Philips Launches Primary Care Solutions for its Value Segment Strategy

CHENGDU, China, Oct. 18, 2012 /PRNewswire/ -- Philips launches “Primary Care Solutions” with the focus of “Bringing Health to the Public” at the 2012 China International Medical Equipment Fair, signaling the start of implementing its value segment business strategy in the China market.

Improving standards and quality in primary care has been one of the priorities in the second phase of China’s healthcare reform. To ensure successful value segment business in China, Philips set up a cross-functional and cross-disciplinary value segment business team a long time ago to integrate internal resources so that Philips Healthcare can be armed for the Chinese market with functions of R&D, manufacturing, sales, marketing and talent development and can create an end-to-end value chain inside the company and an operation system for the segment. Established by Philips in 2009, the medical imaging system in Suzhou will soon go into production, which will provide localized R&D and production support to the value segment business in China.

“In the past three years, China has witnessed rapid development of its primary healthcare system. There is an industry-wide consensus that primary healthcare should play a bigger role in the whole healthcare system, and this development trend is really exciting to us. Now the value segment business has become an important part of Philips' global business strategy, and we are extremely honored to participate in such an initiative. At the same time, we will proactively use our strength and experience obtained in the high-end market to serve the value segment of the market,” said Mr. Desmond Thio, President of Philips Healthcare Greater China.

As a leader in the healthcare industry, Philips is well known around the world for its innovative capabilities and cutting-edge technologies. With the growing importance of the Chinese market, Philips defined China as “another home market” in September, 2010 and scaled up localization of R&D and manufacturing capabilities. Now all the strengths built up over these years will ensure Philips’ Value Segment business growth in the Chinese healthcare market. Apart from the strong R&D and manufacturing support from the imaging system based in Suzhou, Philips Research Asia, which has centered its activities on China for a decade, will continue to develop customized solutions based on its insights into local needs. As Philips training center, Philips China Healthcare Academy will come into use soon providing space and equipment for training and the education of doctors from primary healthcare institutions. As an important development channel for the value segment business, Shenzhen Goldway Industrial of Philips will also use its local strengths to deeply penetrate this segment under the holistic strategic framework of the group.

As a result of extensive and intensive research of the local market and prudent strategic analysis, Philips Primary Care Solutions are aimed to build a complete “primary care value chain” to meet the diverse needs of primary healthcare institutions at different development stages, including:

  • Suitable products — based on Philips’ existing advanced technologies, with necessary localization to provide products that are compatible with customer needs.
  • Financing solutions — low-cost financing solutions provided to primary healthcare institutions to solve their budgetary constraints.
  • Responsive services — low-cost, extensive and responsive services for customers.
  • Training — intensive and extensive training will effectively improve professional skills of doctors in primary healthcare institutions.
  • Clinical informatics platform — leverage clinical informatics solution to share and communicate medical information among primary healthcare institutions, which ultimately reduce medical costs, improve patient outcomes and workflow efficiency.

“China is a vast, densely populated country with huge geographical difference, and the success of the value segment business will be highly dependent on whether design at the top can be effectively implemented. Philips Healthcare has equipped the value segment business with a completely localized team. The value segment business will be a sure success, guaranteed by our effective execution, closeness to market, as well as Philips sophisticated technologies and innovative capabilities," said Mr. Zeng Jinchuan, Vice President and Head of Value Segment Business of Philips Healthcare Greater China. The challenge to explore value segment business in China includes the huge number of primary healthcare institutions spread across the vast land as well as skill gap in medical service delivery.

In addition to the core value segment products, Philips also showed the “Digital, MultiTransmit, Intelligent” MR family and released a number of technologically leading products at CMEF 2012, such as MX 800 monitor and Ingenuity CT, which are all technological innovations that will lead the healthcare future.

About Royal Philips Electronics

Royal Philips Electronics (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2011 sales of EUR 22.6 billion and employs approximately 122,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at

Source: Philips (China) Investment Co., Ltd