By Kim Yoo-chul
Korea Times Correspondent
MAJORCA, Spain ― Royal Philips Electronics (Philips) has clarified its intention to stick with the liquid crystal display (LCD) TV business in the European market. Bigger rivals such as Samsung Electronics and Sony hope to narrow the market gap here with distinctive strategies.
The Dutch-based consumer electronics giant recently dropped its LCD TV business from North America as a steep drop in prices of TVs by its bigger competitors caused the company to lose its price edge against Samsung, Sony and even in the low end ― with commodity brands like Vizio and Westinghouse ― in the world's biggest consumer electronics market.
``We will solidify leadership in our traditional European LCD market by fueling more that we had saved from North America,'' Hans-Joachim Kamp, chief executive of Philips Consumer Lifestyle told The Korea Times, Sunday. He was attending the ``Internationale Funkausstellung (IFA) 2008 International Press Conference'' here from April 18 to 20.
IFA is one of the largest consumer electronics trade fairs in the world. The annual show will be held in Berlin, Germany from Aug. 29 to Sept. 3 with an estimated 1,300 companies from 34 countries attending.
Speculations had been high that Philips might shift its core strategy to bio-, lightening- and environment-friendly businesses even in Europe after it ceased all TV sourcing, distribution, marketing and sales activities in North America and transferred all such rights to Funai.
The remarks came less than a month after Philips' North American chief executive, Paul Zeven emphasized the company will focus on more stable markets.
``South Korea's LG Display could maintain a `healthy partnership' with our company because we plan to strengthen our TV business in Europe,'' another Philips official said, adding his company will commercialize LCD TVs with light-emitting diode backlights in the latter half of this year.
Premium Strategy: Samsung
Samsung Electronics, the world's No.1 manufacturer of LCD TV sets, plans to put more focus on selling premium TV sets in a bid to surge ahead of Philips within the next two or three years.
``The brand recognition of Samsung's LCD TVs exceeded over 50 percent in European key markets including Germany, Britain and Italy due to strong distribution channels,'' Michael Kurpiers, senior manager of Samsung Electronics' German affiliate, told the paper, adding this year's strategic ``Pavv Bordeaux 650,'' which has applied the ``Crystal Rose'' design, will be commercialized this week.
``As far as I know, Sony is not considering cutting prices of its crystal sets in Europe, unlike in North America and China. However, we are closely watching Sony's possible next moves,'' he added.
According to estimates by GfK, a market research firm, the size of the flat-screen TV market in Europe is expected to reach 24.6 billion euros this year from 10.9 billion euros in 2007, while TVs with 30- and 40-inch levels will account for 62 percent of the total.
Massive Promotion: Sony
Sony has been known to compete in the European market by releasing a series of new products and installing a bigger booth at this year's IFA show.
``The size of Sony's booth will reach 6,000 square meters out of 30,000 square meters in total, while that of Samsung Electronics and LG Electronics will be installed within 4,000 square meters and 2,000 square meters, respectively,'' Christian Goke, chief operating officer of Messe Berlin, an organizer of the trade fair, said.
On a question over specific details of Sony, the official declined to elaborate by saying ``We have engaged in talks with the Japanese company.''
Such comments are in line with Sony's ongoing strategy of selling latest sets with attractive prices from North America to China for the revival of its past glory.
Experts say the ``LCD TV War'' is expected to heat up in the European market and shy away from North America as manufacturers are betting that increasing appearance of the sets in households will lay the ground for one of the world's biggest consumer electronics markets, along with China.
``Supply chain management is the key for a bigger presence here, because the European market is decentralized,'' the official said, adding that Sharp was struggling in the region because its insufficient marketing manpower makes it difficult to deal with major retail chains.
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Korea Times Correspondent
MAJORCA, Spain ― Royal Philips Electronics (Philips) has clarified its intention to stick with the liquid crystal display (LCD) TV business in the European market. Bigger rivals such as Samsung Electronics and Sony hope to narrow the market gap here with distinctive strategies.
The Dutch-based consumer electronics giant recently dropped its LCD TV business from North America as a steep drop in prices of TVs by its bigger competitors caused the company to lose its price edge against Samsung, Sony and even in the low end ― with commodity brands like Vizio and Westinghouse ― in the world's biggest consumer electronics market.
``We will solidify leadership in our traditional European LCD market by fueling more that we had saved from North America,'' Hans-Joachim Kamp, chief executive of Philips Consumer Lifestyle told The Korea Times, Sunday. He was attending the ``Internationale Funkausstellung (IFA) 2008 International Press Conference'' here from April 18 to 20.
IFA is one of the largest consumer electronics trade fairs in the world. The annual show will be held in Berlin, Germany from Aug. 29 to Sept. 3 with an estimated 1,300 companies from 34 countries attending.
Speculations had been high that Philips might shift its core strategy to bio-, lightening- and environment-friendly businesses even in Europe after it ceased all TV sourcing, distribution, marketing and sales activities in North America and transferred all such rights to Funai.
The remarks came less than a month after Philips' North American chief executive, Paul Zeven emphasized the company will focus on more stable markets.
``South Korea's LG Display could maintain a `healthy partnership' with our company because we plan to strengthen our TV business in Europe,'' another Philips official said, adding his company will commercialize LCD TVs with light-emitting diode backlights in the latter half of this year.
Premium Strategy: Samsung
Samsung Electronics, the world's No.1 manufacturer of LCD TV sets, plans to put more focus on selling premium TV sets in a bid to surge ahead of Philips within the next two or three years.
``The brand recognition of Samsung's LCD TVs exceeded over 50 percent in European key markets including Germany, Britain and Italy due to strong distribution channels,'' Michael Kurpiers, senior manager of Samsung Electronics' German affiliate, told the paper, adding this year's strategic ``Pavv Bordeaux 650,'' which has applied the ``Crystal Rose'' design, will be commercialized this week.
``As far as I know, Sony is not considering cutting prices of its crystal sets in Europe, unlike in North America and China. However, we are closely watching Sony's possible next moves,'' he added.
According to estimates by GfK, a market research firm, the size of the flat-screen TV market in Europe is expected to reach 24.6 billion euros this year from 10.9 billion euros in 2007, while TVs with 30- and 40-inch levels will account for 62 percent of the total.
Massive Promotion: Sony
Sony has been known to compete in the European market by releasing a series of new products and installing a bigger booth at this year's IFA show.
``The size of Sony's booth will reach 6,000 square meters out of 30,000 square meters in total, while that of Samsung Electronics and LG Electronics will be installed within 4,000 square meters and 2,000 square meters, respectively,'' Christian Goke, chief operating officer of Messe Berlin, an organizer of the trade fair, said.
On a question over specific details of Sony, the official declined to elaborate by saying ``We have engaged in talks with the Japanese company.''
Such comments are in line with Sony's ongoing strategy of selling latest sets with attractive prices from North America to China for the revival of its past glory.
Experts say the ``LCD TV War'' is expected to heat up in the European market and shy away from North America as manufacturers are betting that increasing appearance of the sets in households will lay the ground for one of the world's biggest consumer electronics markets, along with China.
``Supply chain management is the key for a bigger presence here, because the European market is decentralized,'' the official said, adding that Sharp was struggling in the region because its insufficient marketing manpower makes it difficult to deal with major retail chains.
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