Philips bets on Asian middle class
Asia's growing middle class and ageing population will make the region an increasingly significant growth driver for electronics giant Philips, said one of its top executives.
The region’s importance is growing not just as a market for the firm’s healthcare, lighting and consumer electronics products, but also as an innovation hub.
Its chief market leader, Ronald de Jong, told The Straits Times: "Around 34 per cent of our business is in growth economies, and Asia is by far the largest part of these growth economies, and we have grown rapidly in that part of the world."
With innovation hubs in places such as Singapore, China and India, Asia is also a region where his company’s presence in research and development (R&D) is growing.
De Jong, also a member of the Philips executive committee, noted: “Increasingly, Asia is not just a market where we sell to; it’s also a place where a lot of things happen that will cause repercussions in the rest of the world."
Philips has a significant presence in the Asean and Pacific regions, with about 10,000 employees across sales and marketing offices, manufacturing, and R&D facilities in 10 markets.
Philips has been in Indonesia, Pakistan, Singapore, Thailand, Australia and New Zealand for more than 60 years, and in the Philippines and Malaysia for more than 50 years.
It also has a presence in South Korea and Vietnam.
De Jong added: “There’s a big shift in the world, where the epicentre is moving rapidly to the East... we know this part of the world pretty well."
