THE BEACON
When fashion meets technology, sparks—and glitter—fly. For Philips, the collaboration with Swarovski raised more than just eyebrows — the sexy, cool, jewel-studded gizmos, clearly designed in the strategy to set women’s hearts aflutter, put the heat on electronics manufacturers and endow sparkle on the Philips brand.

But this shouldn’t take the industry by surprise. Philips’ legacy of visionary feats in the field of electronics tells the story of a pacesetter with acute foresight and a proven track record earned in the relentless pursuit of pushing the envelope. All in the interest of making quality products exceptional.

And Swarovski is one of the driving forces that will cast Philips, long known to be a market leader in consumer electronics with sales amounting to EUR 27 billion in 2006, in a brand new light as a lifestyle business.


THE LEGACY
The advent of electrical engineering introduced trailblazing individuals like brothers Gerard and Anton Philips, who have made an indelible mark in modern lifestyle when electricity signaled the dawn of a new enterprise in Eindhoven, the Netherlands, in 1891.

Commercialized electricity generated a huge demand for light bulbs. Philips & Co. rose to become one of the major producers of carbon-filament lamps in Europe by the turn of the century, and its brand representation of the time — a single word printed on metal filament lamps — reflected its market position.

In 1898, Anton Philips demonstrated savvy marketing when he used the picture of a girl in native Dutch costume on a set of postcards. Above the show of patriotism was the brand illustrated on individual light bulbs, again reinforcing its status as a leader in modern illumination.

Advancing developments in new lighting technologies fueled the steady expansion of the company. To ramp up product innovation, Philips established a research laboratory in 1914 focused on the study of physical and chemical phenomena.

The investment bore the medical X-ray tube four years later, making Philips’ foray to healthcare. It was a landmark achievement that paved the way for product diversification. Seeing the untapped potential in lighting technologies, Philips quickly undertook protective measures and applied for patents in areas stretching from X-ray radiation to radio reception. Television was one of their first experiments in 1925, with radios following short after, becoming part of their production in 1927.

Within a span of five years, Philips’ radios hit the millionth-mark in sales. The Miniwatt radio valves and the Philigraph (an early sound recording device) were flying off the shelves. On their packaging was the famous shield logo with the familiar waves and stars Philips made their mark with. Making its debut in 1926, the waves symbolized radio waves and the stars represented the evening sky because at the time, families would gather around the radio set in the evening for news and entertainment.

It was only in 1930 that the logo most closely associated with the brand — comprising four stars, three waves and the circle — made its appearance on radios and gramophones. But the company soon had to substitute it with the shield emblem composed of the Philips circle and the wordmark in 1938, to avoid trademark problems with owners of other well-known circular emblems.

As Philips began to establish its corporate identity, they also flexed their innovation muscle with the first Philishave electric razor, equipped with the rotating heads Philips Research invented. Since then, the Philishave has become one of the world’s favorite electric razors, celebrating the production of the 300-millionth Philishave electric shaver in 1995.


Click on the thumbnails to view Philips’ renowned shavers in detail.

The consumer electronics manufacturer, who boasted staff strength of 45,000 employees worldwide by 1939, was on a roll. After the premiere of the compact audio cassette in 1963 and its first integrated circuits in 1965, research in lighting broke new ground in the new PL and SL energy-saving lamps while the key breakthroughs in the processing, storage and transmission of images, sound and data by Philips Research kicked off a new era, pioneering the LaserVision optical disc and optic telecommunication systems that eventually culminated in the compact disc in 1983. Building on the success of the compact disc technologies, Philips — in cooperation with other companies — released the DVD in 1997.


Click on the thumbnails to view the breakthroughs of Philips’ lighting technology in detail.

Meanwhile, Philips continued to make headway in the healthcare field, producing medical X-ray equipment in the United States a few years after its first medical X-ray tube. Tapping the expertise in medical technology and the clinical know-how of their customers put the electronics giant on top of its game. In fact, Philips is considered one of the best in cardiovascular X-ray, digital X-ray and ultrasound, patient monitoring systems, nuclear medicine, cardiology systems and critical care systems.


Click on the thumbnails to view Philips’ expertise in medical equipment in detail.

However, it’s more “heartware” than “hardware” — Philips follows a principle that believes the needs of individual patients should be taken care of without compromising the efficiency, ease and cost-effectiveness of the way healthcare professional work.

THE HEARTWARE
80,000 registered patents is an astounding testimony of the company’s highly innovative nature. Still, intelligent products need sharp brand strategies.

Previously, the approach to advertising and external communications wasn’t as consistent as their corporate logo, in use since 1938. Until the mid-1990s, Philips lacked representation of Philips as a global company. Various campaigns ran simultaneously as advertising and marketing campaigns were carried out at product level on a local market basis. People weren’t getting the message that Philips was the key that would change their lives.

In a move that would bring on total integration, it announced its first global theme in 1995, “Let’s make things better”. The campaign rolled out globally and appeared on Philips products in all markets. Internally, the campaign made its impact on employees too, fostering a sense of belonging.

