Reduce / Reuse / Recycle

August 26, 2002


Matsushita Sells Lighting Services

Keywords: Eco-business / Social Venture Manufacturing industry Policy / Systems Reduce / Reuse / Recycle 

Matsushita Electric Industrial Co., Ltd. in Japan started a new business called "Akari Anshin Service" (lighting service) to provide not "lights" but "lighting" to factories and office buildings in April 2002,

Customers do not buy florescent lights but pay a fixed monthly charge in return for the lighting service. The ownership of the florescent lights remains with Matsushita, which collects used ones for recycling.

Customers can level the initial cost of purchasing florescent lights and expect a 15 to 20 percent cost reduction since they can save on the cost for disposal of the lights. Furthermore, customers no longer have to worry about legal restrictions concerning the florescent lights.

Believing that "the hardware oriented business model is a legacy of 20 century," Matsushita markets "Akari Anshin Service" as part of an advanced business model. The market for florescent lights is highly competitive over price because of difficulty in differentiating the performance between products. Providing the function of light as a service, rather than a product, enables Matsushita to "secure" their customers and to gain additional profits from waste treatment.

Posted: 2002/08/26 11:59:38 AM
Japanese version