frequent control visits to the factories as well as thorough certificate-arrangements. Furthermore, we have an employee situated at each factory inspecting the conditions when I am not in Asia myself.”
In relation to the possibilities of enhancing the presence of Lumega in Asia, Rune Larsen adds:
“It is highly possible for Lumega to expand its client-base in Asia. This can be done by focusing on Singapore and Hong Kong since these places work as a sort of gateway to the other Asian countries in terms of trade and business. This, a large part of the purpose of traveling to Asia was to investigate the opportunities to enter into various collaborations with contractors in respectively Singapore and Hong Kong.”
Which new agreements has Lumega entered into as a result of your business trip to Asia?
“I entered into an agreement with a large distributor in Singapore which holds international brands and has had many exclusive projects. The distributor company is local and the benefit of this is that is has a vast local knowledge of the Asian markets. Thus, you can say that the distributor agreement is done to secure that our products achieve the most success possible in the Asian markets. Thus, the products’ success is secured by the distributor's vast local knowledge which enables our products to be handled in exactly the way that suits the Asian markets.”
What is next stop for Lumega?
“I have a business trip to Dubai planned in the fall and this trip is also a part of our strategy to examine the possibilities on international markets. Dubai seems like an interesting potential market for Lumega. I am looking forward to learning more about the possibilities of this market at my business trip later this year.”
If you want to learn more about Rune Larsen’s business trip to Asia, you can watch the episode of his personal video blog, the Entrepreneur Behind the Scenes, below.