Royal Philips Electronics NV aims to generate half its sales from emerging markets including India and China, up from the current one-third, an official at its Indian unit said on Tuesday.
Europe's biggest consumer electronics producer has increased its investments in emerging markets by 27 percent in 2009 over 2008, Vivek Sharma, chief marketing officer for the Indian subcontinent, said.
Currently emerging markets contribute about one-third of our revenues, but by 2015 our vision is to take it to 50 percent, Sharma told reporters.
India is a bustling market for us. We are investing a lot in India in terms of marketing, brands and products ... India and China have seen encouraging growth rates in the last six months.
India ranks 16th biggest market in terms of revenue for Philips, which is the world's biggest lighting maker and a top three hospital equipment maker.
Sharma said the greater revenue share from emerging markets including Brazil and Russia would come from increased investment in brands, marketing as well as manpower and products.
Over the last three years we have seen more potential in emerging markets, that is why our board of management has decided to focus on emerging markets ... we do see a lot of potential long term, he added.
The Indian unit is betting on India's expanding retail market. We are first investing in retail, our first priority is to improve the in-store retail experience, then go on to launch new products and then advertise, Sharma added.
The group is expanding the number of showrooms where it displays home lighting products in India to 35 from 15, he said.
Philips in July surprised industry experts with a return to profit in the second quarter, helped by cost cuts, and said some of its key markets are primed for an upturn in sales. (Editing by Tony Munroe and David Holmes)