Atlanta – Funai Electric entered into a distribution agreement with Royal Philips Electronics to take over sales and marketing of Philips home audio, accessories, and portable audio and video in the United States and Canada.
Sales and marketing will be handled beginning Sept. 1 by Atlanta-based P&F, the Funai affiliate that already markets Philips-brand TVs, Blu-ray players and HTiB systems in North America. P&F will be the sole distributor for Philips audio and accessories products, including headphones, docking speakers, portable audio and video, and other accessories.
Because the agreement is a distribution agreement instead of a licensing deal, Philips will continue to manufacture the products, a Philips spokesperson told TWICE. “ P&F will work directly with the teams in Hong Kong and Amsterdam to choose the right product mix for North America and will handle all marketing, sales and after-care activities for the US and Canada,” she added.
The spokesperson called it “a win-win as Philips will continue to invest in R&D on a global scale, P&F will become one face to retailers on behalf of Philips total CE portfolio in the US and Canada, and consumers will still have access to great Philips brand technology.”
“This new agreement further solidifies Funai's relationship with Philips and is an example of how we can work together to grow the Philips brand in North America," added Tomonori Hayashi, Funai Electric president /CEO. The company described the latest agreement as a “natural progression” of its existing relationship with Philips, claiming the agreement “leverages Philips’ innovation power with Funai’s strong trade relationships.”
Sales and marketing are currently handled by Stamford, Conn.-based Philips Consumer Lifestyle, North America. PCL offices will not move, a spokesperson said, but “some Philips talent will transfer to P&F in Atlanta, which will help to retain some of the institutional knowledge that existed on the Philips side,” the spokesperson said.
P&F’s existing agreement with Philips also covers TV marketing to the hospitality industry.