Philips 2009 Annual Report Download - page 90

between products and categories. They don’t think in
terms of ‘boxes’, but instead go looking for value and an
enhanced experience.
5.3.2 Lifestyle retail landscape
The global economic downturn in 2009 had an impact on
the demand for consumer goods. On the one hand,
consumers have been slower to buy new or replace
existing electronic goods. On the other hand, behavioral
shifts have created opportunities for growth, as people
choose to stay at home and watch movies on TV, cook for
friends or give themselves grooming and beauty
treatments; all of these are areas in which we offer
solutions.
Emerging markets such as Russia and Latin America,
where growth was anticipated, were also affected by the
downturn. However, these markets have shown
continued improvement over time.
5.3.3 Enabling people to enjoy a healthy lifestyle
Understanding consumers
In everything we do, we aim to improve the quality of
people’s lives through the timely delivery of meaningful
innovations delivered with the promise of “sense and
simplicity”. At Consumer Lifestyle the starting point for
this is developing a complete understanding of people’s
health and well-being needs, beliefs and attitudes.
In 2009 we carried out a number of activities to support
this, including a global survey of over 8,000 consumers,
4,000 of whom were in the emerging markets of Brazil,
Russia, India and China. This was one of the largest-ever
consumer surveys carried out on health and well-being.
The results of the survey will help us develop an even
deeper understanding of what consumers are looking for.
Tracking trends and identifying opportunities
Consumer Lifestyle works together with Philips Design to
monitor trends ranging from consumer tastes to design
aesthetics. With its global footprint, Consumer Lifestyle is
well positioned to understand emerging needs in local
markets. Country organizations are our interface with the
consumer, allowing us to accurately identify local needs,
tastes and commercial opportunities.
Applying insights to develop innovative solutions
We apply a rigorous product development process when
creating new value propositions. At the heart of this
process are validated consumer insights, which show that
the propositions meet a latent market need or needs. The
combination of insight, simplicity and innovation helps
differentiate us from the competition and create a
platform for sustainable business success.
Key platforms
In focusing on the domain of health and well-being, we are
tapping into significant trends – such as consumer
empowerment, growth in emerging markets and aging
populations – that will have a major impact on society in
the future.
In order to harness the available opportunities we have
identified four key platforms, each with drivers for
innovation and growth:
Healthy Life
Taking a holistic approach to enhancing consumers’ well-
being (both mental and physical).
Personal Care
Addressing people’s desire to look good and feel their
best so they can approach life with a greater feeling of
confidence.
Home Living
Making the home a more comforting, inviting and exciting
place to be, reflecting people’s personal identity and
preferences.
Interactive Living
Sharing life experiences without boundaries, addressing
the rapidly changing ways we interact with and access
media and entertainment.
5.3.4 About Consumer Lifestyle
The Philips Consumer Lifestyle sector is organized around
its markets, customers and consumers, with its businesses
focused on value creation through category development,
and its functions concentrating on value delivery through
operational excellence.
The market-driven approach is applied with particular
emphasis at local level, enabling Consumer Lifestyle to
address a variety of market dynamics and allowing the
sales organizations to operate with shorter lines of
communication with the sector’s six businesses. This also
promotes customer-centricity in day-to-day operations.
In 2009 the sector consisted of the following areas of
business:
• Television – experience television (including the 2009
Aurea and Ambilight range and the Cinema 21:9 model,
the world’s first cinema-proportioned LCD television
5 Our sector performance 5.3.1 - 5.3.4
90 Philips Annual Report 2009