Royal Philips Electronics - Philips - United States · PDF fileRoyal Philips Electronics...
Transcript of Royal Philips Electronics - Philips - United States · PDF fileRoyal Philips Electronics...
Royal Philips Electronics
Patrick Kung, Member Executive Committee Royal Philips Electronics
and CEO Philips Greater China
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Morgan Stanley China Industrials Summit, Beijing, PR China
June 19th, 2012
A strong diversified industrial group leading
in health and well-being
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Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales of EUR 22.6 billion in 2011
Portfolio now 65% business-to-business
Growth geographies
34% of sales generated in growth geographies
Globally recognized brand (world top 50)
Our brand value doubled to $8.7bn since 2004
122,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 7% of sales in 2011
53,000 patent rights – 39,000 trademark rights –
70,000 design rights
Our portfolio is focused on growing markets
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Demand for
affordable healthcare
Need for energy
efficient solutions
Desire for increased
personal well-being
% of Sales: 40% 35% 25%
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Long Philips presence in China
Philips Healthcare
Philips healthcare products was
used in the Forbidden City in the
Qing dynasty
Philips Lighting
Philips Lighting products entered
China in the 1920’s
Philips Consumer Lifestyle
The oldest Philips radio is found in
the Summer Palace in Lhasa
(1940’s)
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• Strong brand equity in China
• Consistently ranked top 3 of consumer brand
equity list during 2009-20111
• 2011 China Top 10 Consumer Brands2
• Extensive presence across China
• Operates in more than 500 cities
• With 26 legal entities
• Provides employment in excess of 18,500
• Strong local-for-local and local-for-global R&D
competence
• With over 2,100 research staff
• For 5 consecutive years, Philips Research
selected as one of the “Best R&D centers” in
China
• Importance of Philips China
• China is the 2nd largest market of Philips globally
Philips is a leading multinational in China
Source: 1.HeartBeat Survey 2.Superbrands
Accelerate! to unlock our full potential
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Changing the way we work at Philips
A new growth and performance culture to become a more
agile and market oriented growth company
Strong customer centricity and entrepreneurship in our
markets supported by granular business growth plans in
China
Locally relevant Innovation with higher speed and excellence
to outpace competition through effective end2end customer
value chains
Simplified operating model empowering growth, acceleration
and reducing local overhead costs
Clear strategies and investment in talent , market
development and local innovation capability which are
resourced to win
Culture
Customer Centricity
End2end
Operating model
Resource to win
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Key milestones of Philips in China
• 1985 Beijing Philips Co. Ltd. established (first Philips joint venture in China)
• 1996 Philips China headquarters relocated from Hong Kong to Shanghai
• 1999 Philips (China) Investment Co., Ltd. established
• 2000 Philips Research East Asia established
• 2008 Acquired Goldway, a leading medical device company, the first ever local acquisition by Philips in China
• 2009 Announced the establishment of an Imaging System Industrial Campus in Suzhou, Jiangsu
• 2010 Acquired Apex, a leading medical device company, and NCW, a leading professional lighting solution company, in China
• 2011 Announced our strategic plan to make China another Global Home. Global headquarters of the Business Group Domestic Appliances relocated to Shanghai. Acquired Povos, a leading kitchen appliance company
• 2011 Announced to set up Philips China Second Headquarters and to build a LED Professional Lighting Solution Industrial Campus in Chengdu, Sichuan
Philips Healthcare in China
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• We are No. 1 in
• Interventional Cardiology
• Premium CT
• Oncology big bore CT
• Digital Radiography
• Premium cardiac / vascular interventional X-ray
• Oncology simulation and planning system
• Cardiac ultrasound
• Resuscitation Defibrillator
• Sleep & Respiratory
• We provide excellent customer services, with
industry recognitions, including Golden Service
Award by China Hospital CEO Summit 2010 and
Best Service Award for Ultrasound, Imaging
Systems and Patient Monitoring China Biomed
Engineering Association.
• We have extensive market reach in China staffed
with hundreds of clinical specialists
…with strong industrial and innovation footprint
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Acquisition of Goldway and Apex
Philips acquired Goldway (China's leading patient monitoring
company) in 2008, and Apex (a Chinese ultrasound transducers
manufacturer) in 2010, aimed at providing high quality value-
segment healthcare products to meet the growing demand in
China and other emerging markets
New imaging industrial campus in Suzhou
In 2009, Philips announced to invest US$54 million to establish a
new industrial campus for imaging system in Suzhou. It further
strengthens Philips’ innovation capabilities to serve both China
and global market.
Philips Healthcare China Academy
In 2010, Philips Healthcare China Academy was put into
operation. With state-of-the-art facilities, the Academy not only
provides technical and application training for Philips service
engineers, but also acts as an experience center for local
customers. We plan to build a second one in West China.
Philips Consumer Lifestyle in China
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Leader in 14 categories* Broad product portfolio
Personal Care
Male
Grooming
Health & Wellness
Mother &
Child Care
Coffee
Garment Care Air Floor Care Kitchen
Appliances
Headphone Home AV Personal AV Home
Communication
Coffee-
maker
Shaver Hair Care
Dry Floor
Care
Garment
Iron
Home
Cinema
Sound
Coffee
Maker (DF)
Female
Depilation
Air Cleaner
Juicer Garment
Steamer
* Source: GfK, ZYK, MAT April 2012
Indexed A&P investment
2010
2011
2012E
100
126
150
Number of retail counters in China
2010
2011
2012E
7,500
9,000
10,000
Market reach
Lifestyle Entertainment
Domestic Appliances
Beauty Oral Healthcare
…with strong local business creation capabilities
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Male Grooming: continue our strong #1 position,
with expansion into middle class and lower tier markets
Kitchen Appliances: leverage Povos expertise in Chinese Cooking,
with complimentary distribution networks
Philips Kitchen Appliances
counter at e-chain
New Philips Chinese
Cooking range
2012 Best KA Range
Award: RC, IC & EPC Hers Magazine
Povos continues promotion
at lower tier market
SensoTouch Shaver
for premium market
Tiger Shaver for
entry level market Local activation with
celebrity endorsement
Extensive
distribution network
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Philips Lighting in China
Local innovation and business creation capabilities
7 Business Units
4 R&D Centers
1,000+ R&D engineers
13 Manufacturing
sites
11,000 Employees
No. 1 position in China lighting market.
Full range of lighting solutions from light sources, lighting electronics, professional luminaires, consumer luminaires to controls.
As the technology and innovation leader, Philips is driving the transformation towards LED applications.
…with extensive channel coverage
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Strong market access and segment focuses
1,200+ Cities / towns with
distribution
coverage
25,000+ Retail outlets
2,100+ Philips shop-in-
shops
300+ Philips branded
stores
36 Regional sales
offices
Strong coverage of all key lighting segments – urban, road, sports, retail, hospitality, office, industry, entertainment and home.
Go-to-market via specialized channels – Professional, Consumer, OEM and other dedicated channels (e.g. Automotive, Entertainment, etc.)
• Philips is a strong diversified industrial
group leading in Health and Wellbeing
• Accelerate! will unlock full potential
• Philips has over years built a solid
foundation in China, with strengths in
brand equity, in industrial capabilities, and
in market reach
• Philips holds strong market leadership in
China across three sectors, aided by
continuous investment in local innovation
and business creation capabilities, in
geographic expansion and in local talent
development
Key Takeaways
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