Young consumers value authenticity and sustainability: Nikhil Gupta, Signify

Signify India, previously known as Philips Lighting, was launched in 1891 in the Netherlands. The company entered India over a century ago and is presently enjoying a market share of around 25% in value terms in a lighting solution business whose size in the country is close to Rs 15,000 crore.

In 2018, witnessing a change in its product range and to better fit the changing consumer dynamics, the company rolled out its new identity — Signify. According to the company, the rebranding is aimed at introducing a new corporate look and feel. 

While globally, the brand took a corporate pivot, back home, the brand has been focusing on communicating with the younger generation. Nikhil Gupta, Head of Marketing, Strategy, Govt. Affairs & CSR - Signify, Greater India said that since this demographic requires a more personalized approach, the brand has made a shift in its communication by moving most of its marketing efforts online.

He further dived into the brand's marketing strategy and its journey of maintaining the legacy of Philips Lighting while evolving its brand identity. 

Edited Excerpts:

Can you provide insights into Signify India's marketing strategy, highlighting how it maintains the legacy of Philips Lighting while evolving its brand identity?

Signify is one of the oldest companies existing in lighting in the country. The company was launched in 1891 in Eindhoven, Netherlands. In India, the company has been active for over 100 years and over time, the company has built itself on the principles of leading innovation in the lighting area. 

We have witnessed multiple changes happening in the industry. From the incandescent lights, moving onto CFLs, to LEDs, then came the connected lighting space and now focusing on systems and services. And in our journey as a lighting company, we have been striving to lead in these changing times. 

Similarly, our marketing strategy has also always worked on the bedrock of innovation. The marketing strategy for the company has been about taking these innovations to the masses and niches, both in the consumer and professional spaces. 

What are the key marketing objectives and themes that drive Signify India's campaigns?

As a global company, Signify’s marketing strategy is rooted in the overall ethos of the company — Brighter lives, better world. The key themes that we drive today are largely centred around innovation and sustainability, especially in connected lighting solutions. Today, the end customers are aware of their surroundings and look for companies that are sustainable themselves. Hence, as a company, we aim to promote energy-efficient products and highlight our efforts to reduce environmental impact across our operations.

Hence, most of our efforts around marketing are built around these pillars of sustainability, innovations that matter to our customers, our legacy and quality, and understanding the technology of lighting.

How does Signify India allocate its marketing budget across different mediums, and what are the reasons behind any changes compared to previous years?

Our marketing efforts continue to get reconstituted and repackaged based on what we see as trends in the market. 

Currently, Signify has shifted its marketing budget towards digital media, reflecting broader industry trends. We're seeing more and more allocation in terms of percentages going towards digital media. With the emergence of Gen AI, we believe that digital media will explode even more and it will bring down the cost of creation on digital media, hence becoming more attractive for marketers like us. 

This shift is driven by the increased effectiveness and targeting capabilities of digital media, aligning with our goal of reaching the right audience with the right message. Our B2B marketing strategy 100% virtually relies on digital media. In the consumer space, we have a mix of traditional and consumer media based on the target audience.

But with traditional media stuck on print, radio and TV options, marketers today are getting more enticed by the multiple avenues that digital has to offer. 

What key milestones or strategies has Signify India implemented to transition into a technology-focused company?

At  Signify, our focus on staying at the forefront of technological innovation has been a consistent strategy, ensuring that we remain a leader in the industry. In short, we've not needed to make that effort because our legacy has been that of a technology player. But, we've continued to invest in research and development to drive technological advancements to stay ahead of our competitors. 

Who is Signify India's target audience, and which geographical and demographic markets does the brand primarily focus on?

Sanya Malhotra, our brand ambassador, represents the younger generation for us. We also see her as somebody who's very socially savvy when it comes to social media, and thus, her followers play an important role for us. 

When it comes to connected media, our target audience has expanded to include younger, tech-savvy consumers who are interested in smart home solutions and connected lighting. Our association with Sanya fits with this demographic quite well. 
 
While our traditional focus has been on urban markets, with the advent of e-commerce and the availability of information on the internet and social media we've seen increasing interest and uptake in tier-two and tier-three cities as well. We have also noticed that this consumer base has affordability and purchasing power which is equivalent and sometimes higher than that of an average metro city individual. 

Our goal is to democratise access to connected lighting solutions and bring them to the masses, across geographies. We achieve this through our branded retail presence of more than 300 stores under the Philips branding that is spread across the country. 

What are some key differences you've observed in marketing to this new set of younger audiences compared to previous approaches?

A decade back, before the advent of LED, conventional lighting technologies were extremely rigid and had a set format. This is why the target at that particular point for all lighting companies was largely the homeowner. Now, with the advent of lighting has become digital, controllability has become the new normal. 

Marketing to younger audiences requires a greater emphasis on digital channels and social media engagement. These consumers are highly connected and value authenticity and sustainability. Our marketing approach has shifted to reflect these preferences, focusing on engaging content, influencer partnerships, and highlighting our commitment to sustainability and innovation. Additionally, targeting younger demographics requires a more personalized approach, leveraging data and analytics to tailor messaging and experiences to their specific interests and needs. This is why we've preempted that shift by moving most of our marketing efforts online.

How has the advent of AI transformed Signify India's marketing approach, and what plans does the brand have to incorporate AI into its strategies?

Gen AI is still an evolving technology and not many brands have been able to incorporate that into their strategies. AI presents significant opportunities for enhancing our marketing efforts, particularly in content generation and targeting. While we're still exploring AI's full potential, we've already begun experimenting with AI-generated content for digital channels. As AI technology continues to evolve, we anticipate incorporating it more extensively into our marketing strategies to improve efficiency and effectiveness.

What are Signify India's short-term and long-term marketing goals?

In the short term, our focus is on promoting our latest innovations, particularly in connected lighting, and expanding our reach in key markets. We aim to maintain our position as a leader in the industry while driving the adoption of sustainable lighting solutions. In the long term, we're committed to meeting the evolving needs of consumers, particularly younger generations who prioritize sustainability and technology. Our goal is to continue innovating and delivering products and services that align with these values, ensuring sustained growth and relevance in the market.