To prioritise retail customer relationships.
Royal Philips is changing its go-to-market strategy in Australia and New Zealand by moving the distribution of the majority of its consumer product portfolio in-house in Australia and consolidating it into one master distributor in New Zealand.
From June 1, 2017, Philips will commence managing the Australian sales and distribution in-house of its oral healthcare (Philips Sonicare), male grooming, beauty and garment care categories, alongside its existing in-house sales and distribution of kitchen appliance, haircare, coffee (Philips Saeco), air treatment and floor care categories.
This change will see an end to the distribution partnership with Breville in ANZ and a move to a focused, specialist distribution partnership with BPM for its Mother and Childcare (Philips Avent) portfolio in Australia.
Caption: Philips Personal Health Australia and New Zealand general manager, Chris Kerr
In addition, the company will consolidate its distribution partners in New Zealand into one master distributor.
Philips Personal Health Australia and New Zealand general manager, Chris Kerr said that a number of factors make this the right time for Philips to centralise its go-to-market strategy. Most notably, the changing retail landscape and importance of Philips’ relationships with retail partners.
“Breville and BPM have been long-term, outstanding distribution partners of Philips in Australia and New Zealand, and we greatly value and thank them for the contribution they have made to the business to date,” Kerr said.
“With the changing retail landscape, it is necessary for us to prioritise our relationships with our customers. Following feedback to this effect and a review of this area of operations, it seemed the right time to focus our efforts on simplifying our distribution and bringing it in-house. In that way it will allow us to operate in the most productive and efficient manner for the benefit of our retail customers and our business, as well as enabling us to present in a unified way,” he continued.
Breville ANZ general manager, Mark O’Kelly said that as Breville continues to align behind its new strategy and put all its efforts into the execution of Breville’s core global and ANZ regional business, it was the right time for both parties to make this change.
“The Philips and Breville teams should be proud of the business they have grown together in the male grooming, beauty and garment care categories. We believe Philips has a compelling offering for Australian and New Zealand consumers, and we wish Philips the best of luck as they continue to deliver and support the ANZ consumer in the years to come.”
BPM ANZ managing director, Dean Osmond said, “I wish to thank Philips Australia and New Zealand for the opportunity for BPM to manage the Philips Sonicare products. Over the last five years, BPM and Philips have taken the Sonicare brand to a strong market position. I trust that Philips’ new structure will continue to focus on the relationships developed with retailers.”
Retailers who may have questions about the transition of sales and distribution are asked to direct all enquiries to their Philips key account manager.