Mateusz Madejski, journalist of Business Insider Polska: Your company produces approx. 4,000. lamps per day. Is it a lot or a little?
Tomasz Krywult, owner of TK Lighting: This is a large scale compared to the Polish reality, although when you compare it with the powers from China, you can see that we operate on completely different principles. Factories there can produce millions of pieces a month. I remember my visit to Shenzhen, to a factory producing household appliances. When I asked what brands were created there, the answer was: all of them. This shows the difference in scale and philosophy of operation.
“It's not easy”
Is it then possible to compete with Chinese manufacturers at all?
It's not easy, but it's not impossible either. Chinese companies operate in a completely different legal and cost environment. They do not bear the same burdens as European companies. They do not pay taxes in Poland, do not have to dispose of waste, and often market products without the required safety certificates. This allows them to offer very low prices. However, we focus on transparency, quality and durability, which requires greater expenditure, but also gives our customers a sense of security.
So where can you look for advantages?
Yes, our strength is flexibility, individual approach and closeness to the client. We produce everything in Poland, in Częstochowa. We cooperate with local suppliers, for example, we order glass from Krosno, lampshades and components from Polish plants. Thanks to this, 90 percent elements of our lamps are Polish production. This is a huge advantage because it gives us full control over quality, timeliness and the ability to respond quickly. When there are large delays in sea transport, for example in Taiwan, companies dependent on Asia may have to wait several months for goods. We operate locally, so we can deliver products within a few days. And our partners appreciate this, especially retail chains and investments that have to meet deadlines.
What is the cost difference between a lamp from Poland and China?
For comparison, the simplest lamp model, produced in Poland, costs about PLN 15. A similar product can be imported from China for PLN 4. The difference is huge. But this is only an apparent saving, because the product often has no certificates, has not passed safety tests and has no warranty. After a few months, defects or the risk of failure become a real problem. That's why we compete not on price, but on value, i.e. durability, design and quality of workmanship.
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Tailor-made series
Can product personalization be the answer for Polish companies?
Yes, because we are not a mass production factory. Chinese producers do not go below orders for a thousand pieces. We make shorter series, often tailor-made. Recently, we carried out a lighting project for a hotel chain, where each model had to be matched to the interior and atmosphere of the place. This cannot be achieved in an automated, mass production system.
Is automation changing the lighting industry today?
Automation really works when it comes to repetitive production processes. However, the decorative lighting industry is governed by different rules – manual work, precision and craftsmanship are still of great importance here. This is what we rely heavily on, currently employing 105 people. Of course, we see the potential of automation, especially where it improves technical processes, which is why we use it more and more often, e.g. in metal processing or painting.
What is the situation on the labor market today?
In our region, i.e. in Częstochowa and the surrounding area, there are more and more people looking for employment. This is largely the result of problems in the automotive industry, which has been very strong here so far. I admit that this worries me a little, not only from a human point of view, but also because these are often our potential customers. Unfortunately, there have been many layoffs in recent months, and companies from other sectors are not always able to absorb such a large number of employees.
Is rotation also noticeable at TK Lighting?
I can proudly say that we haven't fired a single person in five years. When we implement new automation processes, we do not reduce jobs, we only transfer people to other departments.
How much of your production is intended for export?
About 50 percent Our largest export market is Germany, but we also send products to the USA, Canada, and even South Korea. This was the furthest corner of the world that benefited from TK Lighting products. Nowadays, it cannot be denied that online stores are developing rapidly and are often even ahead of traditional wholesalers. When it comes to online sales, the numbers are growing and we can talk about very serious increases here. Although I admit that some large chains rely on products from China, which is why we simply withdraw from some cooperation. Hypermarkets often look for the so-called first-price product, i.e. the cheapest. However, we are in the mid-price range.
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