So, banish those Nineteen Eighty-Four visions from your head. This is 2004 – the year after Philips achieved a banner year in terms of sales and technological breakthroughs. Philips Consumer Electronics (PCE) Philippines, the local arm of Royal Electronics of the Netherlands, reported that despite the overall market for mainstream audio-video products remaining relatively flat, Philips generated an increase in revenues by more than 35 percent for 2003, and closed the year with a healthier bottom line and cash position as compared to previous years.
Alan Sparks – senior VP-Region Asia Pacific, Middle East & Africa – will be quick to say that the success of Philips in the Philippines last year stemmed from sound strategizing, not just constantly pursuing product innovation.
"Our products have really improved over a period of time, allowing us to get more of the market share, particularly Plasma TV and DVD products," Alan Sparks says, adding that they avoid price wars among the channels themselves. "And the team here in the Philippines has worked very strongly in creating partnerships with their channels. And I think that’s starting to pay off – both for the channels and for us."
Philips’ sales performance has made it the fast growing brand in the industry last year, moving up in overall market standing to No. 4 from No. 5 last year.
Sparks says there is also the matter of rejuvenating the brand.
"If you look at our ‘Do Your Own Thing’ campaign on MTV, you will notice that we’re driving a stronger message to the younger set. And we’re bringing them products that address that market," he says. Thus, Philips has a bevy of new, funky products for the youth. Such as the Philips Wearable Digital Audio Key Ring, which can store over six hours of music (MP3 or WMA format). Or the Philips-Nike MP3 player (with flight headphones, armband, butterfly clip, etc.), for joggers who like running to Jackson Browne’s Runnin’ on Empty or Olivia Newton-John’s Let’s Get Physical. Or the Philips HDD 100 Audio Jukebox, which could carry your entire Rolling Stones or Beethoven CD collection – just imagine 15 gigabytes of storage. Something that even the omnipresent Big Brother would dream of possessing.
But what about us: relatively smaller brothers in Asia who want to experience cutting-edge Philips technology firsthand? Sparks debunks the misconception that we are tightwads when spending on gadgets is concerned.
"We see our high-end products moving quite well in the Philippines. Same with India, Pakistan and China," he says.
For this year, Sparks and the rest of the Philips organization are pursuing a couple of strategies.
"We are focusing on three key areas – on home entertainment, on personal infotainment and on the ‘Do Your Own Thing’ campaign," shares Sparks. "We are zoning in on the ‘Experience Everything, Hear Everything and Feel Everything’ thrust."
Philips will also focus on the GSM phones. "We do very well in China, so there’s no reason why we can’t bring those phones here and do well. I think we can grab a share of the market," he says.
Sparks admits that his background in IT has helped him immensely in his capacity as Philips VP. "We see a lot of convergence taking place. My experience in the networking and computing environment stands me in good stead to at least understand how all this will develop and what to do about it."
As far as business philosophy goes, Alan Sparks puts the emphasis on one word: honesty.
"I think you need to be extremely honorable in business. The critical aspect is this whole partnership basis of doing business, not of selling to a channel but selling through and with a channel, and making sure that the company and the channel are both successful is for me a vital element."
He sees Philips business partners as an extension of the company.
"In the Philippines, they’ve done a very good job in that respect. The way we market here and deal with our channels have made us stand tall over the competition. And I want to stretch that even more. I think Philips is a very honest company. It is a long-established brand that always deals with integrity. I think if we continue to apply our principles, then the sky is the limit."