Ilooks, feed the word through the sun. Part 5

You told in recent interview that your strategy will be first  focused on high-spending customer and after, when you grow, to enlarge your market to lower-income clientele, because of the dramatic cost reduction that is forecasted (in the New Energy Outlook  Bloomberg forecasts a decrease by 60% within 2040) how will you have a profitable business with so low prices?

In this point of view, trusting the data from Bloomberg, (data about photovoltaic technically are to be reviewed every 10 years), there was a  strong acceleration  by big countries. They started to strongly investing (we speak about China and US) important financial resources. They did it not only for economic reason, but to start solving the pollution problem. They feel it a lot. Recently we had not only COP21, but also COP22 from Marrakesh signed few days ago. The settlement of the new US president Trump, could change in some way promises made by former president Obama. Strategies will for sure change.

I can tell that Bloomberg’s  outloook is from today to 2040, i speak more about an outlook from today to 2030 or also to 2020. This because next 4 years will be very important.

I can say is that it is true that the price of photovoltaic technology in the last 15 years has reached so good level to be one of the reason to push the countries to invest on it strongly.

We must say that we, as Ilooks Technologies, are continuing with R&D in this direction. We started with a method, we spent 18 months to find it. Now we are lucky to start having customers and working with them. So our idea is: structuring our company, increasing volumes, increasing the number of customers. These actions made to be able to invest always resources on R&D and to find alternative solutions to the present one and mantain, or better, improving, the efficiency. We think that 80% could not be enough. It is not easy to go beyond it, we spent 18 months to reach it but i am sure we will find an improving solution.

Technologies evolve, as a consequence, as happened to photovoltaic that has dropped the costs, we will be able to drop our costs. I don’t exclude to succeed about it. For sure we will do in a point of view of volumes

We must say that struvcturing our business needs time: we deposit a patient request less than 8 months ago. So we can say, not as excuse, that we are so young that we need to structure ourself and to grow.

Told this we will find new solutions, we are already trying to do it. We didn’t stop to the first solution.

We are delivering new tests because we are working on a second generation solution. First generation one was with a technology used on the external, we are now working internally. I mean we are integrating our solution inside the photovoltaic panel production process. We do this to improve the resistance to atmosferic phenomenons. Its sturdiness is as the traditional one.

We are working on a third generation process that are giving incredible results about efficiency (improved a little) and, better, we are dropping the costs.

So, in the point of view of development in the next year, we will follow the trend of cost reduction to improve their profitability. The reason is that we will be able to improve the range of customers and, as a consequence, the volumes reducing costs.

It is always scale economy: if we will succeed to reach the balance the price will drop, request will increase and, so, we can follow the trend.

Moreover for us it is important that the price decreases because it’s an important cost voice on the product . So if the price will decrease, we also drop our prices. We are oriented to reduce the costs but depending on volumes.

We will see. I hope that the Bloomberg’s outlook will be confirmed because the photovoltaic technology run a big deal fast. There are coming new solutions. One of them is the peroschite, it seems to be the new silicon so it is very important. Its cost is low and it seems to have an high efficiency.

At the moment it is only experimental phases and not industrialization. We will see when it will be on the market if it will be really as described. I believe it.

The evolution has always lead to improve and grow but we will see. Saturation will arrive also about it but this is for sure not the moment of saturation.

1.    Is there the risk that your blue ocean become a red one with many competitors?

The risk is always present. When the potential market is so big, he player already present will fight not only with their traditional competitor. The market usually becomes more crowded.

We have on our side a strong attitude to Research and Development. So, if we succeed to mantain the competitive gap assured by the technology, we can say to be less attackable than others.

This is a logic that, in the technology sector not only us follow.

It is known that if you don’t continue to innovate, the technology gap will be reduced and time by time your competitor will overpass you and so you are died.

We think that the market will be crowded by more competitors. I can’t exclude that, in this war, it could be a big fish that will start to make acquisition to mantain its leadership and to gain technology. This to mantain it above the other.

It is also true that the past shows that the best competitor wins. So it is not only about acquisition.

All depends on the research and development. We have a long term point of view. In it we see that we can be bought , so make an industrial exit, by a big player with financial capacity to by ourself. I mean: if we have the technology that he needs, and it notices that our work damage it, if it has the financial capacities and is a big shark, you don’t mind to war with me. You prefer to buy a new market share with that company.

Our point of view is to be bought  from some big company. It’s a business hypotesis that we considered. We don’t exclude trade partnership where we see to be more profitable than other. We can gain market shares and not war with all.

We must see the market trend. These will be the challenges that we will fight with players that will rise on the market. We will wait for them and see how it will be.

Now there is no possibility to fight with player like Tesla on the financial side. This doesn’t mean that we have a product that, in our opinion, based on today data, is better than their one on the technical side.

The exit hypotesis is one of the reason we think to be bought.

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