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Briefing the trade press on the Philips DAP plans for 2007, Elwin de Valk, new vice president and managing director of Philips DAP, confirmed that innovations in health care and lifestyle will be the focus of the company's efforts in the coming months.
The product solutions in which Philips DAP will be investing will be the continuation of the company's brand promise of 'Sense & simplicity'. In fact, Philips, spends 50% of its R&D budget on innovations (35% in 2005), and 35% of the company's sales come from new product introductions. To protect its product innovations the company continues patenting them, and in 2006 Philips secured 90 new product patents.
Although Philips is the worldwide leader in small domestic appliances (with £1.8 billion sales), the heartland of Philips SKA product developments is male grooming. Philips leads in bringing to the market 'firsts' in this product category, such as the DIY clipper with 180° rotating head. In male shaving alone Philips holds a 60.8% market share, with 8.5% annual growth. Similar position the company has in beard trimmers – with 50.5% market share and 12% growth. In 2007, the company plans to grow its market share in these sectors, and also in garment care, floor care and kitchen appliances, confirmed Justine Guest, Philips DAP marketing director. The company's overall investment in supporting Philips brands will be £10 million in the UK alone. This will include TV, online and print advertising but also new format of promotions involving direct interactions with consumers.
