Philips 2012 Annual Report Download - page 71

6 Sector performance 6.2.1 - 6.2.3
Annual Report 2012 71
6.2.1 Lifestyle retail landscape
Across the world, consumers want to maintain and
improve their health and well-being. To achieve this, they
seek propositions that help them to look and feel their
best and to care for their family and friends: propositions
that help them to live well. This is as true of consumers
in growth geographies such as China as it is in developed
markets such as Western Europe.
In 2012 economic headwinds increased, resulting in
pressure on consumer spending in some markets.
However, we believe consumers will continue to demand
products that enhance their health and well-being,
creating resilience in our product categories.
Underlying trends continue to drive growth in our key
categories:
• Consumers have a growing interest in personal health
• Consumers are increasingly appearance-conscious
• Consumers want healthy food that is also easy to
prepare
• In a complex market environment, consumers look for
responsible brands they can trust
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.
Consumer Lifestyle empowers its business and market
organizations to work together in order to address the
different and changing needs of consumers and customers
across the world.
We are increasing the speed, quality and local relevance
of product innovation and expanding our distribution,
thereby capturing the increasing spending power of
growth geographies.
6.2.3 About Consumer Lifestyle
At Consumer Lifestyle we are delivering on Philips’ vision
to make the world healthier and more sustainable through
innovation. We have a global footprint, with an
established presence in both mature and growth
geographies. Our investment in innovation and local
business creation enables us to deliver a stream of locally
relevant, meaningful innovations. We have a leading global
brand, which is highly trusted across the world.
The Philips Consumer Lifestyle sector is organized around
its businesses and markets, and is focused on value
creation through category development and delivery
through operational excellence.
We plan, resource and manage performance by Business
Market Combination (BMC). Our operating model
stimulates entrepreneurship and speed by ensuring clear
accountability and by moving decisions closer to our
customers and markets.
In 2012 the sector consisted of the following areas of
business:
• Health & Wellness: mother and childcare, oral
healthcare
• Personal Care: male grooming, skincare, beauty
• Domestic Appliances: coffee, floor care, garment care,
kitchen appliances, water & air, beverage appliances
• Lifestyle Entertainment: audio and video entertainment;
communications, headphones and accessories
Total sales by business 2012
as a %
Health & Wellness
15
Lifestyle
Entertainment
27
Domestic
Appliances
33
Personal Care
25
We offer a broad range of products from high to low
price/value quartiles, necessitating a diverse distribution
model. We continue to expand our portfolio to increase
its accessibility, particularly for lower-tier cities in growth
geographies. We have implemented innovative
approaches in online and social media to build our brand
and drive sales.
Under normal economic conditions, the Consumer
Lifestyle sector experiences seasonality, with higher sales
in the fourth quarter resulting from the holiday sales.
Consumer Lifestyle employs approximately 18,900
people worldwide. Our global sales and service
organization covers more than 50 developed and growth
geographies. In addition, we operate manufacturing and