Philips adopts OEM route for peripherals

Philips has clarified that it will initially ship its keyboards and mice, and soon-to-be launched optical storage devices to the OEMs, and not end-users as it had decided earlier. It will stick to OEM sales for at least six months informs Sanjay Maheshwari, Head-Distribution (PCP), Philips India. 

"There has been a change of plan because we thought it was wise enough to first create a brand value in the market," he adds. One of the reasons Philips has made this change in its 'Visibility Philips' strategy because of the change in the duty structure, which has brought the prices down. This marketing strategy was announced in November 2003 and aimed at assemblers to promote Philips components.

Philips will supply these components to OEMs like Priya who will provide it with its newly-launched PC kits. It will start with the keyboards and mice, which will be followed by optical storage devices in April. Philips has, however, deferred its plans to launch cabinets.

The Mumbai-based MNC major is mainly known for its LCD monitors in India. Therefore this is the first time Philips will be getting into a new product segment. Earlier, the reason given by Maheshwari to venture into this segment was to target the large assembler market, especially in small towns, as markets in metros had stagnated. 

NANCY SUDHEER

MUMBAI (CyberMedia News)