Philips 2008 Annual Report Download - page 80

Consumer Lifestyle employs approximately 17,000
people worldwide – down by some 6,000 compared
with 2007 following the integration of the former
CE and DAP businesses and subsequent rebalancing
of the portfolio and industrial footprint. Our global
sales and service organization embraces more than 50
mature and emerging markets. In addition, we operate
manufacturing and business creation organizations in
the Netherlands, France, Belgium, Austria, Hungary,
Singapore, Argentina, Brazil and China.
Consumer Lifestyle strives for full compliance with
relevant regulatory requirements, including the
European Union’s WEEE (Waste from Electrical
and Electronic Equipment) directive.
With regard to sourcing, please refer to the section
Supply management on page 54 of this Annual Report.
Transformation program
Throughout 2008, Consumer Lifestyle has undergone
a process of integration and optimization. This has
involved ‘right-sizing’ the two complementary business
operations from the start of the year into one that is
focused on profitability and business stability with
synergies and lower fixed costs. Within this framework,
the sector has applied itself to making focused choices
on the categories and markets in which it operates in
order to create a stronger and more profitable foundation
for growth.
The sector has also placed particular emphasis on
ensuring the right product/market combinations exist
across its portfolio, making bold choices in many markets
regarding which categories to pursue and grow.
For example, Television has shifted from a business
based on scale to one driven by differentiation,
especially in its channel/market mix. Traditional
world-class competences in areas like picture quality
and technical performance have been maintained,
while additional focus has been placed on
differentiated design and experiences.
Across many of our businesses, we tightened our
focus in Europe and North America, while expanding
our presence in emerging markets like Brazil, India,
China and Russia. Within the North American market,
Philips entered into a five-year minimum brand licensing
agreement with Funai Electric Company of Japan, under
which Funai will assume responsibility for all Philips-
branded consumer television activities in the United
States and Canada. Toward the end of the year this
agreement was extended, adding audio-video categories
in the US and TV and audio-video categories in Mexico.
Consumer Lifestyle took a similar approach to its
PC monitors and digital signage business, IT Displays,
entering into a brand licensing agreement with TPV
Technology Ltd for the global distribution and marketing
of products in these categories. This transaction is
expected to be completed in the first quarter of 2009.
Director’s cut
During IFA 2008, Philips introduced the compact
CinemaOne home theater system, the world’s first
cinema-proportioned LCD television. With its 56”
screen shaped in the 21:9 aspect ratio, Cinema
21:9 lets you enjoy movies as you would in the
cinema and just as the director intended. Ambilight
technology combines with the on-screen action to
completely immerse you in the movie and deliver
an uncompromised and absorbing cinematic viewing
experience never before available in the home.
Philips Annual Report 200880
42
Our group performance
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are