Philips eyes growth potential in personal health products
July 17, 2018 Category China News Round-up, Weekly
Dutch multinational Philips said it is bullish on the growth potential of personal health products in China and will continue to expand its investment in the country, as Chinese consumers increasingly pursue a high quality lifestyle. Philips said it plans to continue to expand its research and development efforts in China, its second-largest market after the United States. Currently, it has a major R&D center in Shanghai, and it has more than 1,000 researchers in the country.
Last year, Philips reported sales of €17.78 billion globally, and its sales in China reached €2.3 billion, according to its annual earnings report. “The R&D in China is not just fundamental things or modifying products designed outside of China, then trying to introduce them to China,” said Egbert van Acht, Executive Vice President and chief business leader for the personal health businesses of Philips. “For many years, we have had a range of dedicated innovations in China that we do not sell in other markets. We are working on artificial intelligence-enabled personal health solutions for products such as oral care, air and sleep innovations, as well as nutrition and mother and child care,” he said. With the introduction of the Healthy China 2030 Blueprint, an action program announced in 2016 and the country’s first national-level medium- to long-term strategic plan for national health and well-being, China has been endeavoring to improve its healthcare services. The initiative forecasts that by 2020, the total scale of healthcare-related sectors in China will exceed CNY8 trillion.
“I see a big shift in the younger generation. They are much more aware of the importance of health. I’m very happy with the Healthy China 2030 national strategy, as it will help to fuel a lot of opportunities,” van Acht said. “China’s gifting culture is also different from other markets. In China, a lot of products we sell are used as gifts. This is not a big trend in the Western market”, said Myles Zhong, President personal health of Philips China, as reported by the China Daily.
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