Meeting the needs of young consumers
Today's younger generations are much more digitally savvy – they are always online and connected, and are constantly seeking the latest technology and integration for the digital world.
The brand spends about 5% of its revenue globally on research and development (R&D), according to Gupta, who added that from the birth of the incandescent light bulb, to the first mass production and sale of light bulbs, to the transition to fluorescent lighting, and then to LEDs, Signify has always been at the forefront of these revolutions.
“We are one of the first brands to introduce connected lighting to Indian consumers. Phillips Hughes “It's the product. The younger generation is very used to smart assistants, mobile and app-operated products. Today, with the Philips Wi-Fi brand or lighting product line-up, we have connectivity options and these power products cater to almost all lighting needs,” Gupta said.
Gupta said the brand has noticed an increasing preference and adoption of connected lighting in India, from basic light bulbs to downlights to decorative lighting with multiple colour options, and believes that connected lighting will become mainstream in the near future.
Keeping the same in mind, Signify launched Nature Connect, a new lighting system designed to improve wellbeing by bringing the benefits of natural light indoors, on June 21, 2024. Gupta said the brand is part of Signify's sustainability and sustainable product lineup.
This product is designed to replicate the sky, sun and natural light seen outdoors during the day in an enclosed indoor environment.
“The products being launched at Nature Connect have three elements – sky, sun and natural light based on technology – and they are highly researched products. Most of us spend our days in offices surrounded by four walls and under artificial lights, but this product brings in the natural light outdoors and mimics it. We expect double digit growth in sales this year and double digit growth in sales by the end of 2024,” he said.
Signify is heavily focused on digital marketing, with a large portion of the company's spend currently going towards it. Gupta said that in the business segment, digital marketing gives them the opportunity to be more targeted to specific audiences, while all of the company's products in the professional space are designed for specific applications.
The brand has products designed for stadiums, street lighting, retail stores, hotels, offices, industry and warehouses, so traditional media is limiting.
“Digital marketing helps in reaching and targeting the right audience directly one-to-one. So, on the professional side, a large part of our spend is leaning towards digital. On the consumer side, we are focusing on e-commerce, which is the fastest growing consumer segment. Advertising budgets are also being directed towards digital advertising. However, Philips and Ecolink brands remain mass-oriented brands in certain segments and hence we are using a judicious mix of traditional media,” he explains.
Signify is also one of the leading brands to have entered the quick commerce space and has received positive feedback from consumers through its flagship q-comm service.
“Lighting is very important to everyone. No one wants to live in a house without lighting. So we see great potential in selling lighting products through quick commerce,” he added.
According to Gupta, Signify does not typically require celebrities to drive brand awareness, but it does favour endorsements by celebrities who share similar values the brand focuses on and reach a similar target group (TG).
He believes that celebrity investments remain crucial and beneficial for brands, as both the brand and the celebrity can mutually benefit through partnership initiatives, where Bollywood actress Sanya Malhotra has been roped in as a brand ambassador.
The company partnered with the actor in 2022. Gupta says seeing her being active on social media, building a good relationship with her fans, posting original content and reaching out to the younger generation, was the moment the brand decided to bring on board a face who could take their proposition forward.
“Philips is a heritage brand and we want it to continue to command the same love, respect and recognition from the younger generation that it has enjoyed from the middle-aged and older generations. I think our partnership with Sanya Malhotra has worked extremely well in this regard,” Gupta said.
He also stressed that influencers play a big role and that the brand has always worked with them.
“For the new technologies that we are introducing in the market, there are a lot of tech influencers with huge followings. Also, in the home décor space, a lot of new influencers are emerging with a large fan base and we are working closely with them. These influencers review our products and give very honest feedback which they share with their audience,” he adds.
