The CEOs of multinational companies have received a lot of interviews from this newspaper, but it is still rare to know what brand of recording equipment is used by journalists.
In a conference room of the Four Seasons Hotel interviewed, Philips Global CEO Gerard Kleisterlee noticed that the MP3 used for recording in the reporter's hands was not a Philips brand, but immediately said to the newly appointed CEO of Greater China, Kong Xianghui: If you can Let the people present choose Philips equipment, which will be a good start for your work.
Dutch engineers who have been tough and handsome in this year have once turned a drowsy, mediocre European electronics company into a global business that can bring sustained high profit returns to investors and dominate the US and Asian companies. Multinational giants. The secret of Ke Cilei is to change the business of Philips from a grocery store to a specialty store. Today, he decided to transform again and reorganize the diverse business structure.
We need to fully interact with consumers and understand their needs. In an interview, Ke Cilei said.
Do you want to do it?
As the fourth largest market for Philips in the world, China is undoubtedly important for another transformation plan of Ke Cilei. Ke Cilei carefully selected Kong Xianghui, who has been in Motorola for 27 years, to take over as CEO of Philips Greater China. It must also measure Kong Xianghui's work experience in Shanghai, Beijing and Taipei for about 10 years.
At the inauguration ceremony held by Philips for Kong Xianghui, Ke Cilei enthusiastically talked about the achievements of China's 30 years of reform and opening up from the Beijing Olympics and linked the reform process with the development of Philips in China.
Philips has been in the Chinese market for 23 years. So far, it has invested more than US$4 billion in China, with operations in more than 600 cities across the country and more than 15,000 employees.
However, Philips' ingenuity and foresight to the Chinese market are not innate. In 2006, a domestic financial magazine revealed a detail. The former CEO of Greater China, Zhang?h, went to the headquarters for the first time in 2002, and the board members were careless about China.
Ke Cilei, who has worked in Greater China for three years, said to Zhang?h: It is now in the Netherlands to talk about China, and the shock is different. Do you want to consider going to China to talk about China? In this way, it was the first time that Philips' global board of directors was held outside Amsterdam in the Netherlands in 2003. Zhang arranged for them to meet government officials, partners and local Chinese counterparts. After the end of the event, everyone’s expressions are different. They talk about how to do it instead of doing it.
After years of development, Philips has gained a high reputation in China, even surpassing the United States. According to research data, Philips' popularity in China is as high as that of the brand's hometown of the Netherlands.
However, one fact that cannot be ignored is that Philips' products are not the first to be seen in the eyes of ordinary consumers. Many people only know Philips' razors, but consumer electronics products are not as impressive as Sony and Samsung brands. But in fact, according to the 2007 International Patent Application Data published by the World Intellectual Property Organization, Philips ranks second in the world in the number of patent applications filed by individual companies.
A brand has a lot of room for development from enjoying a high reputation to being the preferred brand for consumers. Kong Xianghui faced this challenge.
With many years of experience working in China, Kong Xianghui noted that compared with five or six years ago, Chinese consumers' consumption concept is more mature. Many years ago they only needed products to use them, and then they needed good products to make them feel identity. Now Chinese consumers have high requirements for quality and cost performance, and pay attention to whether product design can bring emotional resonance, and the brand awareness is also very high, and they are willing to pay high prices to buy brand-name products. Therefore, it may be that many companies were sales-oriented companies five years ago. The only concern is to establish product channels. Now it is not enough to establish product channels.
He told reporters that his very important job after taking office is brand building. He hopes that the Philips brand can establish a strong emotional bond with consumers.
From grocery store to specialty store
Ke Cilei is the soul of Philips, who spent his entire career here. His greatest contribution to this old company with more than 100 years of history may not be the dedication from the bottom to the top leader, from medical to component positions, but his big sale at the beginning of this century.
In the era of crazy mergers, selling one or two businesses is no big deal for a CEO. But Ke Cilei sold Philips' second-largest profit-making semiconductor in the summer of 2006, and his father spent decades in this department, and he himself described it as the company's core business.
Founded in 1891 in Eindhoven, The Netherlands, the Philips Group was originally a light bulb manufacturer, and later expanded from familiar bulbs and razors to lesser-known products such as defibrillators and MRIs. For a while, I even got involved in music. No wonder someone asked: What is it doing?
In 1974, he was fluent in Dutch, German and English. He also graduated from the University of Eindhoven in the French language. He followed the father who was the leader of the early semiconductor factory and entered Philips. He has since gone through medical, professional audio, components and other departments. Later, Ke Cilei became the chief operating officer in 2000 and became the global CEO in the spring of 2001.
