Philips expands in decorative products

Published: 1/05/2010 at 06:47 AM (Bangkok post)
Online news: Marketing
Philips Electronics (Thailand) has expanded its product line to decorative lighting products and lamps in order to cover more market segments and become the market leader in the area within three years.
The target is also a part of three-year plan of Philips Electronics worldwide to become No.1 in the Asian consumer luminaires market.
CEO Prakorn Makjumroen said the company would have at least one-third of the consumer luminaires market by 2012. Sales are expected to double every year.
The consumer luminaires segment makes up about half of the 6.5-billion-baht lighting industry in Thailand.
Philips is widely known as a lightbulb manufacturer. But as homeowners today pay more attention to decorating and furniture, home-lighting solutions that could change the look and feel of a home will answer that changing need.
``The consumer luminaires market in Thailand is quite fragmented and there are no big players in this segment. There is no single competitor who offers products that cover every segment, while Philips is different as we provide functional, CFL, LED and decorative lighting,'' he said.
Srikanth Nott, general manager for consumer luminaires in Asia-Pacific, said it was the newest and fastest-growing business for Philips with revenue growth in double digits every year.
``We have a big plan for Asia and Thailand. The home-lighting fixture mar ket is worth about 33 billion and is growing fast at about 7% per year,'' said Mr Nott.
Philips started its consumer luminaires business in China and India 18 months ago and expects to lead both markets next year. The new product line also has a presence in Taiwan, Hong Kong, Indonesia, Malaysia, Singapore and Vietnam.
Asia contributes about 20% of Philips' total lighting revenue worldwide. Philips leads the market in Europe.
Philips (Thailand) plans to introduce about 400 models of home lighting in Thailand in 2010, and 800 next year. Products will include pendant, wall, ceiling and floor lights in various designs.
Revenue from lighting is expected to rise to contribute about 50% of the total revenue of Philips in Thailand within three years, up from 40% currently.
This year, LED-based lighting will see high growth as it is becoming a mainstream product, Mr Prakorn said.
Mr Nott said a transformation was under way in the global lighting business. The proportion of LED-based lighting will reach 75% in 2020, up from 7% in 2008.
The trend in home lighting is changing. People are more conscious about energy efficiency, more technology-oriented, and focus more on design, colour and impact on feelings.
``People are not happy having the same products and want to be different. Consumers in Asia _ Thailand is no exception _ are looking for more choices, more variety and good design,'' said Mr Nott.