Philips Expands Kitchen Appliance Portfolio to Boost Growth
Diversified health and well-being company, Koninklijke Philips N.V. PHG has recently come up with multiple innovative product offerings in a bid to fortify its portfolio of kitchen appliances. The latest products from the Philips home appliances family, including Philips Smoke-less Indoor Grill and Philips MicroJuicer, will be showcased at the International Home and Housewares Show, to be held in Chicago from Mar 5–8.
Meanwhile, Philips’ Consumer Lifestyle segment has been strongly supplementing its growth momentum, primarily fuelled by solid performance of the health & wellness and domestic appliances. The decision to launch new products highlights the company’s strategy to capitalize on its thriving domestic appliances market.
Inside the Headlines
By virtue of its infrared heat technology and unique product design, Philips Smoke-less Grill produces up to 80% less smoke without affecting the taste of grilled food. Priced at $399.00, the Smoke-Less Grill will be available at all Williams-Sonoma Inc. WSM stores.
The latest MicroJuicer from Philips features MicroMasticating technology. It comes with a sieve-free QuickClean and pre-clean function to speed up the cleaning process. Priced at $349.00–$399.00, the juicer will be available in two models – HR1895 and HR1897. While HR1897 will be offered exclusively by Williams-Sonoma, HR1895 will also be sold by other retailers like Amazon.com, Inc. AMZN, and Bed Bath & Beyond Inc. BBBY.
Apart from these, Philips is also showcasing its Avance Collection Airfryer XL, which has been enjoying steady market traction since its launch, driven by its ability to reduce fat content in food, thereby making it instantly popular among health-conscious consumers.
Some of the other innovative offerings by Philips that will be showcased at the International Home and Housewares Show include Saeco GranBaristo Avanti (an automatic espresso machine that can connect to smart devices), Philips Pasta Maker (cooks pasta in less than 15 minutes) and Philips Multicooker (a smart heating cooker that cooks almost anything).
Bottom Line
Philips relentlessly pursues innovation in a bid to differentiate its products and grab a higher market share over its peers. Of late, the company’s male grooming, beauty, garment care, kitchen appliances and oral healthcare products have emerged as strong top-line drivers owing to their surging popularity. Continued positive trends in the Consumer Lifestyle segment is expected to aid Philips’ financials, going forward.
However, according to market research reports, the kitchen appliances market is expected to reach the $253.4 billion mark by 2020, having an approximate compounded annual growth rate of 6.4% in the 2014–2020 period. Mid-single digit growth rate, along with stiff competition from key players including Electrolux, Samsung, Whirlpool and Murphy Richards, could make it challenging for this Zacks Rank #5 (Strong Sell) company to score big, even with its latest product launches.
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