Philips is set to provide a huge boost to independent retailers with the vendor unveiling a radical retail strategy that promises to put specialists at the forefront of its consumer electronics business.
The move will see the firm move away from its strategy of focusing on mass-merchandisers towards specialist retailers in an attempt to reposition itself as "the best brand in the television sector, rather than the biggest".
The new approach will see the vendor place substantial investment into the independent channel, with the firm placing emphasis on training and in-store merchandising. It will also back up the repositioning with a major sponsorship deal with the Williams F1 team.
Speaking to ERT, marketing director of consumer television at Philips, Paul Hobden said: "We will no longer focus on market share, but instead we will be taking a tailored store-on-store approach with specific core retail partners. We will be looking at creating some value in a competitive environment.
"We will be more explicit in what we require, in terms of driving some value back into the market, and will not deviate from this strategy in the next three years. It's been signed off by the Philips board of management. The volume game is finished for us. We're taking a different approach to both retailers and consumers – it's a more tailored, sheltered approach."
However, Hobden admitted the firm's previous record in dealing with independents had not been its strength: "There's been an element of inconsistency in our story to the independent channel – we need to give tangible evidence to show how we are going to drive some value into the market."