The 1990s was a decade of significant change for Philips. Armed with the new brand campaign, the company practised what it preached, carrying out a major restructuring program that adopted what appears to be a divide-and-conquer tactic, mirroring the spirit of its global campaign: Philips simplified its business structure and reduced the number of business areas.

Under President/CEO Gerard Kleisterlee’s watch as Chairman of the Board of Management, he introduced Towards One Philips to simplify business structure streamlining 14 product divisions down to 5 product divisions. Today, all businesses are now organized under three sectors—Healthcare, Lighting and Consumer Lifestyle—internalizing the brand positioning “Sense and Sensibility” launched in 2004 to propel Philips into exciting new markets the 21st century has to offer.

People have begun to see it as more than a consumer electronics producer; they saw Philips as part of their lifestyle. In an increasingly technology-driven world, complex operations frustrate consumers. They questioned: “If technology exists to make lives easier and more productive, why is it so often such a hassle?”

Philips jumped at the challenge — and embarked on a journey towards simplicity. Always the agent provocateur, the time has come to rethink and reinvent the business of technology, and project a new image befitting a lifestyle brand.

Like everything Philips does, it doesn’t take much to distil the brand essence. In 2004, Philips renewed and reaffirmed its dedication to put consumer needs above all else by injecting “Sense and Simplicity” into solutions designed specifically for consumers, with consumers. It is a brand experience designed to preserve that element of delight when you first lay eyes on a Philips product.

The statement summed up what Philips stood for—the three pillars are Designed Around You, Easy To Experience and Advanced—and earned consumers’ trust and loyalty in Philips’ clever products.

Consumers were right; access to the meaningful benefits technology is offering should be easy. Simplicity should be the goal of fast-evolving digital technology. Barriers should never be part of the equation. Philips would efficiently bridge the gap by delivering solutions and services that can address current consumer needs in exciting new ways. Philips Design materializes the brand promise “Sense and Simplicity” through a complete human-focused, research-based methodology known as High Design.

Besides engaging consumer research to validate their efforts, the Simplicity Advisory Board gathers experts from the worlds of healthcare, lifestyle and technology to provide an additional external perspective to attain sensible yet simple solutions. With diverse member backgrounds, the think tank-and-sounding board shows Philips insights into what simplicity means for people in all aspects of their lives and in different cultures.

“There’s only one answer to commoditization, and that’s innovation but in adding more features,” remarked Rudy Provoost, chief executive officer of Philips Electronics in an interview with Guardian Unlimited in May 2007.

“Consumer electronics has been too much electronics and not enough consumer. I’m in the consumer experience business. It’s all about offering consumer great experiences, rather than the ‘tech & spec’ game. Philips is a very different company in that sense.”


THE ACTIVE CRYSTALS
“Sense and Simplicity” goes hand-in-hand with beauty and brains. It’s a tricky combination; one that Philips has got the formula down pat, with a fashion powerhouse of a partner that has a long, distinguished history to match.

Designed by women for women, Active Crystals, Philips’ collaborative effort with Swarovski, disconnects the technophobe in the female consumer by engaging high fashion with high tech. Beautiful, practical and efficient —the breathtaking collection of Ceralun™ crystal-encrusted gadgets comprising ear-phones and one-gigabyte USB memory keys is an alliance between the in-house design teams at both Philips and Swarovski. Consumers can secure precious data simply with a user password. The dazzling range of Active Crystals embodies the expertise of the industry leaders and demonstrates that state-of-the-art technology can enhance consumers’ lives with impeccable style and luxury.


Click on the thumbnails to view Philips’ Active Crystals in detail.

“Philips consumer products represent the best in style and design for the consumer electronics space,” explains Daniel Cohen, member of Swarovski’s executive board. “The Philips brand continues to grow in stature, notably in the field of sound and ear-phones where its products are considered among the best in the world.”

“The alliance enables us to enter the market of luxurious and fashionable electronic accessories for women,” adds Provoost. “Our cooperation creates a unique value proposition combining Philips’ leadership in innovation and Swarovski luxury aspiration. These new products will change the way women interact with innovation and technology.”

Provoost is certain there a lifestyle business cannot do without a fashion component. “If you think of it from a consumer point of view, it’s about product design and brand fit — we did a lot of work with Swarovski to understand their brand claim ‘Poetry of Precision’. I now have a chief design officer reporting directly to me, because design is the bridge between invention and innovation. That’s where you differentiate.”

And from the well-conceived union, Philips’ new design-driven business direction in driving global growth is evident. Design starts the product cycle and ends with sales and marketing. Manufacturing, logistics and servicing is now outsourced. The company is investing in innovation centers in the Far East instead to stay ahead of the curve.

Provoost told Guardian Unlimited: “We have a software lab in Bangalore in India, for example, and we’re establishing a centre near Shanghai. We’ve put the emerging markets very high on our agenda, and you have to do that to have a chance to be successful.

“But Philips has been a global player since day one. That’s part of our DNA. But you still need to turn [innovations] into great consumer experiences.”


