Byravee Iyer
Feb 26, 2013

Why Philips plans to drop 'Electronics' from its name

GLOBAL - Dutch company Royal Philips Electronics has announced that it plans to drop the word ‘Electronics’ from its name as it moves away from consumer electronics and focuses more on health, wellness and lighting products.

Royal Philips Electronics is keen to drop the word 'Electronics' from its name
Royal Philips Electronics is keen to drop the word 'Electronics' from its name

The proposal to rename the company ‘Royal Philips’ will be put to vote at the annual general meeting in Amsterdam on 3 May.

“Philips is a diversified technology company focused on delivering meaningful innovation in healthcare, energy-efficient lighting and consumer health and well-being,” said CEO Frans Van Houten in a statement.

According to Elvin Ong, regional corporate communications director for Philips in Asia, the name change is part of the company’s decision last year to change its mission and vision to make the world healthier and more sustainable. “As part of that we transferred our traditional consumer electronics business, comprising TV, audio and video to other partners,” Ong said. Last month, Philips sold its lifestyle entertainment business to Japanese company Funai for about US$200 million. “Royal Philips much better reflects our current and future portfolio,” Ong added.

Brand experts lauded the move. “It’s a sensible thing to do,” said Alan Couldrey, CEO of Brand Union. “Electronics is not a modern and contemporary name, besides this gives them the option to diversify.”

“It’s a forward-looking positive move, given Philips shift in corporate strategy to move away from consumer electronics,” said Divya Ahluwalia, director of brand development at Oracle Added Value. “Brands live and evolve and all elements of branding need to be current, relevant and congruent with the strategy the brand is pursuing.”

Last April, Philips spun off its television business to Hong-Kong based LCD screen and computer maker TPV Technology. The Philips television division was posting losses in 2011 owing to competition from Asian manufacturers.

Related Articles

Just Published

8 hours ago

Creative Minds: Cheil’s Jaeyun Jung on her ...

The art director at Cheil Worldwide waxes lyrical about a 2021 Samsung campaign, the importance of exercise, and Bojack Horseman.

11 hours ago

Li’l Deets and Jackpot drop hip-hop knowledge in ...

Your friendly neighbourhood hip-hop connoisseurs charm audiences in new Rollin Car Insurance campaign.

12 hours ago

Asia-Pacific Power List 2022: Matt Che, Budweiser

Che upholds the culture, diversity and inclusivity of brands within the company by using authentic creative messaging.