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Pieter Nota, chief executive officer of Philips Consumer Lifestyle, is introducing Philips' business in China at a media roundtable meeting.[photo provided to chinadaily.com.cn]

SHANGHAI -- Philips Consumer Lifestyle (CL) is expected to see a double-digit sales growth rate in the Chinese market in the next two years, Pieter Nota, member of Board of Management of Philips Royal Electronics, said on Thursday.

Nota, also chief executive officer of Philips CL, didn't disclose the specific rate nor give details of how much will be invested in the Chinese market for it.

Philips CL reached global sales of 5.8 billion euros last year, 40 percent of which came from the emerging markets including China, Russia, India and Brazil.

"Among the four, China is a country that created more sales which will grow fast in the next several years," he said.

Philips CL took five percent from the sales as funds for R&D to develop more new products for local markets, making it become a leader in the Chinese market in 15 kinds of products such as shavers, dry floor care, blenders, air cleaners and home cinema sound, Nota said.

"Our strategy is to target our products not only at the coastal cities in China but its second- and third-tier cities," he said, adding that the company is making great effort to enlarge its sales channels in those cities.

Philips CL plans to establish 590 service centers and 8,500 sales outlets in China by the end of 2011, Nota said.

"To reach the objective, we will bring new technologies and expertise to China to develop products for local consumers," he said.

It has relocated its global headquarters of kitchen appliances from the Netherlands into Shanghai, with three regional headquarters in Brazil, Europe and India respectively.

"Doing so aims to make China a global home in kitchen appliances in the wake of those in the Netherlands and the United States,"  Nota said.

Philips has set up an innovation center for kitchen appliance in China to develop products for the markets in China as well as the world.

Philips has acquired Povos Electric Appliance (Shanghai) Co Ltd to grow kitchen appliance business, "which has been considered as an important part of its expansion strategy for the Chinese market,"  he said.

" With the acquisition of Povos, Philips can significantly expand its product portfolio in China and build on its ability to set the pace of innovation in the global kitchen appliances market," said Patrick Kung, executive vice-president and chairman of Philips China.

His words were echoed by Nota, who said " we will further invest in China for expansion and if we find opportunities, we will buy local companies to increase production."