Philips has clear vision for air purifier R&D in China

Dutch company says it wants to develop products where the markets are

Dutch electronics giant Philips plans to expand its research and development efforts to China, with Shanghai playing a major role in the multinational's global R&D network, especially in the innovation of its air purifier products for cars.

With the severe smog having hit major Chinese cities, Philips saw phenomenal growth in the sales of its car air purifiers, with its products running out of stock several times. In the past five years, the company has witnessed an annual sales growth of about 50 percent for its air purifier products in China.

Now Chinese engineers are playing a key role in the creation of its air purifiers, and the company plans to develop the products where the markets are.

"China is a leading country in many aspects. Ten years ago, a lot of core innovations were developed in Europe. We have turned it around now. We do the core innovations in China," says Albrecht Kraus, mobility accessories business manager for Philips China.

"China in particular is an attractive market for growth. Chinese consumers are more hungry for meaningful innovations with the right quality and the latest technology."

Air purifiers developed in China are exported to Western markets such as the United States and the United Kingdom, and other Asian markets including India.

As the poor air quality in many Chinese cities has become an even more serious problem, the company created car air purifiers that can indicate the air quality index outside and inside the vehicle, as more consumers are well aware of what the index actually means.

China's air purifier market penetration rate is less than 2 percent, which is far behind the global average. The figure is 40 percent in Europe and the US, 70 percent in South Korea, and 27 percent in Japan, according to China Market Monitor, a leading household appliances market research agency.

By 2020, the market scale of air purifiers in China is expected to reach 150 billion yuan ($22.8 billion; 21 billion euros), with significant market growth potential.

"Many Chinese are not aware that even when the AQI is 80 we still need air purifiers," Kraus says.

Philips has also released innovative technology to integrate car air purifiers with a smartphone app. With the preprogrammed app, consumers can easily control their air purifiers before they get in their cars.

Meanwhile, the comany has also unveiled its new vehicle headlight products with the latest LED technology.

China has about 170 million private cars, and about one-third of the vehicles in China have Philips products. The replacement rate for these headlights has reached 30 million annually, the company says.

"The trend in automotive lighting will be a transition toward LED lighting and no decrease in their light over their lifespan, in addition to no maintenance, a better beam and better vision," says Jean-Paul Jacobs, general manager of mobility at Philips China.

Philips' latest LED headlight, which is 150 percent brighter than the traditional standard halogen light, has a white beam that the company says is not dazzling yet is forecast to become the brightest LED headlight in the automotive aftermarket.

zhuwenqian@chinadaily.com.cn