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Philips India banks on price cuts to get growth in 2004
By siliconindia
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Wednesday, 14 April 2004, 19:30 IST
GURGAON: Philips India plans to offer its consumer electronics product range at prices lower than those prevailing in the market for competing brands in an effort to achieve double digit growth this year.
While the consumer electronics segment witnesses eight-10 per cent price erosion every year, Philips plans to offer up to 12 per cent lower prices.
The company, which claims its consumer electronics business staged a turnaround late last year after it offered "value-for-money" propositions on most electronic products, plans to extend price discounts into 2004.
"We will continue to follow a two-pronged strategy in 2004. Along with price corrections we will continue to offer two distinct segments of CE products - the Vardaan brand for semi-urban and rural markets and the Philips brand for up-market consumers," its business head televisions (consumer electronics) Suresh Sukumaran told PTI.
Admitting that price discounts did impact the company's margins, he said Philips was depending on economies of scale to bridge this gap.
He said the company was expected to declare double-digit growth for consumer electronics products in the first quarter of 2004 and hopes to continue with this growth momentum in the next quarter as well.