Stilnovo Parent Company Eyes Acquisitions
The holding company that owns Stilnovo, the Italian lighting company, is eyeing expansion and preparing for growth in key markets.
MILAN — In 1957, Stilnovo's Sputnik pendant lamp was created, celebrating an age of space exploration. Fashioned with rays that expand in all directions, it was a testament to an era of growth fueled by the design vision of famed designers and architects like the Castiglioni brothers Achille, Livio and Pier Giacomo; Ettore Sottsass, and many more.
Fast forward to 2023, its parent company Linea Light Group said that despite the slowdown affecting consumer spending in the design sector, it is on the edge of another phase of growth, eyeing more acquisitions and expansion.
“By 2022, we steadily reached a turnover of 100 million euros. This allows us to remain on the market with a vision open to possible acquisitions that can help us in our expansion projects,” said group chief executive officer Gianni Bolzan.
Stilnovo, which the group acquired in 2019, is still in a launch phase. “We can say that the growth recorded in 2021 and 2022 allowed it to reach around 5 million in sales. In all honesty, for Stilnovo 2023 we see continuous and encouraging growth abroad, much faster than in the Italian market,” Bolzan added.
Once its core market, Italy has been lagging. “As Italians we consider this aspect worrying, but up to a certain point. However, we are projected toward an international market.…We reiterate that Italy remains fundamental for us, also in terms of image. For this reason, we have invested in a new showroom that we will open in 2024 in Milan, where the brand Stilnovo was born in 1946.”
Geographically and in order, Linea Light Group's top markets are the Far East,
South Korea and Singapore, as well as Europe (particularly France, Germany and the Scandinavian countries). About 20 percent of Linea Light Group's turnover comes from the U.S.
“As far as Stilnovo is concerned, we have significantly strengthened our catalogue of certified products for the U.S. market and we aim to expand our market share in the U.S. in the coming years,” Bolzan said.
Reboots are a big part of its appeal. Earlier this fall, the company unveiled Luna, which was originally envisaged as a table lamp in 1984.
Developed around a small double-pin halogen source, it projected the light onto a round screen, which in turn diffused it onto the work surface in a comfortable manner. Today, almost 40 years later, Stilnovo has made it available in both a new pendant and floor versions.
Japanese designer Shigeaki Asahara said he sought to make the model as thin and as light as possible, emitting more light than his original concept. “Today with the use of LEDs this is possible, maintaining the minimal proportions of the past and the same soft emission. Finally now, with new technologies, Luna can see the light.”
Stilnovo brand manager Marco Chiarolanza said the 2023-24 collection has been seminal for the brand.
Along with the Luna it includes new futuristic models like the Demì Moon and Inbilico by Italian designers Mirco Crosatto and Brian Sironi, respectively. These are among the designs in which the company has invested significant resources.
“They have been created by brilliant designers who have embraced the new Stilnovo,” Chiarolanza said, noting that even the Halley, the articulated lamp designed by the late German Richard Sapper in 2005, has been re-envisaged with more than 18 months of dedication to improve technological features, enhanced with Sapper's heirs. “It's practically a new lamp. It is therefore not the largest launch, but in terms of resources used, innovation and expectations, it is certainly a collection of crucial importance for Stilnovo.”
Driven by an uptick in the lighting sector, 70 percent of Linea Light Group's turnover is generated abroad, and Stilnovo's image is a catalyst for more growth. E-commerce for Linea Light Group is also buzzing thanks to Stilnovo and its famed roster of models and forwardthinking designers.
Across the board, an appetite for high end lighting is fueling this trend. Earlier this year, Claudia D'Arpizio, a
Bain & Co. partner and Global Consumer Products and Retail lead, said sales generated from digital channels are expected to represent 10 percent of the market by 2027, outperforming at almost “double speed,” versus all other channels. In key markets like the U.S., for example, premium brands dominate, though awareness regarding high-end brands represents both a hurdle and growth potential.
E-commerce growth in North America depends on how effective Italian brands are in their storytelling and engagement efforts. In this vein, lead-to-store offers that allow consumers the freedom to explore independently and initiate a first draft of design before being re-sent to the selected dealer or physical store to conclude the purchase, are prevalent, D'Arpizio explained. In terms of storytelling, the potential for brands like Stilnovo, a historic label with superior innovation capabilities, remains high. In terms of international penetration, lighting is driving the e-commerce boom, as it is far easier to pack and ship than a couch.