Role of data, new tech for Philips Domestic Appliances

Ms. Ipek Akinci is the Country Manager for Singapore, Malaysia and Emerging Markets, Philips Domestic Appliances speaks with WorldFuture on the importance of data and IoT in the company’s marketing strategy.

This is the part two of the interview. Part one was published last week and here is the link to the article. This version is in question and answer format. In the interview, Ms. Akinci says new technologies will guide the marketing stack of the company from broad audiences to targeted segments.

A recent example can be seen through data collected on the use of our Philips Airfryer across the APAC region.

“We found that 78% of users cooked more often at home with the Philips Airfryer and NutriU-app – an app that provides a variety of healthy recipe ideas to cook using the air fryer,” she says.

How is the use of data and AI adding value to the consumers? And what are the challenges in deploying it?

We foresee the role of AI and automation having a large impact on the future of marketing. The use of data will enable greater precision for brands to predict specific programs targeted at a specific group of audience. These technologies will guide the marketing stack from broad audiences to targeted segments, addressing evolving consumer demands and needs for greater personalization, omnichannel integration and responsiveness, and dynamic engagement between brands and consumers.

Essentially, it is now more important than ever to provide consumers with tailored solutions by providing them what they want and need to empower them to make suitable purchasing decisions.

However, while AI and technology play an important role in understanding consumer behaviour.  As marketers the challenge is how make sense of the data provided and to effectively utilize the solutions / tools on these digital platforms to track, measure, and optimize day-to-day sales to build a more direct and long-term relationship with consumers.

Another challenge is speed. AI needs time to learn and recognize a pattern. The question here will be whether AI will be fast enough to recognize the changes or shifts in customer behaviour to give a meaningful and timely insight. 

How different are the Malaysia, Singapore, Emerging Markets

While there will be subtle differences across the countries, we believe that ultimately in all of them, consumers are looking for innovative products that satisfy their wants and needs. On top of this, they demand full clarity on the products being sold as they do not lack options. All these must be available when they need it and at their fingertips.   

In a study by Google, 57% of respondents said they research before making a purchase to feel confident in what they’re purchasing, and 69% said they research to ensure they get the right product or service they need.

Another similarity we see is that people are upgrading their homes as they accept a more permanent way of hybrid living and working. Searches reflect this adaptation to a more flexible future as people begin taking charge of their own time and space, particularly at home. Specifically, in the domestic appliances sector, consumers have skewed towards two key considerations in the last couple of years – shopping online and shopping for healthy products. 

A recent example can be seen through data collected on the use of our Philips Airfryer across the APAC region. We found that 78% of users cooked more often at home with the Philips Airfryer and NutriU-app – an app that provides a variety of healthy recipe ideas to cook using the air fryer. This reflects on the consumers’ journey on seeking for healthy alternatives to improve their quality of living. 

Are there any new relevant developments in the IoT? 

With an increasing number of smart devices globally, advancements in home automation, and the growing desire to cook at home, the market for smart home appliances is registering healthy growth. Philips Domestic Appliances has come a long way in applying IoT in our products. For example, by providing our consumers with a seamless Smart Kitchen experience, we are changing the way they prepare meals and interact with their devices. Users manage and control their appliances via smartphone, enabling an entirely new cooking experience as they engage with our unique connected solutions and community. 

This enables them to control their appliances anytime and anywhere. Users can turn appliances like air fryers and others on and off, set temperature, cooking time, humidity, and keep the food warm on-the-go. Our Philips Airfryer XXL with Smart Sensing Technology is also able to connect to our NutriU app for healthy meal inspirations. Our air purifiers can also be controlled tracked and controlled with an app. You can monitor the air quality and control your air purifier anytime, anywhere with the Clean Home+ app. So you get alerted when air quality is not right.

Are Malaysians, Singaporeans buying products that come with IoT?

Consumers are used to having access to products with advanced technology which not just adds convenience to their daily lives, but also enables them to feel empowered in their day-to-day activities. We are seeing that in our consumers too.  In recent years, the world has seen an increasing number of connected IoT devices in the world and it is estimated that there will be some 50 billion IoT devices in use around the world by 2030. 

As consumers are accepting hybrid working as permanent practice even as we enter endemic, caring after homes and wanting our living and working space to be equipped with the best solutions to add value to our day-to-day has been essential. Looking at the smart home market in particular, revenue is projected to reach RM1.8 trillion in 2025 in Malaysia itself.

We aim to provide the best products to our consumers which are in line with their needs and demands. Our air purifier, for example, offers the very best in technology in home care solutions to improve clean air delivery and keep pollutants, bacteria and viruses at bay. Ideal companion to have during the lockdown, as we were indoors most of the time, not realising the indoor air can be as bad as outdoor air. Studies show that the air we breathe indoors can be up to 2 to 5 times more polluted than outdoor air and is often compromised by PM2.5 ultrafine particles, allergens, bacteria, harmful gases as well as air humidity. The air purifier senses harmful particles, gases and allergens in real time with a professional grade sensor that detects indoor pollutants. Users are able to monitor the air quality and control your air purifier anytime, anywhere with the Clean Home+ app. 

How did women/mothers play a key role in the decision making process during Ramadan last month?

While both men and women do care for their home somewhat equally, we do believe that a majority of women make the major decisions when it comes to buying household products. Malaysian mothers were definitely our key target audience last month and will continue to be so throughout. In a recent survey by InMobi, it reported that close to one out of four mothers plan to spend more than RM1,000 during Ramadan, and close to half of them (46%) said they will increase online shopping budgets while 39% said they will decrease offline shopping budgets.