CONFERENCE SPOTLIGHT
CONFERENCE SPOTLIGHT Sense and Sustainability VIDEO Philips Electronics Underline Importance of Lifestyle Solutions at IFA Keynote Rudy Provoost, Executive Vice President Royal Philips Electronics and Chief Executive Officer, Philips Consumer Electronics, kicked of the 2007 keynote season with a challenge to the CE industry and to IFA. “Last year I spoke about the idea of convergence on the grounds that it is an out-dated idea of what convergence should be, that is to say merely based around driving consumers to buy new products. But what the CE industry really needs is a new kind of convergence, where products are all about enhancing people’s lives through solutions that go beyond the old paradigm. And IFA also is being forced to change, it is becoming a lifestyle market even though in the past it has been primarily technology driven. In the last 12 months, I believe that Philips has made great strides in this direction, which at root involves becoming a healthcare/lifestyle/technology company as opposed to a manufacturer of products.” Provoost does not, however, expect the global industry to change overnight: “I realise that the notions of healthcare and lifestyle are not areas that are normally associated with IFA,” he said. “It is primarily a technology fair, so you’re probably asking yourselves how those ideas fit in to our industry. And the answer is that more and more of our products, especially flat screen TVs and MP3 players, are inspirational lifestyle propositions that enhance the quality of people’s life.” Ultimately the consumer experience is everything: “CE should refer to Consumer Experience rather than Consumer Electronics,” Provoost said. “We are in the consumer emotion business. And that is the key, because consumers make increasingly well-informed and intelligent choices and look for genuine solutions. So we have to offer meaningful innovation that addresses the consumer wellness paradigm.” Business Week recently promoted Philips from 67 th to 38 th place in its brand value index while the Dow Jones named the company as the global leader in sustainability. “We know that we need to supply people-centric innovation and profound experiences that enhance the space in which people live, but we have not abandoned technology,” Provoost said. “The architecture is still important to us, but it is much more important to help consumers to relax and live healthily so our products are not only based on rational ideas, they also include an emotional aspect which addresses the desire for well-being and pleasure in a crowded and stressful world.” The company’s origins as a lighting company have provided it with a certain familiarity. Generally speaking consumers are comfortable with the Philips brand. “We know that the brand is solid but our marketing, especially around new products like the Aurea Flat Screen, is changing. It’s not all about ‘tech and spec’. The advertising campaign is a work of art that communicates the feminine, emotional aspects of the product,” he said. “Consumers are actively seeking a better life balance and mood enhancement. After a hard day they want truly compelling experiences and products like AmbiSound Home theatre provide an all-in-one solution that also avoids cables and clutter.” As well as providing products and solutions for the home, Philips is also engaged in improving the urban environment: “100 years ago less than 10% of people lived in cities, that figure currently stands at 55% and is expected to rise to 75%,” Provoost said. “Therefore the issue of urban beautification becomes very important. Light provided by the AmbiLight system can make an important difference to the quality of urban life by enhancing feelings of security as well as adding a sense of spectacle and also bringing a greater sense of identity.” You might not immediately see a connection between a shaver and the new Aurea but Provoost sees one: “Of course there is no technical connection but the link lies in the value of feeling good about yourself. Even a device as everyday as a shaver is part of this chain of well-being,” he said. “It’s all part of consumercentric thinking and this is why our motto is Sense And Simplicity. This is our commitment, it is our DNA and we apply ourselves in that way across all our products.” Philips is also the world’s second largest provider of healthcare products such as scanners and defibrillators. “Population growth means that these products are more and more important. Plus there is the fact that within 10 years there will be over 2 billion people over the age of 60 and healthcare expenditure will constitute 10% of global GDP,” Provoost said. “This means that the lifestyle concept will relate to an increasingly broad spectrum of products that are about healthy living.” IFA International • Monday, 3 rd September 2007 23
