At the Guangzhou International Lighting Fair, a CDM ceramic metal halide lamp, which maps Philips' China route to the industry-wide goal of energy conservation and environmental protection, Philips is also trying to spread its top-end commercial lighting technology to the mortal world.
Just on New Year's Day this year, Royal Philips of the Netherlands announced the latest simplification plan: to adjust five branches to three. This multinational giant, who is undergoing transformation and facing the challenges of profit pressure, has been involved in the fields of lighting products, toothbrushes, X-ray machinery, electric razors and color TVs until its global chairman and CEO Ke Cilei is determined to slim down Philips. In the long-term perspective, the prospects for lighting products and health care have been pushed to a more prominent position by Philips, which together with home appliances constitute the core of the Philips business group.
The market is increasingly demanding more environmentally friendly lamps, and the aging society has driven the purchase of health care products to rise. These signals have created opportunities for Philips. Time magazine describes it like this. In the United States, Philips has done a lot of additions and subtractions, selling some of the discarded semiconductors, components, mobile phones and tablets, and using funds for mergers and acquisitions of lighting products and health products companies. Globally, Philips has invested more than 10 billion euros in acquisitions over the past two years. For example, Philips Lighting acquired Lumileds in 2005, PLI in 2006, and TIRSystems in 2007. To be sure, similar steps will be staged in China.
In the industry's view, Philips has maintained a good performance in the global lighting market for a long time. In 2007, Philips Lighting's revenue reached approximately 6.1 billion euros, while Philips Lighting's sales increased 16% in the first quarter of this year. In terms of technology, Philips has also taken a favorable position in advance. It has introduced LED (light-emitting diode) lighting strategy on a large scale and mastered high-end patents, and has caught up with the era of high energy costs and high environmental awareness.
In order to drive change, the simplified Philips re-planned the management system and built an organization from the outside to the inside (rather than the traditional inside to outside) around the global market. In fact, when the core technology is still the pursuit of the goal of Chinese companies, Philips has begun to turn technology-oriented into market-oriented. According to Philips' explanation, from the action point of view, this means that Philips' sales in China will gradually expand from a narrower high-end customer base to the second and third-tier markets, and its actions in the commercial lighting market are exactly the same: On Sunday in Guangzhou, Liang Hanfeng held a celebration for Philips China's 8 millionth CDM ceramic metal halide lamp. Together with him, PietDerks, the two held a torch together, and the future of the CDM career, the Dutchman led the world. The Philips Lighting R&D team, along with Liang Hanfeng, has extensive experience in branding and sales of cross-commercial and consumer electronics.
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