Philips 2010 Annual Report Download - page 90

6 Sector performance 6.2.1 - 6.2.3
90 Annual Report 2010
6.2.1 Lifestyle retail landscape
The fragile economic environment in 2010 continued to
affect demand for many categories of consumer goods in
developed markets. Whilst emerging markets saw
consumer demand impacted by the economic
environment, they demonstrated greater resilience.
However, underlying consumer trends driving our
innovation remained stable:
• People are increasingly appearance-conscious and want
to boost their self-confidence and self-identity through
health and beauty regimes
• People want to prepare food and drinks that are healthy
and of good quality, and to do so quickly and without
hassle
• More and more consumers want to take control by
monitoring their health and lifestyle
• People want to create a home ‘haven’ – a space that
provides a sense of well-being and comfort
• Consumers want to create a digital command center at
home, which performs the role of a social digital hub
6.2.2 Helping people achieve a healthier and
better life
Consumer Lifestyle makes a difference to people’s lives by
making it easier for them to achieve a healthier and better
lifestyle. We believe that “sense and simplicity” can be the
goal of technology and apply that principle to create life-
enhancing solutions.
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 its heart are validated
consumer insights, which show that the propositions
meet a market need. The combination of insight, simplicity
and innovation differentiates us from our competition and
creates a platform for sustainable business success.
Where we play
We are active in our four value spaces in health and well-
being: Healthy Life, Personal Care, Home Living and
Lifestyle Entertainment, complemented by Accessories.
This portfolio is aligned with our brand equity and enables
us to provide our retail customers with a highly relevant
and attractive product portfolio. We focus on premium
propositions with our differentiating brand promise of
“sense and simplicity”, relevant to the target group.
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.
Healthy Life
The Healthy Life value space takes a holistic approach to
enhancing consumers’ health, addressing the needs for
mental and physical health and for healthy relationships.
Personal Care
The Personal Care value space addresses the consumer
need to “look and feel your best” and so helps people feel
more confident.
Home Living
The Home Living value space addresses consumers’
pressing need to have more time to spend on themselves
or with family and friends. We do this by creating high-
quality solutions that enable quick and convenient
cooking, preparation of beverages, cleaning, caring and
home comfort.
Lifestyle Entertainment
Lifestyle Entertainment is about enjoying entertainment
and the little events in everyday life: sharing time with
family and friends, having time off from a hectic schedule,
and moments of comfort, fun and caring.
6.2.3 About Consumer Lifestyle
The Philips Consumer Lifestyle sector is organized around
its markets, customers and consumers, and is focused on
value creation through category development and
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 2010 the sector consisted of the following areas of
business:
• Health & Wellness: mother and child care, oral
healthcare
• Personal Care: shaving and grooming, female depilation,
haircare, vitalight, skincare