The innovative and ground breaking technology developed by Parans allows natural sunlight to be led deep into buildings which means the starting point for strategic analysis needed to focus on partners that were aligned with the company’s sustainable product offering.
Making natural light go further
An initial screening of the market found that most potential partners were located on the West Coast. This cluster, combined with the region’s increased investment in green and sustainable technologies made it a prioritised region to identify a new partner.
Fredrik Johansson, Senior VP of Sales & Marketing explains:
“Being in the natural light industry meant it was important to look into the amount of sun hours in different areas of the US. We had previously done some installations in the San Francisco area, for the University of Arizona, as well as for hospitals on the West Coast, and we also had references from prior partners about which states were in the forefront of green technology. These insights gave us a good place to start.”
While identifying partners is only the beginning of setting up a distribution channel in a new market, it is one of the most challenging aspects - especially when you are on the other side of the world in a completely different time zone. Business Sweden’s team of experts on the ground in the US supported Parans with their partner search and overcome the challenge of screening and prioritising potential partners without a local presence.I don’t think we would have had the staff, expertise or local knowledge to execute this by ourselves. Business Sweden’s local expertise and resource capacity enabled them to reach out to a large number of companies in various categories of partners.
During the process of identifying potential partner candidates, Business Sweden maintained continuous dialogue with Parans and also addressed several key issues during the screening process. These issues included identifying different sales distribution channels, management structure, and the overall service offering of Parans. For the search to be successful, a partner candidate needed market reach, complementary value propositions, a track record in sales of daylighting systems, and management teams that had similar corporate values and ambitions to grow the business.
The importance of utilising local expertise to find a suitable partner was crucial, as explained by Fredrik Johansson:
“I don’t think we would have had the staff, expertise or local knowledge to execute this by ourselves. Business Sweden’s local expertise and resource capacity enabled them to reach out to a large number of companies in various categories of partners. They then narrowed it down to such a high-quality short list which was extremely valuable”.
The future looks bright
The collaboration between Parans and Business Sweden delivered an extensive screening process of potential partners which gave Parans the insights to be able to pursue discussions with one of the identified prioritised partners – who they have now signed a partnership agreement with. The new partner, Lumenomics, is a natural lighting distribution and installation company with a focus on providing integrated daylighting solutions to help companies maximise natural light in designed spaces.
The partnership has presented an opportunity to Parans to accelerate their positioning within the network of distributors before extending their reach into other interesting segments in the US market. Johansson concludes:
“Our goal for 2021 is to get a footprint in place in the US and have four to five installations completed to showcase our solutions in the different sectors we are operating in, such as hospitals, commercial buildings and retail. We are driving a marketing campaign with our partner focusing on new segments where we can further expand”.
About Parans Solar Lighting AB
Parans Solar Lighting AB develops and sells proprietary and patented innovative solar lighting products which capture and lead sunlight into the rooms of buildings where natural sunlight otherwise doesn’t reach.
Through Parans’ products, natural sunlight can be experienced in parts of a building far away from windows. Parans’ products are sustainable and environmentally friendly, and, in turn, lead to increased well-being and productivity for the inhabitants in the building.
Parans has an existing market presence in the Middle East, primarily in the United Arab Emirates and Qatar. In the APAC region, partners represent Parans in Australia, India, Malaysia, Thailand, and Hong Kong. Additionally, Parans Solar Lighting is establishing a sales office in China. In Europe, Parans has representation in Romania, Poland, Turkey and is currently expanding into Germany and France while also searching for partners to cover Spain, Benelux, Morocco and Egypt.