History of The Name
From the early 1940s, Philco was legally able to prevent Philips from using the name "Philips" on any products marketed in the USA, because the two names were judged to sound similar and that it may cause litigation. As a result, Philips instead used the name Norelco, an acronym for "North American Philips Company." Philips continued to use that name for all their US products until 1974, when Philips purchased The Magnavox Company. Philips then relabeled their US consumer electronics products to the Magnavox name, but retained the Norelco name for their other US products. When Philips bought Philco in 1981, Philips was able to freely use the Philips name for all of their US products, but they chose to retain the Norelco name for personal care appliances, and the Magnavox name for economy-priced consumer electronics.
One reason for retaining the Norelco name for personal care appliances was that a shift to the Philips name could have alienated those US buyers who were reluctant to purchase foreign brands. The market share of Philips, a European company, was very low in the US compared to other countries; with their Norelco and Magnavox brands, they were able to get a larger market share.
Eventually, to improve Philips brand recognition in the USA, Philips began branding their shavers "Philips Norelco" in 2005. The Philips Norelco co-branding will allow for an eventual phase out of the Norelco name in favor of the Philips name.
Read more about this topic: Norelco
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