Royal Philips Electronics NV of the Netherlands explained issues including the purpose of the reorganization it implemented in its home electronics business in January 2008 at a press presentation held in prior to the 2008 International CES.
The reorganization was based on the company's belief that it will become more important to respond to consumers' needs rather than pursuing the product's individual capability itself, Philips said.
Specifically, the company established a business department named "Philips Consumer Lifestyle" integrating "Philips Consumer Electronics," which was engaged in AV equipment business, and "Philips Domestic Appliances & Personal Care," which was handling white home appliances.
"I think the electronics industry is lacking consideration from the standpoint of consumers, putting too much emphasis on technology," said Andrea Ragnetti, executive vice president of Philips and Chief Executive Officer of Philips Consumer Lifestyle.
Philips also revealed a policy to stress its attitude of placing priority on product design along with the reorganization. According to the company's research, women generally decide whether to purchase items in respect to 41% of consumer electronics.
"Our research showed that a staggering 98% of all women tend to give weight to the product's style," Ragnetti said.
In accordance with this policy, Philips also announced a group of products named "design collection" it developed in compliance with its concept of giving weight to design (press release). The group includes the "7000 FlatTV" series consisting of 19- to 52-inch flat TVs at US$1,699 to 2,799 targeting the US market, for example.
Philips developed this series due to the popularity of the "Aurea" flat TV series it began to market in Europe six months ago, the company said.
Representing Philips' focus on design, the 7000 FlatTV series is geared with the capability to spread sound forward using speakers and a subwoofer located behind the screen panel.
Other design-conscious Philips products announced this time included the US$349 "BDP7200" Blu-ray Disc player compatible with "Bonus View (Profile 1.1)." The market release of the BDP7200 is slated for April 2008.