Business

Tuesday April 7, 2009

Philips items still in demand


Manufacturer bullish about sales of LCD TVs and kitchen appliances

SHAH ALAM: Philips Malaysia Sdn Bhd continues to see steady demand for its liquid crystal display (LCD) television as well as growing demand for its kitchen appliances.

General manager of consumer lifestyle Eddie Ong said there were still sub-categories within the electrical industry that continued to enjoy growth despite the “quiet” period the industry was now facing.

“We believe there is still demand for electrical items such as LCD TVs, MP3 players, home theatre systems and steam irons in Malaysia,” he told a press conference in conjunction with the Philips Healthy Living Innovation showcase yesterday.

Philips announced yesterday the extension of its consumer lifestyle sector’s Formula One partnership agreement with the AT&T Williams F1 racing team for three more years from 2008 to 2010, following its three successful years of sponsorship with Philips Savers.

Eddie Ong

The new sponsorship has been broadened to span all its six business units under Philips’ consumer lifestyle sector to boost the brand image, awareness and loyalty as well as to lift sales.

“We hope we will continue to enjoy good revenue growth following the extension of our partnership with AT &T Williams,” Ong said, without revealing the value of the sponsorship.

He said Philips’ shaving category for the group saw a 10% growth in sales globally for the second quarter of last year against the previous corresponding period, thanks to its partnership with AT &T Williams.

To tap into sub-categories that are still growing, Philips plans to launch a wide range of LCD TVs, new home theatre systems, MP3 players, DVD players, micro systems and kitchen appliances this year.

“We expect our TV business unit to be our major revenue driver this year,” Ong said, adding that less than 20% of Malaysian households owned LCD TVs.

In view of the current economic downturn, Philips believed that consumers would now invest more in products that would help uplift the home environment, such as water and air purification systems, as they began to spend more time at home.

“We have also seen an increase in sales of kitchen appliances as customers now choose to cook at home to cut expenses,” said Ong.

Consumers were also beginning to appreciate the benefits of health and well-being products apart from the entertainment products, he added.

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