Click on the thumbnails to view Gerard Kleisterlee, Rudy Provoost and Stefano Marzano in detail.


THE AUREA
At the start of the 20th century, Philips was one of the largest European producers of incandescent lights.

With Aurea, the next generation in Ambilight TV unveiled in October 207, Philips makes a full circle back to its origins. However, the return is not without setting a precedent: Aurea intends to change the experience of television viewing.

Picture quality is no longer the difference-maker when it comes to televisions. Philips should know; it sold produced its 100-millionth TV set in 1984.

If Philips is all about experiential design, Aurea is all about the art of seduction. Banking on its heritage of revolutionary lighting innovation, the sensational Aurea captivates the senses to bring emotions into the world of cutting-edge technology through a living cinematic screen where the spellbinding Ambilight emanates from the back onto the wall. Sophisticated technical wizardry automatically adjusts the color and brightness of the illumination surrounding the TV to match the image. Hailed as “surround sound for the eyes”, intense colors and dynamic light spread beyond the screen, through and around the Active Frame, immersing viewers in the breathtaking atmospheric visual effects in harmony with the screen images. It is another leap forward for intelligent lighting.


Click on the thumbnails to view the Aurea in detail.

The viewing experience is scientifically validated and proven by research. The Lighting Research Center of the Rensselaer Polytechnic Institute in New York confirmed in 2005 that Ambilight inhibits eyestrain and fatigue in comparison to conventional television viewing, while in 2007, The Ludwig-Maximilians-Universität in Munich released results of a study that showed less brain effort in television viewing with Ambilight, translating to higher levels of relaxation that in turn, leads to higher emotional involvement.

Stefano Marzano, CEO and chief creative director of Philips Design, explained one of the most significant challenges for Aurea: “People are ready for unobtrusive technology.”

Said Provoost in a press conference during IFA 2007: “You’ll notice Aurea’s visual language has moved away from a masculine technology box to a smoother, more feminine approach integrated into the home environment.

“With a TV that’s so different and innovative — and so dependent upon the magical effects of light to enhance out emotional responses — it was natural that Philips would create a very different campaign. We’re partnering with masters of seduction by light from the fashion and the movie worlds.”

Top fashion photographer Vincent Peters, famous for his phenomenal spreads in fashion bible Vogue, shot the campaign’s stunning images, christened “Seduction By Light”. International model Rianne Ten Haken wore dresses by House of Lanvin’s Alber Elbaz, while Parisian jewellery designer Lorenz Baumer created the beautiful pieces showcased in the campaign.

On top of that, Philips commissioned renowned Hong Kong film director and 2006 Cannes Film Festival jury president Wong Kar Wai, synonymous with his masterpieces of light and color, to shoot a Film Noir movie in color. Entitled “There Is Only One Sun”, Wong’s artistic imagery made an exclusive premiere in Singapore in October and will be shown wherever there’s an Aurea.


THE EXTENSION
Philips ushered in 2008 with a big bang. Fresh from its success with the Aurea, it unveiled the future of home entertainment, Philips’ Design Collection, at the Consumer Electronics Show (CES) 2008 on 6 January.

With Philips’ magic touch, the ubiquitous electronic devices—entertainment cloaked in boxes among the furniture — are now signature pieces in defining individual style and personal space.

The new family of products completes the state-of-the-art home entertainment range with a design signature that is consistently iconic and continues to awe the emotions in the way they look, behave and interact.

Already, the products with personality have added another feather to Philips crowded cap—the new Design Collection recently received its first accolade as a winner of the 2008 CEA Innovations Award for Design and Engineering. Its new 52-inch Ultimate Dream TV (52PFL7603D) won the award for its amazing style and impressive array of innovative video technologies.


THE LEAP
“It is no coincidence that Philips was voted 38th place in Business Week’s Most Innovative Company ranking in 2007 — up from 67th place in 2006. We also rose six places to number 42 in the latest Interbrand rankings,” said Provoost with pride.

Philips’ leap of faith has been rewarding. In 2007, Philips Design won the prestigious red dot: Best of The Best for Fashion for Skin, a collection of dynamic garments that demonstrate the incorporation of electronics into fabrics and garments to express the emotions and personality of the wearer. In Asia, Philips Singapore Learning Centre was recognized with the President’s Design Award by transforming a usually “passive sit-back training location” into a “lean-forward engaging environment”.


Click on the thumbnails to view Breitner Center, the High-Tech Campus and the Innovation Campus in detail.

Presently in full-throttle engagement in creating and capturing new market spaces, it has drawn up a strategy, Vision 2010, to meet the needs of the Philips customer, while driving up shareholder value by taking on an integrated approach to consumer lifestyle. It plans to evolve the brand positioning as a market-driven people-centric global leader in its fields.

The Philips name in its signature uniform of seven blue capital letters is a world-recognized logo and a nerve center that has shaped how consumers live, work, and play today by delving straight into the consumer psyche.

Others in the field of technology may claim to set the rules but Philips plays by the rules; the rules set by the global consumer it is hard-wired to serve.


© 2003 - 2008 by TAXI Design Network. All rights reserved.