LED lamp price reduction will come from integrated and smart designs

LED-based equivalents of 20W and 40W incandescent lamps are available at an affordable price range of $5-$10. However there are no solid-state lighting (SSL) replacements for 60W lamps that are priced comparable to the CFL equivalent. High prices mean that the LED bulb market remains largely untapped by most countries and regions, with the exception of Japan, which significantly outdistanced North America and Europe combined in terms of the number of units sold.
"The price reduction should come as an integrated solution that will include more efficient design, easier manufacturing, and negotiations with sales channels,"said Vladislav Bougrov, the executive vice president of of Optogan Group. A recent interview with Bougrov got me thinking about the most important factors that affect the final pricing of LED bulbs.LED bulb replacements are characterized relative to traditional bulbs as equivalents of certain wattages. This is how traditional lighting sources have always been characterized. LED bulbs provide the benefits of consuming less energy and providing equal amount of lumens, similar color temperature, and high CRI, but the equivalency is not well-defined. Consumers are suddenly forced to learn what light is all about and how it affects the price they pay.
Buying an LED bulb is more like buying a device that will last long time and will save money. Japanese manufacturers offer a great lesson to any market on consumer education: the packaging illustrates the comparison for light distribution and lumen output of traditional lamps versus LED lamps and stores are full of interactive stands that display practical applications and compare LED lamps with other types of lamps. The efforts of the US retailers to educate consumers about LEDs are less impressive.
Manufacturers are offering the equivalent substitute for the traditional lighting sources that would give the same lumen output as well as color quality for the most part. However, Bougrov shared with me Optogan's intention to introduce their new 400- and 600-lm 2700 K lamps to Russian and eastern European markets that would be significantly cheaper than the current market prices. The product selection was defined by their marketing team.The goal in designing an LED bulb is to provide an alternative that would have a similar form factor and lumen output. If, however, consumers are only now beginning to be educated about what new quality light is, why not offer them a variety of options for the lumen/dollars? The unique properties of LEDs allow manufacturers to innovate, keeping the legacy form factor in mind. For example, luminaire manufacturers are promoting LED modules for the purpose of interchangeability -- LED lamps could benefit from this approach as well. The simplification of design would ease the manufacturing process of LED bulbs.