'It is an exciting time for us in India'

Q&A: Egbert Van Acht

Philips Consumer Lifestyle was formed on January 1 this year following the integration of Consumer Electronics and Domestic Appliances & Personal Care divisions.

Egbert Van Acht, chief marketing officer, Philips Consumer Lifestyle, shared some insights with Suvi Dogra at Internationale Funkaustellung (IFA), Berlin.

How does an emerging market like India fit into the scheme of things for Philips?

We wish to leverage our equity in BRIC (Brazil, Russia, India, China) nations and capture expansion opportunities based on consumer lifestyles.

Within BRIC, India is a key market given our strong heritage in the country. Unlike mature markets, India is going strong and we can achieve growth in the range of 15-20 per cent here. Hence India is a very important market where we are willing to invest significantly. It is an exciting time for us in India.

Globally Philips has been talking about providing technology to enhance lifestyles, health and well-being. How will you make this ideology relevant for India?

Philips is developing products with extensive research on consumer insights carried out in India. One such product is the “Intelligent Water-Purifier.” It is now being exported to Brazil, Malaysia and Turkey and will travel to other markets as well.

The “Intelligent Food Processor” has features such as an Intelli-arm — an extra wonder arm and intelli-control with a timer that eliminates the need for supervision. The mixer-grinder was re-developed for the Indian consumer to decrease the sound level.

We will also introduce relevant products from our global portfolio. So there will be lots of exciting new products with specific designs and technologies for India. We will also launch our mother and child care brand, Avent, early next year.

Have the increase in prices of raw materials made things difficult?

Commodity prices are warming up and companies are taking steps to hedge themselves depending on the market. Still we are very positive in India since we are witnessing strong numbers. Besides, the consumer is now value-sensitive more than price-sensitive. So the key to grow will be differentiation.

Philips has joined hands with many players globally to give the right solution to the consumer. Will India also see similar alliances or acquisitions?

We are open to alliances. For example, globally we have joined hands with brands like Swarovski, Nivea and Douwe Egberts, to get the best for our brand. If we can do it on our own, we will, but wherever there is a need to partner with someone for manufacturing or even marketing a product, we will look at it. We are on the lookout for acquisitions There are some things on the cards which we can’t disclose as of now.

Globally, most manufacturers are repositioning themselves as companies for the young. Is Philips also looking to achieve the same?

We don’t want to be young but that doesn’t mean we want to be a brand for the oldies. Our target audience is 30-50 year olds. Moreover, our audience is architects for lighting, doctors for health care and consumers with higher disposable incomes.

This consumer profile is similar the worldover. We want to bring sense and simplicity along with health and well-being for the consumer. Our range like Go Gear caters to the young. We don’t want to stand as the middle of the road brand but have a sense and simplicity that provides relevant designs and technology for the consumers.

In India people think us to be Philips electronics and we plan to now shift our focus to health and well-being within the consumer lifestyle space. We will be investing more time and money into understanding the needs of the Indian consumer and bringing in the relevant designs.

(The correspondent’s visit to Berlin was sponsored by Philips)