What kind of path does Philips Lighting take after changing its name to Signify?

- Mar 22, 2018-

What kind of path does Philips Lighting take after changing its name to Signify?

In the increasingly fierce competition in the lighting market, transformation has become the new normal for companies seeking development. In fact, some keen enterprises have already acted long and are always at the front.


On March 16, Philips Lighting issued an important announcement announcing plans to change the name of the company (Philips Lighting) to Signify, a move that is also an important step in the transformation of Philips Lighting.


Transformation, change, no stranger to Philips lighting. Looking back at the history of Philips Lighting, in every major transformation of the lighting industry, Philips not only has not missed, but is also a leader in the industry revolution with its own innovative technology. In the 21st century, the focus of Philips lighting has shifted from the manufacture of traditional lighting products to the development of connected lighting systems and services in the Internet of Things.


As we all know, on May 27, 2016, after the completion of the two-year spin-off process, Philips Lighting was independently listed on the European stock exchange in Amsterdam. Subsequently, Philips Lighting shouted "Light, beyond sight," the company promised. Since then, Philips Lighting has entered a completely new situation.


Philips Lighting believes: The significance of lighting has long exceeded the light itself. So Philips lighting is no longer a source of light, lamps and other products, but contains a comprehensive solution to the system and services. In order to better implement the transformation strategy, Philips Lighting not only focuses on the application of smart interconnection in the Internet of Things, but also thinks about innovation beyond the traditional product category: integrating the concept of sustainable development into the innovation process, adopting "EcoDesign" Principles; Under the leadership of the circular economy model, we explored and practiced the "Light as A Service" business model, etc. We also cooperated with partners in various fields to promote cross-industry cooperation and continued to promote smart connected lighting systems. Service innovation.


In the process of transitioning to smart, connected lighting, Philips Lighting has achieved remarkable success. Its smart interconnected LED lighting products, systems and services cover homes, offices, businesses, cities and other fields. The data service-based Interact IoT platform, Interact intelligent interconnected lighting system, and disruptive visible light communication (LiFi) luminaires announced during the 2018 Frankfurt Lighting Fair further strengthened the leadership of the IoT era lighting and accelerated the lighting industry The Internet of Things developed. It has to be said that Philips Lighting has played a leading role in the development of energy-saving LED lighting, with smart connected lighting to provide customers with the convenience of operation, passing beyond the value seen. It is understood that Philips Lighting has deployed 29 million smartly connected lighting points worldwide and plans to have networking capabilities for all of its newly produced LED products by 2020.


In addition, in 2016 and 2017, Philips Lighting launched the “Friends of Hue” by releasing Chinese sub-brands, introducing lighting products adapted to Chinese lighting consumption habits, and forming partnerships with leading domestic companies such as Baidu, Handan, and Huawei. ) Partnerships lead the development of smart home and smart home lighting together.


At the same time, Philips Lighting also made substantial progress in its first sustainable development plan after its independent listing announced in September 2016, “Bright Life, a Better World”. The total carbon emissions of Philips Lighting in 2017 decreased by 20% to 325,000 tons of carbon dioxide; at the same time, the share of renewable energy use increased from 67% to 80%.


With the release of the new brand concept, Philips Lighting has also found a brand new opportunity. The new company name "Signify" derives from a new definition of lighting: Light has become an intelligent language that connects and transmits information. LEDinside editors believe that this new name can better meet the "light, beyond sight" concept.


As the world's leading lighting brand, Philips Lighting's every move has attracted attention. This time the industry is paying more attention to the strategic intent of Philips Lighting's rebranding, as well as the strategy and direction of its rebranding.


For this change of name, Eric Rondolat, CEO of Philips Lighting Global, said, “The new company name not only clearly expresses our strategic vision, but also launches a brand new exclusive corporate identity to better unite 32,000 employees worldwide. At the same time, the company's products will continue to use Philips, the world's most trusted lighting brand."


It is noteworthy that this change of name will be initiated when the Royal Philips is no longer a controlling shareholder of the company, and the relevant resolution is scheduled to be voted on at the Philips Lighting Holdings Annual General Meeting held on May 15, 2018, and after the resolution is passed. Update the articles of association. In addition, Philips Lighting's stock trading code will also use "LIGHT".


Philips Lighting has always been committed to welcoming the IoT era and circular economy model through innovation, promoting smart connected lighting and the development of smart cities. However, the renamed Philips Lighting will still help the development of smart cities and strive to lead lighting companies in the Internet of Things era. In the future, with the increasing demand for lighting in the world and the popularity of the circular economy model, Philips Lighting's highly efficient and professional lighting services will also better balance the relationship between customers and environmental resources, and will further help the company realize its “shining life”. , "Better World" plan vision, to achieve carbon neutral operation by 2020, use 100% renewable energy, while achieving 80% of sales from sustainable products, systems and services.


According to the previously published 2017 performance report, Philips Lighting expects the adjusted profit margin before interest, tax, depreciation and amortization to reach a growth of 10% to 10.5% in 2018, in line with the company's medium-term outlook. The company will continue to focus on reducing costs and hopes to save more and profit from the second half of 2018. At the same time, with the steady start of the first quarter, it is expected to achieve a year-on-year sales growth. In addition, due to higher restructuring costs, free cash flow in 2018 will be slightly lower than the 2017 level, but the company will provide stable free cash flow.


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