A few days ago, the reporter saw in the home appliance stores such as Shanghai Suning Appliance that Philips TV was still in normal sales, and the products, prices and after-sales services were not adjusted.
Philips announced that it will sell audio, video, multimedia and accessories to Japan's Funai Electric in the form of a €150 million cash plus brand license fee. As a result, Philips, which has more than 80 years of consumer electronics business history, has divested its consumer electronics business.
Stripping consumer electronics business
Looking at Philips' architecture and business adjustments over the past few years, its consumer electronics business is shrinking. In August 2006, Philips sold its semiconductor business; in September 2006, it sold its mobile phone business to China's electronic information industry group; since 2007, it has successively reduced its holdings of liquid crystal panel companies; in 2008, it no longer produced to the United States. And TV sets sold in the Canadian market. This time, it completely withdrew from the consumer electronics market and concentrated on medical equipment and lighting business.
Philips CEO Wan Hao feels relieved, he said, the consumer electronics business diluted the entire group's profit margins, it is time to get rid of this business.
Philips related people said that consumers are generally turning to online music, movies and games instead of buying traditional CDs and DVDs, plus the impact of iPhone, iPod, iPad and other products, the traditional home entertainment market is gradually shrinking and profit margins. not tall.
Liu Buchen told reporters that the rapid response capability and low-price strategy of Chinese and Korean companies have made the competitiveness of consumer electronics products in Europe, America and Japan continue to decline, and exiting the market is the general trend. Not only Philips, Germany's Siemens, France's Alcatel and Sweden's Ericsson also exited the consumer electronics market. Moreover, compared with consumer electronics giants such as South Korea's Samsung and Japan's Sony, the European company's product line is too thin, the response to user demand is not agile, and the technical advantage is not well transformed into a market advantage.
“It is undeniable that European companies such as Philips have been slow to adapt to the trend of mobile internet and intelligence in the global electronic market, which is why their business has come to an end.†Liu Buchen said that people interact with mobile devices and between various devices. The way of interaction is constantly changing, which has become a new trend of life. If you don't keep up with the trend, you will inevitably be eliminated.
Focus on high-profit areas
It is reported that Philips in the future will focus more on high-margin areas such as medical, lighting, and small household appliances, and position it in a new direction of transformation. Japan's Funai Electric will continue to provide services to consumers of Philips' audio-visual and accessories business, entering markets such as Brazil, Russia, India and China.
At the same time, Philips Financial News showed that in the fourth quarter of 2012, Philips' profit was 875 million euros, a year-on-year increase of 50%. Its LED lighting business sales increased by 43% year-on-year, currently accounting for 25% of the lighting business. Previously, the head of Philips Lighting China once said that the LED lighting business and the traditional lighting business will keep pace with each other in the future. In addition, Philips' personal care, health care, home care and kitchen appliances, coffee machine business, achieved nearly 10% growth.
Liu Buchen told reporters that Philips’ income in medical equipment has already exceeded the income of its electronics industry. Moreover, the medical industry has become the main force of Siemens, GE and other companies. Sony and Samsung also expressed their optimism about this market. Medical equipment profit margins are as high as 40% to 50%, and the future of consumer electronics companies will become a wave of involvement in the medical field.
"The direction of Philips' transformation is still more optimistic." Liu Buchen pointed out that compared with the already saturated consumer electronics market, with the improvement of people's quality of life, the rising space in the medical equipment field is very impressive.
It is worth noting that the industry's voices are different for the development prospects of the consumer electronics sector in 2013. Liu Buchen said that the successive withdrawals of established European and American companies such as Philips and Electrolux in the field of consumer electronics all indicate that in 2013 and even in the future, the consumer electronics industry not only needs to rely on innovation to make itself full of vitality, but also needs to be based on the needs of the consumer market. Position the product.
Related reports
Sony stopped selling MD player in March
Recently, it is reported that Sony plans to stop selling MD players from March this year, which means that MD, the digital music medium invented by Sony, will come to an end.
MD is an abbreviation for "Mini Disc", which has a disc size that is half the size of a regular CD. It is reported that Sony launched the Walkman brand MD player in 1992. In fact, the news that Sony has stopped selling MD players has been heard in recent years, but there is no clear timetable. In July 2012, Sony announced that it would gradually reduce its MD production in September of that year. Today, the company officially announced that the MD player will be discontinued in March.
According to Sony, the shipment of MD combo in the electronics industry peaked in 2000, approaching 3 million units, and in 2012 it fell to about 100,000 units. Sony has stopped shipping MD recorders in overseas markets.
The strongest opponent of the MD player is Apple's iPod. Since the launch of the Apple iPod in 2001, the booming MP3 market has killed physical media in the past 10 years. According to the reporter's understanding, the current situation of CD sales is also very unsatisfactory, and the old physical media such as MD is more exhausted.
Stopping shipments is due to the popularity of machines that can download music from the Internet, resulting in a weak demand for MD players. Sony said that it will continue to produce MD discs at this stage and continue to provide repair and other customer services for MD players.
In the eyes of the industry, the mobile Internet has changed people's music consumption habits and changed the fate of digital music media. According to statistics, in 2011, among the 1.1 billion music users in China, mobile Internet users accounted for 700 million. "As consumers gradually turn to digital music players that don't require external storage media, Sony can only no longer sell MD players," industry sources said.
