The long-standing distribution agreement between Future Lighting Solutions (FLS) and Philips Lumileds, which kept Philips exclusive to FLS and had FLS sell Philips’ products exclusively, has been restructured, enabling Philips to sell its LED products through other partners, and FLS to distribute other suppliers’ SSL products.
Unlike other LED manufacturers, such as Osram Opto Semiconductors and Cree, Philips has always sold exclusively through FLS. The other supplier that sticks out from the crowd is Nichia, the largest manufactuerer of packaged LEDs according to Strategies Unlimited, who only sells directly through their own network and does not use any other distributers. With the restructure, Philips’ LED products will soon be sold through other distributers.
The exclusive distribution agreement was intended to last for another four years, with a new five-year exclusive agreement being signed in 2011. However, the companies have decided to expand into new markets, and have determined the best way to do that is to restructure the exclusive distribution agreement.
"Our restructured agreement allows us to continue our collaboration with a long-term, trusted and successful partner. With the new agreement, we are able to serve the needs of our growing customer base and carry on our widespread expansion into new target markets,” said Pierre-Yves Lesaicherre, CEO Philips Lumileds.
