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					    annual report 2010 | part 1 | world of electrolux




    the world of Electrolux
                                                  COnSUmEr dUrablES
    Customer needs and functional prefer-
                                                    EUrOPE, middlE EaSt and afriCa                            nOrtH amEriCa
    ences for products are becoming increas-
    ingly global. however, there are structural
    differences between the markets in which
    Electrolux operates. what distinguishes
    these markets, and what is driving
    growth? what does Electrolux focus on?




    Value of appliances
    market, SEK billion                             205                                                          180
    market characteristics                          • Complex market with different brands in                 • Similar consumer patterns across the market.
                                                      different countries with different consumer             • high level of consolidation among producers and
                                                      patterns.                                                 retailers.
                                                    • low level of consolidation among manufacturers.



    Share of Electrolux sales                       38%

    drivers                                         • Replacement.                                            • Replacement.
                                                    • new housing and renovations.                            • new housing and renovations.
                                                    • design.                                                 • design.
                                                    • Energy- and water-efficient products.                   • Energy- and water-efficient products.
                                                    • Improved household purchasing power in
                                                      Eastern Europe.


    market growth                                   • total demand in the European markets stabi-             • the demand increased by 5%. the growth
                                                      lized in 2010 and increased by 2%, after more             derives from a very low level after more than three
                                                      than two years of decline.                                years of decline.


    distribution channels                           • Many small, local and independent retailers.            • high level of consolidation among retailers.
                                                    • Growing share of sales through kitchen                  • Kitchen specialists such as those in Europe
                                                      specialists.                                              account for only a small share of the market.
                                                                                                              • the four largest retailers account for 60% of
                                                                                                                the market.



    Electrolux organic                              • Grow in specific categories, e.g., built-in products.   • Gain a strong, long-term position in the
    growth strategy                                 • Grow in specific markets, particularly in Eastern         profitable premium segment.
                                                      Europe.                                                 • Channel expansion.
                                                    • promote water- and energy-efficient products.           • Expand product offering.
                                                    • Expand product offering.                                • promote water- and energy-efficient products.

    Electrolux market share
                                                                              16% core appliances                                      21% core appliances



                                                                           14% floor-care products                                 18% floor-care products



                                                                                                              •	 Appliances whirlpool, General Electric, lG,
    major competitors                               •	 Appliances Bosch-Siemens, Indesit, whirlpool.
                                                                                                                 Samsung.
                                                    •	 Vacuum	cleaners dyson, Miele, Bosch-
                                                                                                              •	 Vacuum	cleaners ttI Group (dirt devil, vax and
                                                       Siemens, ttI Group.
                                                                                                                 hoover), dyson, Bissel.




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                                                                                                   PrOfESSiOnal PrOdUCtS

latin amEriCa                                  aSia/PaCifiC                                          PrOfESSiOnal PrOdUCtS




93                 375                                                                                                  136
• Majority of production is domestic due       • no clear market leader in the region.               •	 Food	service half of all equipment is sold in
  to high import tariffs and logistic costs.   • Southeast asian consumers find European                north america. the European market is domi-
• Relatively high level of consolidation         brands appealing, but their market shares are          nated by many small independent restaurants.
  among producers.                               still small.                                        •	 Laundry	Five largest producers represent
                                                                                                        approximately 55% of the global market.



32%                                                                          16%                                      8%                       6%

• Improved household purchasing power.         •	 Asia Improved household purchasing power.          •	 Food	service Energy- and water-efficient
• Growing middle class.                           Growing middle class.                                 products. US restaurant chains expanding.
                                               •	 Australia Replacement, new housing and             •	 Laundry Replacement. Energy- and water-
                                                  renovations. design. water-efficient products.        efficient products. Growing population.




• Strong growth in demand.                     • Market demand for appliances in australia           • demand is estimated to have increased
                                                 declined. Market demand in Southeast asia and         somewhat.
                                                 China showed a considerable increase.

• Relatively high level of consolidation       •	 Asia	Majority of sales through small, local        •	 Food	service	high consolidation of dealers in
  among retailers.                                stores. In urban areas, a large proportion of         north america. Fragmented market in Europe.
• the three largest producers in Brazil           appliances is sold through department stores,
                                                                                                     •	 Laundry Great proportion of direct sales
  accounted for approximately 75% of              superstores and retail chains.
                                                                                                        although the trend is towards a growing share of
  household appliances sales.                  •	 Australia Five large retail chains account for        sales through dealers.
                                                  approximately 90% of the market.


• Grow in markets outside Brazil, such         • Grow in the premium segment.                        •	 Food	service promote energy- and water-
  as argentina and Mexico.                     • promote water- and energy-efficient products.          efficient products. tailor products for fast-food
• Strengthen the position in the                                                                        chains.
                                               • Grow in Southeast asia.
  premium segment in Brazil.                                                                         •	 Laundry promote energy- and water-efficient
                                               • Expand product offering.                               products.
• Expand product offering.



                                                                                  australia,                                             Globally,
         2nd largest producer of
                                                                        42% core appliances                                        4% food service
     appliances in Brazil, and largest
           in vacuum cleaners.
                                                                                    australia,                                            Globally,
                                                                     21% floor-care products                                           11% laundry
                                                                                                                                     (own estimate)

•	 Appliances whirlpool, Mabe.                 •	 Appliances Fischer & paykel, Samsung,              •	 Food	service Rational Manitowoc/
•	 Vacuum	cleaners SEB Group, whirlpool,          lG, haier.                                            Enodis, Middleby, ali Group.
   Black&decker, philips.                      •	 Vacuum	cleaners Samsung, lG, dyson.                •	 Laundry alliance, primus, Girbau, Miele.




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