Innovation, Differentiation Key for Growth

Q: What is OSRAM's position in the Mexican lighting aftermarket?
A: OSRAM is the worldwide leader in automotive lighting. Focusing on the NAFTA region, we have a share above 90 percent in the aftermarket and in Mexico alone we are currently competing to be the market leader.
Q: What aftermarket strategies has the company implemented to differentiate from other players in the industry, such as HELLA and Philips?  
A: The aftermarket is important for OSRAM’s development. Based on our strong presence and growth in the last years, we have intensified our investments mainly at our plants in the US with the SYLVANIA brand and Germany with the OSRAM brand. These investments are linked to our differentiation strategy. Today, we are the only automotive lighting company that continues producing most of its products in the US and Germany rather than China or other Asian countries as our competitors do. We have invested in our manufacturing processes to maintain our competitiveness without sacrificing quality. This year, we are also launching completely new portfolios worldwide for traditional technologies as well as value-added products and LED replacement retrofits.
Q: How important is digitalization in OSRAM's aftermarket strategy?
A: For OSRAM, digitalization is a top priority. As a technology company, we see rapid and major changes in the market, which means we need to be aligned with or even ahead of our clients’ demands. For OSRAM, digitalization is not only online presence or online sales. Our approach is to establish and execute an omni-channel strategy with the objective to provide a single face and a single experience to the customer, whether it is at a brick and mortar store, our website, our catalogue, our social media or through our e-commerce partners. All these pieces should be consistent and complementary. Our goal is to increase sales not only in the e-commerce channel but also in the traditional channel.
Q: Overall, how much growth has the company seen in the Mexican aftermarket?
A: Since 2015, we have experienced strong growth reaching double-digit rates, mainly due to the development of strong portfolios and the opening of key accounts nationwide. For us, 2018 began slowly with high inflation, variable exchange rates and low consumer confidence. However, after the presidential elections, we have seen rapid response from the market and quick development of our market strategies. We believe we will end 2018 with renewed growth.
Q: As a German brand, how do you compete against cheaper but also lower-quality products?
A: OSRAM SYLVANIA offers complete lighting solutions to the aftermarket segment. We are the world's leader in original-equipment automotive lighting. However, being original is just the beginning. We offer our customers a series of value-added products that help increase their safety while driving, with bulbs that provide more light for farther, wider and better views.
Q: How does OSRAM's portfolio differ between the original equipment and the aftermarket segments in terms of quality?
A: Our consumers benefit from our experience as a manufacturer of original equipment and can use these high-quality lamps to replace their current automotive lights. There is no difference between our original equipment and our products offered in the aftermarket. However, we go beyond original equipment by offering stylishly designed automotive lamps that give cars an unmistakably modern look. We offer lamps that provide brighter, whiter light. This is achieved with our OSRAM COOL BLUE lamps and our OSRAM SYLVANIA XTRAVISION WHITE lamps.
Performance in lighting involves quality, luminous intensity and higher output. Our OSRAM automotive performance lamps set new standards for automotive lighting, with lamps that comply with transit regulations and offer greater visibility for increased safety while driving. Safer driving can be achieved with our OSRAM NIGHT BREAKER LASER and our OSRAM SYLVANIA XTRAVISION and SILVERSTAR lamps.
Q: What specific developments has the company worked on for the aftermarket segment?
A: OSRAM has been investing in increasing and improving our product portfolio. Our key challenge is to achieve clear differentiation with traditional Halogen and HID product portfolios that can guide end users in their buying decisions. Simple color coding and catchy icons make the products easily distinguishable. Our green labels indicate our products are designed for durability and environmental friendliness. Meanwhile, blue stands for highest aesthetic standards and black for innovative products such as LED. Finally, our red packaging indicates high-end performance products that meet the highest performance expectations.
OSRAM has developed a full LEDriving portfolio that presents broad and innovative LED products such as headlights, high-quality LED technology for daytime running lights, app-controlled lighting systems for ambient lighting and stylishly designed LED automotive retrofit bulbs for interior and exterior applications. This year we are launching our portfolio for FOG LED and FWD (Forward Lighting) LED with H7, H8, H11, H10, H16 and 9006 bulbs. Our goal is to have a complete portfolio by 2019.
Q: How much penetration has LED technology had in the aftermarket and what are OSRAM’s priorities for this sector?
A: It is difficult to calculate a percentage for LED penetration in the aftermarket because lighting components are not regulated in Mexico. However, we know that the penetration in the original equipment segment worldwide is close to 20 percent of all cars produced. We are ready to participate in this market. However, other manufacturers are “poisoning” this technology with low-quality products sold in the aftermarket. OSRAM ensures that all its LED products comply with global lighting requirements.