Philips 2007 Annual Report Download - page 65

Philips Annual Report 2007 71
We have a strong global presence with manufacturing sites
in nine countries and sales organizations in more than 60.
Our Centers of Competence, located in four different
countries, play an important role in the development of
our products. In total, DAP employs nearly 10,000 people.
DAP complies with all relevant regulatory requirements,
most notably the EU WEEE (Waste from Electrical and
Electronic Equipment) Directive and the RoHS (Restriction
of Hazardous Substances) Directive.
With regard to sourcing, please refer to the business
description of Philips Supply Management that begins
on page 96 of this Annual Report.
Progress against objectives
The Annual Report 2006 set out a number of key targets
for DAP in 2007. The advances made in addressing these
are outlined below.
Increase customer focus: category management,
international key account management and
channel strategy
While upgrading its key account management teams
and implementing innovative customer intimacy programs,
DAP signicantly intensied its focus on global customers.
We deepened our strategic alignment with international
key accounts by holding strategy review meetings designed
to involve key retail partners in our product creation
process with the aim of gaining direct feedback. This new
approach towards our retailers, based on trust and open
communication, helped to accelerate protable growth
while providing better value to both our retailers and
consumers. We are now executing common 3-year global
business plans with our largest international key accounts
across all product categories and countries. In 2007, DAP
accelerated growth with key accounts via the successful
introduction of ground-breaking products such as the
Arcitec shaver.
Philips Domestic Appliances and Personal Care (DAP)
empowers consumers with a wide range of technologically
advanced yet easy-to-use products that enhance their sense
of well-being and appearance, as well as helping them
to prepare food and beverages and take care of their
homes and garments.
We are engaged in the development, manufacturing
and marketing of innovative propositions through our
three businesses:
Shaving & Beauty – electric shavers, female depilation •
appliances, haircare and male grooming products
Domestic Appliances – kitchen appliances, oor •
care, garment care, water and air puriers and
beverage appliances
Health & Wellness – oral health care and mother •
and child care.
We also partner with leading companies from other elds,
like Sara Lee/Douwe Egberts and Nivea Beiersdorf, in order
to deliver exciting appliance/consumable combinations.
With our extensive product portfolio, we are able
to service traditional and emerging distribution channels,
e.g. general retailers, electronic retailers, mass merchants,
retailer specialists, online retailers, distributors/wholesalers.
The domestic appliances and personal care retail landscape
continues to evolve, with major emerging markets such
as Brazil, Russia, China and India maintaining their strong
growth, and retailers driving their expansion, both into
new geographies, as well as into the online sector.
DAP has a host of top 3 positions across its portfolio
and across key markets in Europe, North America and
Asia.
For example, the global No. 1 position in male dry
shaving,
as well as top 3 positions for Garment Care in
Europe, Female Depilation and Oral Healthcare in Asia
Pacic, and Kitchen Appliances and Floorcare in Europe.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements
28%
comparable sales
growth in emerging
markets for DAP
“ The domestic appliances and personal care retail
landscape continues to evolve, with major emerging
markets such as Brazil, Russia, China and India
maintaining their strong growth.”