We operate in an environment that’s dramatically different to this time last year, and this will require us to adopt very different approaches in 2009. At Philips we are clear that our New Year’s Resolution is to drive value creation – for Philips, for our retailers and our consumers.
In 2008 we started a journey with the creation of a new Consumer Lifestyle business – the combination of our Consumer Electronics and Small Domestic Appliance divisions. This move created a stronger, more retail-focused business, whilst at the same time giving us a unique brand proposition that touches multiple aspects of a consumer’s daily life, from waking up with Philips Sonicare Toothbrushes to winding down with Cinematic Flat TV’s.
Despite a tough climate, many of our categories performed well in 2008. For example, our Oral Healthcare, TV Accessories, Kitchen Appliance, Shaving, and Avent Mother & Childcare businesses remain buoyant. However, more aggressively competitive markets, like Flat TV, require a different focus. In a market characterised by dramatic price erosion, our 2009/10 strategy is to secure long-term profitable growth through product and market differentiation. Creating value, supported by retail partners that share our vision, will be critical in the years ahead.