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Along with the frequent occurrence of accidents in the home appliance business and the growing demand for domestic lighting and medical markets, Philips seems to have made the choice to abandon home appliances for medical and lighting. Recently, Philips announced the official launch of its medical imaging base in Suzhou, and said that the two new products will be mainly targeted at the Chinese county hospital market and the township hospital market. In the opinion of industry experts, this is a further strategic advancement after Philips' structural adjustment, and continues to deepen the field of medical and lighting, and dilute the small appliance business with frequent accidents.
Compared with the home appliance sector, Philips has a lot of action in the medical and lighting sectors. Last month, Philips signed a 10 million LED light panel cooperation agreement with Shifu in the field of lighting. Earlier, the LED lighting production platform and the green lighting experience center were built in Hainan. Compared with the previous high-end positioning, this time the layout of the medical market, Philips selected low-end medical equipment as an entry point, and then look forward to more extensive coverage of towns and rural areas. In the future, Philips will gradually implement a differentiated service model and enter a stage of rapid growth.
In contrast, the appliance sector that has smashed the TV, AV, multimedia and accessories business has changed from the core business of Philips to the marginal business. According to Hong Shibin, executive chairman of the Marketing Committee of China Household Appliances Business Association, Philips's efforts to deal with small appliance accidents in recent years can be seen that Philips has no longer attached importance to the small appliance business. Based on this situation, coupled with the increasingly fierce competition in the field of small household appliances, the prospects for Philips home appliance business are not optimistic.