Where to go Berlin in - IFA International

Meet the visionaries
Our recent acquisition of
Respironics has driven our
leadership in that field.
At the level below clinical
need, Philips is also creating
solutions for millions of
'problem sleepers', or
consumers who have
occasional sleep issues. Light
is a key factor in that strategy,
with different types of light
impacting on energy levels
and the body clock.
Our Wake-up Light is one
example of how we are
making a positive impact on
sleep patterns. The light's
function to help you to fall
to sleep - the dusk function
- and a function to support
a better wake-up, which we
call the dawn function.
Some of you will remember
from our Simplicity
Event that we have been
investigating the benefits
of blue light for some time.
The recent acquisition of
Respironics has brought us
new expertise, which helped
us to launch goLITE BLU. This
is a product that emits blue
light - the same blue light as
the summer sky. Researchers
have shown that blue light is
converted into the chemicals
that help our bodies to be
active and energetic, and
may lead to better sleep.
Blue LED technology was
recently used by NASA to
adjust researchers' body
clocks, in order to keep the
team synchronised for the
Mars probe mission.
Are there other examples
of consumer lifestyle
categories at embryonic
stage?
Yes - lifestyle management.
According to the World
Health Organization, we
are now less active and
more overweight than at
any time in history. The
WHO recommends at least
30 minutes of moderate to
intense activity five times
a week. The impact of this
reduced activity can be seen
in the rise of lifestyle-related
diseases, such as cancer,
obesity, heart disease and
type-two diabetes, to name
but a few. In fact, cancer is
so prevalent that one in every
two and a half people will
suffer from it at some point
in their lives. That means 27
million new cancer cases
before 2030.
IFA International • Friday, 4 th September 2009
People want to be more
physically active, but most
can't find the time. The first
step we have made to help
people improve their life
quality is a personal coaching
and service platform called
DirectLife. This is based
on the simple idea that
'what gets measured gets
managed'. Here's how it
works: DirectLife combines
advanced technology - to
track activity daily - with
proven psychology in
the form of step-by-step
coaching. The solution shows
you how to improve your
physical fitness by making
small changes to your daily
routine. It can be as simple
as walking in the park, biking
to work or playing catch with
your child. Based on your
personal profile, DirectLife
helps you to set balanced,
achievable goals to become
more active. It's not about
sports - it's about learning
how to gradually increase
your everyday activity level
and therefore to improve
your fitness.
DirectLife is being offered to
companies on a group basis
to boost employee fitness.
It provides everything that's
needed to get a company
into shape.
Your company has made a
number of acquisitions in
the fields of healthcare,
lighting and consumer
lifestyle over the past
year. Could you please
tell us more about these
acquisitions and why you
felt it was better to 'buy
in' solutions rather than
grow them in house?
We engage in organic as well
as inorganic growth. A recent
example is our acquisition of
Saeco International in Italy,
which is one of the world's
leading espresso machinemakers.
This move makes us
one of the leading coffeeappliance
manufacturers
in the world. It is also a
category that has a very
direct relationship with the
wellbeing of people. Indeed,
the acquisition of Saeco,
along with the development
of our Senseo range of
coffee-makers, gives Philips
a much stronger foothold in
the 'coffee culture' sector.
Through this acquisition, we
are creating a new, dynamic
market leader in coffee
machines with excellent
growth prospects for the
future.
It also makes total sense
for Philips to establish a
strong foothold in espresso
machines. Our reputed and
reliable brand in coffee
appliances puts us in an
excellent position to win in
this space. With Saeco, we
have acquired a company
with massive experience and
credibility in the espressomachine
market and a
strong management team,
which has agreed to stay on
following this acquisition. I
believe Saeco's expertise and
technical know-how, coupled
with Philips' strong marketing
and sales capabilities,
will create a winning
combination, allowing us to
capitalise on the completely
renewed range of espresso
machine propositions that
Saeco will be launching from
September onwards.
The enjoyment of quality
coffee, along with the
pleasant and positive
experience this can create
for consumers, ties this
acquisition to the very heart
of Philips' strategy to become
the leading company in
heath ahnd wellbeing. At the
same time, the acquisition of
Saeco is a real step forward
in further positioning the
Consumer Lifestyle sector
for the future. We are now
clearly entering a new phase
of this process."
Why do you think coffee
drinking is becoming so
much more important as
a social activity?
Attitudes to coffee vary
widely from culture to
culture, and individual
preferences can change
depending on the time of
day. What's more, consumer
tastes and preferences are
constantly evolving. As a
result, tracking consumer
trends as they emerge is at
the heart of Philips' strategy,
enabling the identification
of new markets and new
opportunities for innovation.
The home coffee market
can be divided into several
categories: instant, multiserve
or drip-filter, singleserve
open systems, singleserve
closed systems, single
serve espresso capsules and
fully automatic espresso.
Philips has a solution for
consumers in each category.
The espresso machine
segment is generally regarded
as the most valuable market
space within the global
coffee-appliances market, as
it typically achieves doubledigit
sales growth and profit
margins.
What strategy would you
recommend for surviving the
current economic slump?
Forecasts about the impact
of the financial crisis on
the consumer industries
remain unclear, but there
are some small indicators
of improvement in some
markets. But to emerge
stronger from the present
downturn, the consumerproducts
industry needs
to return to the basics -
delivering superior value
to consumers, identifying
new markets, creating new
categories and running
leaner organisations.
Hall 22 / Stand 101
IFA Intl Keynote 2009
Andrea Ragnetti, CEO Philips Consumer Lifestyle
4 th September 2009 - 9:45 to 10:30
Philips Consumer Lifestyle focusing on consumer health
and well-being.
www.ifa-international.org 15