Through profitable growth, innovative products, operational excellence and dedicated employees, Electrolux creates the conditions to reach its vision to become the best appliance company in the world.Read more
The Electrolux process for consumer-driven product development ensures that innovative products that will be preferred by more consumers.
As the only appliance manufacturer in the world to offer complete solutions for both consumers and professionals, collaboration between marketing, R&D and design is a key factor, as well as the transfer of knowledge from the Group’s professional business to consumer products.
Electrolux kitchen products account for almost two-thirds of the Group’s sales .The company holds strong positions in all major categories of kitchen appliances and commands significant global market share. The most rapid increase in sales can be seen in growth regions such as Latin America and Southeast Asia, where the Electrolux offering is primarily targeted to the fast-growing, urbanized middle class.
For many years, Electrolux has been a recognized leader in cookers, hobs and ovens and has developed numerous new functions that simplify cooking for both households and professionals.
In 2013, a large number of new innovative products were launched, such as the CombiSteam SousVide oven and vacuum sealer in Europe and the Frigidaire 50/50 Symmetry Double Oven in North America. The biggest launch was made in China, with more than 60 new products for kitchen and laundry. The Group has strengthened its leading position in built-in appliances in recent years through extensive product launches and partnerships with kitchen manufacturers.
Electrolux provides restaurants and industrial kitchens with complete solutions for cookers, ovens, refrigerators, freezers and dishwashers. Products are largely sold as modules, allowing buyers to choose suitable functions to meet their needs.
Electrolux conducts its Professional Products operations worldwide and has a global service network. Its strongest position is held in Europe, where half of all Michelin-starred restaurant kitchens are equipped with Electrolux appliances.
Rapid lifestyle changes experienced by consumers in many countries have led to a demand for products that make life easier, make cooking healthier and food storage safer. Interest in more advanced cooking is rising mainly in mature markets.
An increasing number of people want to emulate professionals and are looking for products and functions used by the very best chefs. Buyers of professional food-service equipment have widely differing yet strict requirements regarding performance and technology, for example, which implies that manufacturers must be able to deliver flexible solutions. Both consumers and professionals want products with low water and energy consumption that are manufactured from sustainable materials and can be easily recycled.
Alongside the expansion generated by the greater purchasing power of households in growth markets, innovation is driving substantial growth in certain segments of the kitchen appliances market, such as combination steam ovens, induction hobs with preset cooking zones and refrigerators with advanced technology. In some regions, most households still have no dishwasher, despite the volumes of water that can be saved by having a machine instead of washing dishes by hand. The development of new, water and energy-efficient dishwashers for both households and professionals is progressing rapidly at Electrolux.
Washing machines and tumble-dryers represent a product category with major growth potential, particularly as a result of increased water shortages around the world. Electrolux has a strong position in most regions and is producing high-performance solutions in terms of water and energy efficiency for both households and professional users. The largest global market share is in front-load washing machines, where the Group is a leading producer. For professional users, Electrolux sells advanced laundry solutions for various segments such as laundry rooms in apartment buildings, hotels and hospitals as well as commercial laundries. The majority of sales in the professional market is generated in Europe, although the most rapid increase in sales is taking place in the US, Southeast Asia and Japan.
Electrolux develops innovative solutions for washing machines and tumble-dryers for households based on its expertise in professional laundry products. Two new industry-leading products launched in 2013 are the AEG ÖkoKombi, the world’s first washer-dryer with heat pump technology and the AEG ÖkoMix washing machine with A+++–50% energy rating.
Electrolux professional washing machines and tumble-dryers are among the most energy and water-efficient on the market.
Professional laundry solutions for housekeeping purposes is a fast-growing segment for Electrolux that includes hotels, care institutions and facility management. Energy-efficient and gentle tumble-dryers are another growth opportunity. Electrolux is a leader within these product areas and is continuously launching new, innovative and energy-efficient tumble-dryers for consumers and professional use.
As one of the few global manufacturers of vacuum cleaners, Electrolux can focus on global product development, with a key focus lies on innovative and energy-efficient vacuum cleaners in the upper-price segments. Electrolux is also a market-leader in the central vacuum-cleaner segment and holds a substantial market share in vacuum cleaner accessories. The majority of sales are generated in Europe and North America, while Asia and Latin America account for the fastest growth.
Trends in floorcare products
Consumers want vacuum cleaners that have high suction power and are ergonomic, quiet and user-friendly. The growing number of small households across the world is resulting in an increasing demand for small, compact and efficient vacuum cleaners. They should also have an appealing design that means they do not need to be hidden away. Increasing environmental awareness is driving demand for vacuum cleaners that use less energy and that are sustainably manufactured.
Electrolux continuously develops innovations and models with attractive designs that can be customized to a variety of segments and regional requirements. Electrolux holds a leading position in rechargeable, handheld vacuum cleaners in Europe and also has a strong position in other parts of the world where compact vacuum cleaners are in demand, such as Japan and South Korea.
Small domestic appliances
The global market for small domestic appliances is significantly larger than the vacuum cleaner market and shows significantly faster growth. The Group’s offering in this product category has increased substantially in recent years, primarily through products in the upper price segments with distinctive design. Sales are conducted across the globe with the largest share in Europe, closely followed by Latin America. The offering varies according to market but the primary focus is on five product groups – coffee-makers, kettles, mixers, food-processors and irons.
In Europe, the coffee-maker segment is the fastest-growing sub-category within small domestic appliances, which in turn is growing faster than the total market for household appliances. Latin America accounts for the largest share of small domestic appliances in all regions and is growing rapidly as the purchasing power of households increases. Electrolux has a strong position in the iron, coffee-maker and mixer categories.
Asia is both the largest and fastest growing market in the world for small domestic appliances. Electrolux focuses on launching strong offerings in four categories – rice cookers, mixers, compact ovens and irons – all of which hold potential for rapid growth in the region.
Adjacent product categories
Adjacent product categories encompass several areas where Electrolux has identified opportunities for profitable growth. Electrolux can take advantage of it’s existing product ranges and develop the market’s best service while strengthening its offering of spare parts and accessories. In parallel, there are adjacent product categories in which Electrolux sees growth opportunities, including air-conditioning equipment and water heaters.
Considerable potential for accessories
In certain industries, sales of accessories account for up to 30% of the sales value of the underlying product. For appliances, the corresponding figure is just a few percentage points. In 2013, a new product range was launched in Europe that included items such as baking trays, cleaning fluids for hobs and digital thermometers.
Air-conditioning equipment and water heaters
Although the global market for air-conditioners and water heaters is of the same size as the market for refrigerators and freezers, it will probably expand at a faster rate in the future.
Electrolux adapts its offering on the basis of various regional and local needs and has identified growth opportunities in all regions of the world. Within air-conditioners, the Group already holds strong positions in Brazil, the US and Australia. Electrolux is advanced in terms of low noise levels and has a strong offering in the areas of service and installation. In countries with hot climates, world, air-conditioners are usually one of the first appliances demanded by households when their purchasing power increases.
Read more about Electrolux Strategy
To outperform market growth and simultaneously enhance profitability, the Group is implementing a number of strategic initiatives.Read more
Since 2004, the Group has been gradually restructuring its production through a thoroughly planned manufacturing footprint project that is planned to be finalized by 2016.Read more
Dedicated employees with diverse backgrounds play a crucial role in creating the innovative corporate culture necessary for Electrolux to be successful.. The Electrolux leadership model acknowledges that the path toward success begins with people.Read more