Our business

Vision

Fagerhult is to become a leading global lighting solutions provider.

Mission

To create a globally knitted together, customer insight driven company that leverages the Group's size and competencies while preserving the entrepreneurial culture in our local organizations.

Business model and value creation

A core part of our business is our decentralised organisational model with expertise, decision-making and resources located near customers in the form of nine strong brands firmly established and positioned in their respective home markets. Fagerhult’s value creation model illustrates our process for converting input resources, through the business model, to direct and indirect output value.

Strong brands with local decisionmaking adapt the business

Our ten primary brands have their strongest positions in their respective home markets, which is mainly due to the majority of the lighting market being local. In other words, customer relationships and the ability to adapt our business, products and sales channels to local conditions are key success factors.

This is why our business model is characterised by a strongly decentralised structure that provides the respective companies extensive decision-making power of their own. This structure also provides extensive opportunities to combine local entrepreneurial perspectives with the advantages of economies of scale. Fagerhult has formed a number of general partnerships that allow us to better capture, collect and realise the economies of scale that the Group’s size offers, particularly in terms of purchasing and manufacturing.

The Group management maintains its responsibility for the overriding financial governance and control. Responsibility for acquisitions, which form a key part of Fagerhult’s long-term growth strategy, is also at Group level.

Fagerhults´s three product areas

Our products and solutions are offered through one or more of the three product areas – Indoor, Retail and Outdoor – which reflect the professional lighting market. To a varying extent, our brands are contained within each of these areas. Since the three product areas operate on entirely different prerequisites, a flexible and adaptable sales model is required, with variation in direct and indirect sales depending on how the local market works. Fagerhult’s subsidiaries cover more than 20 countries that through direct and indirect sales in combination with agents, distributors and wholesalers reach some 40 markets worldwide.

Using a customer-centric approach, we consistently follow our strategy to continue growth, both organically and through acquisitions. On the way to achieving our desired position as a leading global provider of lighting solutions, we create and generate a number of direct and indirect values that benefit a number of stakeholders.

Business model