At this time, the IT bubble burst, and Ke Cilei caught up with a wave of deficits. In an interview with Fortune magazine in 2007, Ke Cilei said: All the energy in the past years has been on the desk to deal with the biggest loss in the company's history.
Philips' share price fell from nearly $60 in 2001 to $13 in 2002, and semiconductor business sales fell by 30% in two years. When the technology stocks recovered in 2003 and 2004, Philips' semiconductor division also rebounded, but Ke Cilei decided to shift its investment focus to more stable and predictable business, such as specialized lighting and complex medical equipment, including nuclear magnetic resonance and CT scanners, these businesses have a profit margin of over 12%.
In the 1990s, despite some business divestiture, Philips was still a company that produced a variety of products, high wages, and large production bases in Europe. We were already stretched in the late 1990s. Ke Cilei said that the rules of the game are changing and the era of diversified business integration has passed.
Philips obviously wants to be arrogant, in addition to selling semiconductor business, as well as component business. Although Ke Cilei spent many years operating Philips' component business in Asia, he said that he was not particularly attached when the spin-off time came. I have sold a lot of the business I run, including the professional audio I first operated. Ke Cilei said without emotion.
In addition, Ke Cilei continued to close the factory and moved manufacturing departments such as lighting with good profitability to lower cost places such as Poland, Mexico and China. Ten years ago, Philips had 110 light bulbs and other lighting products factories. By 2007, there were less than 70. More than half of the employees in the low-wage market were also outsourcing the production of TV sets, CD players and components.
It is such a slimming plan that revitalizes the old-fashioned Philips, and its performance and stock price are steadily rising.
Looking for Taoyuan in economic turmoil
Since the beginning of this year, Philips has identified three major business areas: medical warship lighting and quality of life. Ke Cilei explained to the reporter in detail that these three business areas are mutually reinforcing.
While continuing to slim down and doing subtraction, Philips has not forgotten to expand in the core three business areas, with the most significant medical aspect. Previously, Philips spent nearly $1.3 billion to acquire Intermagnetics, a US manufacturer of MRI, and later acquired the Brazilian health care company Dixtal Biomdica eTecnologia, China's Shenzhen Jinkewei and Brazil's VMI Avis Medicos. The most recent shot was the acquisition of Alpha X-Ray Technologies in India in September.
According to some materials, since December 2005, Philips has made more than 20 acquisitions of large and small, and invested more than 10 billion euros.
Kong Xianghui also said that Philips China has been paying close attention to some business areas. Acquisitions and mergers are one of the important strategic measures to achieve its development goals. There will be some related announcements in the future.
Between one minus one plus, Ke Cilei led Philips through the bursting of the high-tech bubble in 2001 and gained a new life through transformation. Today, another huge bubble is bursting in the global financial market, and the aftermath is constant. Although Philips is not closely related to the financial industry, how can Philips achieve its ambitious transformation plan in the context of increasing global economic recession and tightening consumer demand?
Faced with this problem, Philips believes that he can find Taoyuan. From the IT bubble burst in 2001, Philips has realized that choosing a business that can sustainably provide returns to shareholders is least affected by global economic fluctuations and in line with people's future needs. The company is stable and sustainable. The IT and semiconductor industries are highly volatile and are affected by the macroeconomics of the industry, so they are stripped of their fate.
After structural adjustments in the 1980s and 1990s, trying to find our way out, Ke Cilei once told the media that my goal is to leave the company with a path of stable profit growth.
Ke Cilei said with confidence that health care is one of the industries that are least affected by the cyclical economic development trend, and because of the global population increase and the aging of the population, the demand for health care is increasing and expanding from hospitals. To the family.
As for lighting, of course, if the construction project is reduced, the installation of new lighting systems will also be reduced, but since Philips' lighting business includes consumer and commercial markets, there is also a large-scale product aftermarket replacement market, so the lighting business will not be too The impact of large macroeconomic trends.
Ke Cilei said that in Asia, especially in the Chinese market, economic growth here continues, and new consumers are constantly participating. Although China's export growth has slowed somewhat, the growth of the domestic consumer market will continue. It is believed that the Chinese government will relax macroeconomic regulation and control policies and stimulate domestic demand to offset the impact of the slowdown in the export market.
My point is that Chinese consumers are more important to the global economy than American consumers, and there are very large consumer groups. Ke Cilei said. Perhaps, when Wall Street is stormy and the global economy is overcast, Ke Cilei’s eyes are blue, and the scenery here is so good.
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