Philips to merge consumer units in ‘simplicity’ drive

Royal Philips Electronics is creating a Consumer Lifestyle division in an attempt to simplify its structure, pushing ahead its strategy to apply the “Sense and Simplicity” strapline internally.

The new division will comprise the merged domestic appliances and personal care business (DAP) and consumer electronics. The company is also restructuring its sales organisations into three “clusters”. These will be: Western America and North America; International Sales Organisation; and Greater China, Russia, India, Latin America, Turkey, Ukraine and Poland.

Reiner Jens, currently president of North America, will add Western Europe to his responsibilities, and Yenal Gokyildirim, currently managing director of DAP in Central and Eastern Europe, Middle East and Africa, will be cluster leader for the International Sales group. Elwin de Valk, managing director Philips of DAP and national sales organisation, has been promoted to cluster leader for the Greater China group. They will take over their new roles on January 1.

The managing director of the new Consumer Lifestyle division is to be announced shortly.

Philips says the restructure aims to be “simple and accountable” and will allow quick decision making. It also hopes the new structure will make it more customer-centric and sales driven.

Last week Philips announced sales for the third quarter of 2007 were up 7% to €6.5m (£4.5m). It attributes this to growth in its consumer business and emerging markets.

The “Sense and Simplicity” strapline was introduced in 2004. It replaced its “Let’s make thing better” tagline, which it had been using for a decade.