Annual Report 2008
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Helping consumers to enjoy a healthy lifestyle

The pursuit of personal well-being is a universal trend – we all want to feel and look our best, and to enjoy a healthy life balance. This trend also represents a significant and fast-growing segment of total global consumer spend.

Our Consumer Lifestyle sector illustrates Philips’ evolution from a technology business to one that improves the quality of people’s lives by focusing on their health and well-being.

Starting from validated consumer insights, and guided by our brand promise of “sense and simplicity”, we offer consumers lifestyle experiences that are enjoyable and fulfilling.

Sleep can play a positive role in consumers’ lifestyles, and in enhancing well-being in particular. “We can all identify with the benefit of a good night’s sleep, but also the ‘feel good’ factor of waking naturally, feeling refreshed,” says Ena Voute, leader of the Beauty & Vita-Light category within Consumer Lifestyle. “We took this as the starting point for developing the Philips Wake-up Light, which is designed to gently wake the body the way nature intended – with light.”

Half an hour before the required wake-up time, the Wake-up Light switches on with a very low level of light intensity, gradually increasing it over the following 30 minutes to simulate the rising sun. A choice of ambient noises – like bird song – can add to the experience, as well as more conventional early morning stimuli, like a conventional alarm or radio.

“Most people will agree that being woken abruptly – especially during winter, when it’s cold and dark outside – is not a pleasant way to come-to in the morning,” notes Ena. “We know that light stimulates the senses, energizing the body and helping in making us feel less lethargic. The Wake-up Light gently prepares the body for waking. As a result, you not only feel refreshed but also more alert.”

Founded on fact

Philips’ own insights have been underpinned by scientific research, which has revealed more about the ‘natural’ clock within us all. “Our ancestors would sleep according to the availability of natural light,” says Ena. “The introduction of artificial light changed that, as people were effectively able to control sunrise and sunset themselves. However, research has made direct links between sleep cycles and other physiological factors, such as our metabolism, blood pressure, cardiovascular system, and the release of stress hormones.”

Before launching the Wake-up Light, Philips applied a rigorous process of consumer validation to underpin the insight behind the product. Consumer testing resulted in extremely positive feedback. “I have more energy and get up without any stress,” wrote one consumer.

Following the success of its first-generation Wake-up Light, Philips introduced a new model in 2008. “Nine out of ten customers who bought our first model said they found it a more pleasant method of waking than traditional alarms on clocks, radios or mobile phones,” says Christophe Melle, Consumer Marketing Director for Vita-Light.

In August 2008, Philips Research presented its new online research environment – SimplicityLabs. This virtual environment allows people worldwide to experiment with new software-based product concepts in the comfort of their own homes. An extension of Philips’ consumer-focused research, SimplicityLabs enables Philips Research to harness end-user feedback at a very early stage in the innovation process and validate new concepts in a way that is fast, efficient and cost-effective.

This feedback is both explicit (people fill in a questionnaire about the concept) and implicit (the system records how people actually interact with the mock-up or prototype). “Once we’ve gathered and interpreted this data, we can make all the improvements necessary to turn the online product concept into a real, consumer-focused product that, we expect, people will love,” says Fred Boekhorst, Senior Vice-President Philips Research and Program Manager Lifestyle.

The next step in 'experience' research

Like Philips Research’s ExperienceLab, SimplicityLabs places the consumer at the very heart of the innovation process. “In the longer term, we expect SimplicityLabs will make a significant contribution to steering our innovation process and to ensuring that products in our portfolio are based on existing, wide-ranging consumer needs,” says Boekhorst.

Our conscious decision to make people’s needs the starting point for everything we do is clearly resonating with consumers, as evidenced by the fact that – supported by our Healthy living initiative – we sold our one millionth whole-fruit juicer in 2008.

With this product, we took a fundamental insight – that parents the world over want their children to get all the nutritional goodness they need – and applied our development and design competence to produce an innovative solution that fulfilled this universal aspiration.

Fantastically healthy

There is nothing more delicious and healthy than freshly squeezed juice – it is one of the staples of a healthy breakfast and a great way to enjoy the delicious taste of fruit and vegetables. Drinking juice also cleanses, flushes, alkalizes and revitalizes the body. But juicing can often be messy and ineffective – and rather than an ideal way to get your recommended daily allowance of vital vitamins and minerals, it can become a hassle and a chore.

The Philips Juicer changes this forever. With its powerful motor, this innovative appliance can instantly turn any fruit or vegetable – chopped or whole – into juice, with no pips or unwanted pulp.

This is an interactive electronic version of the Philips Annual Report 2008 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the Philips Annual Report 2008. The printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, US GAAP basis of presentation, use of non-US GAAP information, statutory financial statements and management report, revision and reclassifications and analysis of 2007 compared to 2006.
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