The electronics industry is all about ‘technological advancement’, ‘brand consciousness’, ‘design element’ and ‘price competitiveness’. However, every now and then people get nostalgic about the older brands that are no longer available in the market. These brands generally have a very good reputation and people always want to see the brand back in business. Nokia is the best example of this phenomenon as they were once the leader in the mobile phone business globally. They made good quality devices and people had a certain kind of attachment with them.
Netherlands is world renowned for their endless farms of beautiful tulips, sights of old windmills and probably the best beers in the world. However, they do have an old veteran in the electronics sector. Koninklijke Philips N.V. is a Dutch multinational technology company headquartered in Amsterdam currently focused in the area of healthcare and lighting. Gerard Philips and his father Frederik founded the company in Eindhoven in 1891. Their first product was the famous tungsten light bulbs. This brand has been active in the market since then and is now over 125 years old. They have been involved in the manufacture of various electronics devices such as the home theatre systems, audio cassettes, headphones/earphones and televisions. However, they halted the manufacturing of TV sets last year. They are set to bring back their TVs into the Indian market this year with their licensee manufacturers from Taiwan, TPV Technologies. Earlier Phillips’ licensed partner was Videocon but it has been taken over by TPV.
Indian market has proved to be a fertile ground for the TV industry as it has seen constant growth in the recent years. With the advent of smart TVs and new display technologies such as OLED and 4K, the sales are going to be skyrocketed. TPV aims to be among the top players in the Indian market with the launch of around 8 models starting from the 22 inches to 65 inches. Phillips wants to stay in the market for long and as a part of its long-term plan it has collaborated with Dixon Technologies for assembly of the parts in India. This will reduce the costs and also comply with some of the make in India project rules that provide tax benefits.
Currently, the Indian market is filled with brands such as Sony, Samsung, LG, Xiaomi, TCL and Thompson. They are the leading TV manufacturers in the offline and the online channels. However, Phillips believe that they can grab hold of around 6-8% of the market share within the next few years with their launch of new TVs. The faith in the brand and their excellent product quality will be a major factor in reaching this goal.