10. and constant price cutting, and the first contraction since the 2001 dot-combust has been due to the global recession. Given the strong correlationbetween demand for durables (both new and replacements) and income, theindustry naturally suffered during the 2008-2009 period. However, projectionsfor current year going forward are very optimistic, as consumers resumespending, and producers launch new enticing variants to grab new customers.Leading players include Sony Corporation, Toshiba Corporation, WhirlpoolCorporation and Panasonic Corporation.Developing countries such as India and China have largely been shielded fromthe backlash of the recession, as consumers continued to buy basic appliances.In fact, China has been ranked the second-biggest market in the world forconsumer electronics. Despite the recession, their strong domestic economyand growing high-income population have buoyed demand leading toaggressive market growth.There is growing interest for new age products such as LCD-TVs and DVDplayers. Meanwhile, the penetration of the basic, largest dollar items such asovens, washing machines and refrigerators is also increasing. India too, haswitnessed a similar phenomenon, with the urban consumer durables marketgrowing at almost 10 %p.a., and the rural durables market growing at 25% p.a.Some high-growth categories within this segment include mobile phones, TVsand music systems.The Indian consumer durables industry has witnessed a considerable change inthe past couple of years. Changing lifestyle, higher disposable income coupledwith greater affordability and a surge in advertising has been instrumental inbringing about a sea change in the consumer behaviour pattern. Apart fromsteady income gains, consumer financing and hire-purchase schemes havebecome a major driver in the consumer durables industry.In the case of more expensive consumer goods, such as refrigerators, washingmachines, colour televisions and personal computers, retailers are joiningforces with banks and finance companies to market their goods moreaggressively. In addition, change in policy, such as the WTO FTA in 2005
11. resulted in zero customs duty on imports of all telecom equipment, therebyimproving the pricing and affordability of imported goods.ChallengesThe biggest threats to the local industry going forward are supply-relatedissues pertaining to distribution and infrastructure, as well as demand issuesdue to competition from imported goods. The lack of well developeddistribution networks makes it especially challenging to penetrate the fastestgrowing rural areas economically. In addition, regular power cuts and poorroad linkages make systematic production, assembly and delivery problematic.On the demand side, customers have increasing choice from both domesticallyproduced and imported goods, with similar features. This homogeneity makesit difficult for players to remain ahead of the competition.MNCs hold an edge over their Indian counterparts in terms of superiortechnology combined with a steady flow of capital, while domestic companiescompete on the basis of their well-acknowledged brands, an extensivedistribution network and an insight in local market conditions. The largestMNCs incorporated in India are Whirlpool India, LG India, Samsung India andSony India and home-grown brands are Videocon, Godrej Industries and IFB.Future ProspectsOverall, the industry’s future remains robust, and interested applicants willbenefit from a holistic learning experience; Many of the research, sales,marketing and advertising related roles will necessitate a good on-the-joblearning of target audiences, who may well be a totally new segment, based innever-before visited Class II and III towns. In addition, those with technicalbackgrounds will be able to leverage their knowledge and experience toconstantly develop and innovate the product variants. With more MNCsgrowing their Indian businesses, there is great potential to also learn best-in-class systems and management skills.
12. Royal Philips ElectronicsRoyal Philips Electronics of the Netherlands is a diversified Health andWell-being company, focused on improving people’s lives throughtimely innovations. As a world leader in healthcare, lifestyle and lighting,Philips integrates technologies and design into people-centric solutions,based on fundamental customer insights and the brand promise of“sense and simplicity”.Headquartered in the Netherlands, Philips employs over 120,000employees with sales and services in more than 100 countriesworldwide. With sales of EUR 22.3 billion in 2010, the company is amarket leader in cardiac care, acute care and home healthcare, energyefficient lighting solutions and new lighting applications, as well aslifestyle products for personal well-being and pleasure with strongleadership positions in male shaving and grooming, portableentertainment and oral healthcare.Global FootprintPhilips is a global leader across its healthcare, lighting and lifestyleportfolio. It is the world’s largest home healthcare company, beingnumber one in: Monitoring systems, Automated External Defibrillators,Cardiac Ultrasound, and Cardiovascular X-ray.We are number one in lamps in Europe, Latin America and Asia Pacificand number two in North America; in Automotive lighting, we areleading in Europe, Latin America, Japan and Asia Pacific.We are number one in the electric shavers and male grooming categoryglobally.
13. BusinessesHealthcarePhilips simplifies healthcare by focusing on the people in the care cycle –patients and care providers. Through combining human insights andclinical expertise, Philips aim to improve patient outcomes whilelowering the burden on the healthcare system. Advanced healthcaresolutions are a fundamental part of the portfolio for both healthcareprofessionals and consumers, to meet the needs of patients in hospitalsand at home. Philips Healthcare employs approximately 35,500 peopleworldwide.LightingPhilips Lighting is the leading provider of lighting solutions andapplications both for professional and consumer markets, transforminghow lighting is used to enhance the human experience in the placeswhere people live and work. Whether at home, on the road, in the city,shopping, at work or at school, we are creating lighting solutions that transform environments, create experiences, and help shape identities.We serve our customers through a market segment approach whichencompasses Homes, Office and Outdoor, Industry, Retail, Hospitality,Entertainment, Healthcare and Automotive. For these segments weprovide a wide range of offerings from across the entire lighting valuechain - from light sources, luminaries and lighting controls to lightingsolutions and services. Philips Lighting employs approximately 53,000.