Wednesday, April 24, 2013

Philips changes the product according to the customer's taste

The Dutch Philips is restructuring its business in the world, with a focus on adaptation of the products to regions where it operates. In Brazil, which added to other emerging countries, represents 35% of its global revenue, the company already took off the strategy: is producing larger whisks to supply the families of the North and Northeast, which are more numerous than those in the South and Southeast.
Philips installed one of four centers of development of small appliances for the kitchen that has in the world in Varginha (MG)-was opened in the second half of last year. The other three are in India, China and Europe. "The food and products to prepare it are essentially local business. We look at each country in search of opportunities, "said the Vice President of global consumer area, Pieter Note.
In terms of socioeconomic and cultural differences, Brazil is a full plate for the company. A survey conducted in 2012 pointed out some possibilities for regionalization of the manufacturer's portfolio, which started producing larger mixers to the North and Northeast States, with the remaining acquisition Walita, brand made by the multinational in 1971.
In these regions, the bowl of the mixer went on to be produced in larger size, whereas families are larger than those of the South and Southeast. "Are small adjustments, but linked to local consumer needs. In Russia, for example, developed a diced vegetable cutter, to facilitate the implementation of Russian salad, "says the note. With the restructuring (see text), Philips has defined three areas that will leverage the company's business going forward.
On the wave of changes, the Brazilian subsidiary reformulated 30% of its portfolio last year. Between releases and reissues, put 27 new products on the market. Invested $ 10 million in 20% increase in the capacity of main consumer goods factory in Varginha (MG). This was also group your products on Daily, live, Live Black and advance, to consider that the Brazilian, more strongly than other consumers, prefer to buy appliances that form a set with the same color and design. In Brazil, the company does not disclose results. Reports that grew up "double digits" in the country and 4% in the world in 2012.
To reduce the delivery time of goods from 12 to three days, the company will inaugurate a distribution center in Jaboatão dos Guararapes (PE) in the second half. In Brazil, the consumer product area includes four brands besides the Philips Saeco Senseo, Avent,: and Walita.
Philips dispute with over ten companies a market that grossed $ 4.4 million, 2.2% higher than in 2011, and sold 47.3 million units, an increase of 8.5%, according to GfK. "there's been popularization, with price erosion of up to 20% on sandwich makers or 10% in hair dryers", says the Director of GfK, Gisele Pougy. The time is favourable to the advancement of basic products, accompanying the purchasing power of the population. "The challenge of ERP products [multinationals] is in the price," says the Director.
Over the past two years, the global growth of Philips portable electro was above the market, according to the company. In 2011 the global market increased 7% portable electro and the company advanced 10%; as early as 2012, Philips grew 9%, while world consumption was discharged from 5%.
The strategy that pulls the results, according to Note, who came to Philips in 2010, is fine tuning to the local market. "We look at each country in search of opportunities. In China, for example, men have shaving finer, so we went with a Shaver, at a competitive price ", says the Executive. In Brazil the company is studying the creation of a eletroportátil for hair, says Note, without revealing more details. It gives a hint: "the Brazilian love straight hair".
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