Goodbye to incandescents

Compact fluorescent [lightbulbs] emit the same light as classic incandescents but use 75% or 80% less electricity...

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.

...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."