Will Al Gore Save us from Global Warming? No, Wal-Mart Will.
http://www.fastcompany.com/magazine/108/open_lightbulbs.html
Sitting humbly on shelves in stores everywhere is a product, priced at less than $3, that will change the world. Soon. It is a fairly ordinary item that nonetheless cuts to the heart of a half-dozen of the most profound, most urgent problems we face. Energy consumption. Rising gasoline costs and electric bills. Greenhouse-gas emissions. Dependence on coal and foreign oil. Global warming.
The product is the compact fluorescent lightbulb, a quirky-looking twist of frosted glass. In the energy business, it is called a “CFL,” or an “energy saver.”…
Compact fluorescents emit the same light as classic incandescents but use 75% or 80% less electricity.
What that means is that if every one of 110 million American households bought just one ice-cream-cone bulb, took it home, and screwed it in the place of an ordinary 60-watt bulb, the energy saved would be enough to power a city of 1.5 million people. One bulb swapped out, enough electricity saved to power all the homes in Delaware and Rhode Island. In terms of oil not burned, or greenhouse gases not exhausted into the atmosphere, one bulb is equivalent to taking 1.3 million cars off the roads.
That’s the law of large numbers–a small action, multiplied by 110 million.
The single greatest source of greenhouse gases in the United States is power plants–half our electricity comes from coal plants. One bulb swapped out: enough electricity saved to turn off two entire power plants–or skip building the next two.
Just one swirl per home. The typical U.S. house has between 50 and 100 “sockets” (astonish yourself: Go count the bulbs in your house). So what if we all bought and installed two ice-cream-cone bulbs? Five? Fifteen?
Says David Goldstein, a PhD physicist, MacArthur “genius” fellow, and senior energy scientist with the Natural Resources Defense Council: “This could be just what the world’s been waiting for, for the last 20 years.”…
So far, the impact of compact fluorescents has been trivial, for a simple reason: We haven’t bought them. In our outdated experience, they don’t work well and they cost too much. Last year, U.S. consumers spent about $1 billion to buy about 2 billion lightbulbs–5.5 million every day. Just 5%, 100 million, were compact fluorescents. First introduced on March 28, 1980, swirls remain a niche product, more curiosity than revolution.
But that’s about to change. It will change before our very eyes. A year from now, chances are that you yourself will have installed a swirl or two, and will likely be quite happy with them. In the name of conservation and good corporate citizenship, not to mention economics, one unlikely company is about haul us to the lightbulb aisle, reeducate us, and sell us a swirl: Wal-Mart.
In the next 12 months, starting with a major push this month, Wal-Mart wants to sell every one of its regular customers–100 million in all–one swirl bulb. In the process, Wal-Mart wants to change energy consumption in the United States, and energy consciousness, too. It also aims to change its own reputation, to use swirls to make clear how seriously Wal-Mart takes its new positioning as an environmental activist.
It’s a bold goal, a remarkable declaration of Wal-Mart’s intention to modernize and green up a whole line of business using market oomph. Teaming up with General Electric, which owns about 60% of the residential lightbulb market in the United States, Wal-Mart wants to single-handedly double U.S. sales for CFLs in a year, and it wants demand to surge forward after that.
Diane Lindsley, the hardware buyer who decides what goes in the lightbulb aisles at Wal-Mart, thinks 100 million swirls is perfectly reasonable. “Yes,” she says, “it’s rational, I think.” Before she started buying bulbs for Wal-Mart just three years ago, Lindsley didn’t even know what CFLs were. Now she pauses in a way that suggests the kind of determination Wal-Mart can bring to bear when its buyers decide they are going to sell Americans something. “We have plans in place to where it may not take that long.”
Which presents a daunting challenge: Wal-Mart’s push into swirls won’t just help consumers and the environment; it will shatter a business–its own lightbulb business, and that of every lightbulb manufacturer. Because swirls last so long, every one that’s sold represents the loss of 6 or 8 or 10 incandescent bulb sales. Swirls will remake the lightbulb industry–dominated by familiar names GE, Philips, Sylvania–the way digital-music downloads have remade selling albums on CD, the way digital cameras revolutionized selling film and envelopes of snapshots. CFLs are a classic example of creative destruction.
GE, facing the prospect of mothballing a centurylong franchise in lightbulbs–well, GE is smiling and swallowing hard. “CFLs are taking off,” says Robert Stuart, who heads consumer marketing at GE for lightbulbs. “No one has been as vocal about this recently as Wal-Mart. One hundred million bulbs in a year? It’s an aggressive goal. GE will find a way to make sure they are able to do that.”
GE, too, has launched a green business initiative: ecomagination, an effort to make environmentally sustainable technologies an ever-larger part of GE’s business. Swirls fit well, despite the inevitable cannibalization. “The real issue is, if we don’t do it, someone else will,” says GE’s ecomagination vice president, Lorraine Bolsinger, of Wal-Mart’s effort to push CFLs. “It’s old thinking to imagine that you can hold on to a business model and outsmart the consumer. You can’t.”
Steven Hamburg is an associate professor at Brown University, an expert on energy consumption and global warming who helped Wal-Mart think through the spiral-bulb strategy. “Can they change the game? Think how many games Wal-Mart has changed. There’s no reason they can’t change this game.”