annual report 2010 | part 1 | world of electrolux
the world of Electrolux
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
• 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
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
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.
• Vacuum cleaners dyson, Miele, Bosch-
• Vacuum cleaners ttI Group (dirt devil, vax and
Siemens, ttI Group.
hoover), dyson, Bissel.
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.
2nd largest producer of
42% core appliances 4% food service
appliances in Brazil, and largest
in vacuum cleaners.
21% floor-care products 11% laundry
• 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.