Philips to move domestic appliances unit to Shanghai

AMSTERDAM: Royal Philips Electronics NV, Europe’s biggest maker of consumer electronics, will move the headquarters of its domestic appliances business to Shanghai early next year to spur revenue growth in China and the region.

“One of the first decisions I took was taking domestic appliances’ leadership to Shanghai,” said Pieter Nota, who two months ago took over as head of the consumer lifestyle unit that makes shavers, televisions and coffeemakers.

“As we see the center of gravity for growth in domestic appliances will be in China and India, it makes sense to have the leadership in China and have a leader from Asia.”

Philips in September set a target for earnings per share to increase at twice the rate of sales until 2015 as the company focuses on more profitable lighting and medical products and faster growing markets including India and Brazil.

The company’s consumer lifestyle unit aims to expand in skincare, domestic appliances and health-related products, segments expected to grow faster than the economy.

“Spending power is set to explode, especially in China,” Nota said at an investor event. Nota, who took over from Andrea Ragnetti, previously held marketing jobs at Beiersdorf AG and Unilever Plc in countries including the UK, Poland and Germany.