LIVING ROOM LIFESTYLE
LIVING ROOM LIFESTYLE When Philips Audio Comes Under the Gibson Brand ANYTHING Is Possible WOOX Innovations – makers of Philips audio products – are at IFA for the first time with new parent company Gibson Two legendary names with an incredible passion for music have come together as it was recently announced that Gibson had acquired WOOX Innovations – manufacturers of Philips audio products. But what prompted Gibson to join the WOOX adventure? IFA International Editor in Chief Richard Barnes put the question to Gibson CEO, Henry Juszkiewicz Henry E. Juszkiewicz: I’ve always considered ourselves as a music company, and while we were in a segment of the music business for many years – the guitar business – I also considered ourselves as a growth company. Since 1986, we’ve grown on an annual rate in excess of 20%, so we were always thinking beyond guitars and musical instruments. I was already on the board of the CEA years ago, and we (…) our goal is to be 50% of the global music lifestyle business participated in that show even though we were only really a musical instruments company; but I knew we would at some point be a more significant player in the music business. I always felt the industry was not doing things properly as far as the consumer was concerned, so it was my ambition to correct that. The way to do that is to be in the entire music business and not just a segment, to bring it all together so that you have a systematic approach to consumer fulfilment. It’s a long vision, and frankly I would have never dreamed to be involved with Philips and WOOX and Wiebo and his brilliant management. I feel very lucky that this was a possibility and that we were able to act on it. The vision of really being the leading music company in the world is what has driven me for many years, and our goal is to be 50% of the global music lifestyle business. Through other takeovers? Probably more acquisitions, but I think there are some brilliant products. Woox already has five or six hit products here at IFA that in my opinion are way under exploited. Brilliantly executed, very relevant to consumers. And I think if we can bring awareness to these products we can grow significantly. Wiebo, you’ve already spoken to us about the importance of heritage in sound research and quality. How important is that in this synergy with Gibson? Wiebo Vaartjes: I think that’s the core of it. Our heritage is important for our business, and even more so the strengh of our teams in delivering great sound design and innovation. And when we got into contact with the Gibson team, we recognised that they had the same passion for sound and music and entertainment that we had. Combining these competencies and being able to deliver all this on a global scale was quite interesting for them. The word “powerhouse” keeps coming to mind. Henry, was it this “passion for sound” that drew you into Philips/WOOX? Absolutely. I think great businesses are built on passion. Henry Ford was passionate about cars, Mr Honda was passionate about engines, Steve Jobs was passionate about his technology. It’s passion that makes greatness, and that ultimately goes to the benefit of consumers. The DNA of both companies is very similar. We had very passionate, almost crazy passionate inventor/ innovators in our company, such as Les Paul, who among other things also invented multi-track recording. Wurlitzer is another example – who invented the first electric music player. At the core of Philips is great innovation. They invented the compact cassette. They invented the CD, the DVD, the SACD, the MP3. Everything you listen to, including the file format, was a Philips innovation, and they still have that passion and drive. It’s kind of like we’ve known each other for a long, long time, and it’s very powerful what we can do going forward. What’s going to happen with the Philips brand? WV: Together with this deal, there is a seven-year brand license. So you will see here at IFA that we are still part of the Philips brand. We are together with the television group and Philips consumer lifestyle promoting the brand and its positioning as we used to do when were an integral part of Philips. If we combine the capabilities and competencies of our organisation now with Left to right Henry E. Juszkiewicz Chairman and CEO, Gibson those of the other brands in the group, you can develop a multi-brand strategy, which is Philips first, but then very clearly accompanied by other brands in the consumer electronics domain. HEJ: We feel it’s a family. I approach it from a classic branding point of view. If you fly only one flag that limits you to whatever that flag is in the mind of a consumer. When you have multiple flags, then you can steer the appropriate product development to the appropriate consumer and really get a much better penetration of the market. Hall 22 Stand 101 Wiebo Vaartjes CEO, Woox Innovations 28
LIVING ROOM LIFESTYLE Focus on Personal Health and Wellbeing Philips Consumer Lifestyle President & CEO Pieter Nota on Philips’ new roadmap Pieter Nota President CEO, Philips Consumer Lifestyle IFA PRODUCT HIGHLIGHTS The Saeco GranBaristo Avanti is the world’s first fully automatic connected coffee machine for home use. With inspiration from the best baristas, it opens up the world of coffee for consumers and shows them how to create their favourite coffee at home. In the area of Personal Care, Philips is introducing the Philips Shaver Series 9000, which – combined with the Philips Grooming app – enables men to maximise their shave. The Philips Shaver Series 9000 features Contour Detect Technology which allows the shaving heads to flex in eight different directions, following the contours of the face and removing up to 20% more hair in one pass. The Philips Grooming app was developed to provide men with personalised shaving and grooming advice, giving them the confidence to achieve the look they want. Hall 22 Stand 101 Philips Consumer Lifestyle has, as we all know, been re-centring its business. But what does this mean for distribution channels? IFA International put the question to Philips Executive Vice President, Chief Executive Officer of Philips Consumer Lifestyle and member of the Executive Committee, Pieter Nota. At Philips, we strive to make the world healthier and more sustainable through meaningful innovation. Our goal is to improve the lives of 3 billion people a year by 2025. To better reflect our mission and vision, in recent years, Philips Consumer Lifestyle has shifted its business to fully focus on Personal Health and Well-being. We have successfully found new partners for our Television, and Audio and Home Entertainment businesses, ensuring continued Philips branded innovation in this space. With Philips Consumer Lifestyle, we will further focus on growth within the core businesses of Personal Care, Health & Wellness and Domestic Appliances, enabling people to be healthy, enjoy life and live well. What exactly remains in the CL section? Philips Consumer Lifestyle’s ambition is to be a leader in Personal Health and Well-being, empowering people to make positive changes for a healthier lifestyle. We are leveraging important mega-trends such as the growing interest of consumers in their personal health and wellbeing and their desire to look and feel good and the way that consumers are looking for connected solutions that are smart and personalised. With our Personal Care, Health & Wellness and Domestic Appliance businesses we provide consumers with superior solutions that make a real difference to their lives. What key products from your organisation will be making a splash at IFA? At this year’s IFA, Philips is introducing a broad range of connected products and smart applications that respond to the need and expectation of consumers for greater connectivity, personalisation, control and convenience. I would like to highlight the following introductions: The Philips Sonicare for Kids with the Brush Busters app is supporting parents to get their kids into good brushing habits. This app turns brushing into a game with fun characters and rewards, helping children learn to brush properly and regularly. (…) we will further focus on growth within the core businesses of Personal Care, Health & Wellness and Domestic Appliances (…) Also for families, the Philips Smart Air Purifier is a great solution for those living in megacities. Via the app, connected to the air purification device, it provides real time data on air quality in and outside of the home and can be activated from anywhere. This enables people to control the air quality in the home, at any time, from anywhere. What would you say differentiates Philips as a company in the market today? At Philips, innovation is in our DNA. We are a technology company that cares about people, investing in the space where innovation and people meet. We do not innovate for technology’s sake, we know that innovation is only meaningful when it truly makes a difference to people’s day-to-day lives. How do you leverage IFA and how important is the show as part of your marketing strategy? Philips has been present at IFA since the very first show in 1924. It is inspiring to see how both Philips and IFA keep evolving, based on the important mega trends in the world. IFA has transformed into a true global innovations show, a perfect place for Philips to introduce its latest innovations. For our German team, it is also a key moment in the year to meet with trade partners. www.ifa-international.org IFA International • Monday 8 th September 2014 29
