Wednesday, April 16, 2014: The world knows that Philips is planning to exit from the consumer electronics segment globally, to focus on B2B businesses including healthcare and lighting, but things are a bit different when it comes to a market like India. The company has shared that it will continue to focus on consumer electronics segment in the Indian market.
According to an ET report, the company will continue to work in the consumer electronics domain in the country with an extension in the product categories including air purifiers, coffee makers, electronic oral care products. The company also revealed its plans to enter the fast-moving consumer goods (FMCG) with the introduction of baby skincare products.
Krishna Kumar, vice chairman and managing director, Philips India said that the brand will target either the number one or two slots in each of these categories in India. The ET report quoted him saying, “In India, Philips’s consumer business is the largest, contributing 55 per cent to sales as compared to the B2B portfolio, which accounts for 45 per cent of sales. This is in sharp contrast to the global scenario where B2B products contribute 65-70 per cent to sales with the balance coming from consumer products. We want to be a balanced company in India so that we can tide over difficult scenarios when the economy rides different waves.”
It is worth mentioning here that the company has quit the television business. The brand has been licensed to Videocon for the Indian market. Philips had exited the home entertainment business last year. The company has been adversely affected by the shrinkage of consumer electronics business globally but continues to be a market leader in kitchen appliances segment with products including toasters, juicers and electronic personal care products including shavers and epilators.