Philips announced that it will sell audio, video, multimedia and accessories to Japan's Funai Electric in the form of a €150 million cash plus brand license fee. As a result, Philips, which has more than 80 years of consumer electronics business history, has divested its consumer electronics business.
Stripping consumer electronics business
Looking at Philips' architecture and business adjustments over the past few years, its consumer electronics business is shrinking. In August 2006, Philips sold its semiconductor business; in September 2006, it sold its mobile phone business to China's electronic information industry group; since 2007, it has successively reduced its holdings of liquid crystal panel companies; in 2008, it no longer produced to the United States. And TV sets sold in the Canadian market. This time, it completely withdrew from the consumer electronics market and concentrated on medical equipment and lighting business.
Philips CEO Wan Hao feels relieved, he said, the consumer electronics business diluted the entire group's profit margins, it is time to get rid of this business.
Philips related people said that consumers are generally turning to online music, movies and games instead of buying traditional CDs and DVDs, plus the impact of iPhone, iPod, iPad and other products, the traditional home entertainment market is gradually shrinking and profit margins. not tall.
Liu Buchen told reporters that the rapid response capability and low-price strategy of Chinese and Korean companies have made the competitiveness of consumer electronics products in Europe, America and Japan continue to decline, and exiting the market is the general trend. Not only Philips, Germany's Siemens, France's Alcatel and Sweden's Ericsson also exited the consumer electronics market. Moreover, compared with consumer electronics giants such as South Korea's Samsung and Japan's Sony, the European company's product line is too thin, the response to user demand is not agile, and the technical advantage is not well transformed into a market advantage.
“It is undeniable that European companies such as Philips have been slow to adapt to the trend of mobile internet and intelligence in the global electronic market, which is why their business has come to an end.†Liu Buchen said that people interact with mobile devices and between various devices. The way of interaction is constantly changing, which has become a new trend of life. If you don't keep up with the trend, you will inevitably be eliminated.
Focus on high-profit areas
It is reported that Philips in the future will focus more on high-margin areas such as medical, lighting, and small household appliances, and position it in a new direction of transformation. Japan's Funai Electric will continue to provide services to consumers of Philips' audio-visual and accessories business, entering markets such as Brazil, Russia, India and China.
At the same time, Philips Financial News showed that in the fourth quarter of 2012, Philips' profit was 875 million euros, a year-on-year increase of 50%. Its LED lighting business sales increased by 43% year-on-year, currently accounting for 25% of the lighting business. Previously, the head of Philips Lighting China once said that the LED lighting business and the traditional lighting business will keep pace with each other in the future. In addition, Philips' personal care, health care, home care and kitchen appliances, coffee machine business, achieved nearly 10% growth.
Liu Buchen told reporters that Philips’ income in medical equipment has already exceeded the income of its electronics industry. Moreover, the medical industry has become the main force of Siemens, GE and other companies. Sony and Samsung also expressed their optimism about this market. Medical equipment profit margins are as high as 40% to 50%, and the future of consumer electronics companies will become a wave of involvement in the medical field.
"The direction of Philips' transformation is still more optimistic." Liu Buchen pointed out that compared with the already saturated consumer electronics market, with the improvement of people's quality of life, the rising space in the medical equipment field is very impressive.
It is worth noting that the industry's voices are different for the development prospects of the consumer electronics sector in 2013. Liu Buchen said that the successive withdrawals of established European and American companies such as Philips and Electrolux in the field of consumer electronics all indicate that in 2013 and even in the future, the consumer electronics industry not only needs to rely on innovation to make itself full of vitality, but also needs to be based on the needs of the consumer market. Position the product.
Related reports
Sony stopped selling MD player in March
Recently, it is reported that Sony plans to stop selling MD players from March this year, which means that MD, the digital music medium invented by Sony, will come to an end.
MD is an abbreviation for "Mini Disc", which has a disc size that is half the size of a regular CD. It is reported that Sony launched the Walkman brand MD player in 1992. In fact, the news that Sony has stopped selling MD players has been heard in recent years, but there is no clear timetable. In July 2012, Sony announced that it would gradually reduce its MD production in September of that year. Today, the company officially announced that the MD player will be discontinued in March.
According to Sony, the shipment of MD combo in the electronics industry peaked in 2000, approaching 3 million units, and in 2012 it fell to about 100,000 units. Sony has stopped shipping MD recorders in overseas markets.
The strongest opponent of the MD player is Apple's iPod. Since the launch of the Apple iPod in 2001, the booming MP3 market has killed physical media in the past 10 years. According to the reporter's understanding, the current situation of CD sales is also very unsatisfactory, and the old physical media such as MD is more exhausted.
Stopping shipments is due to the popularity of machines that can download music from the Internet, resulting in a weak demand for MD players. Sony said that it will continue to produce MD discs at this stage and continue to provide repair and other customer services for MD players.
In the eyes of the industry, the mobile Internet has changed people's music consumption habits and changed the fate of digital music media. According to statistics, in 2011, among the 1.1 billion music users in China, mobile Internet users accounted for 700 million. "As consumers gradually turn to digital music players that don't require external storage media, Sony can only no longer sell MD players," industry sources said.
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