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Market characteristics |
- Complex market with different brands in different countries with different consumer patterns.
- Low level of consolidation among manufacturers.
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- Similar consumer patterns across the market.
- High level of consolidation among producers and retailers.
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- Majority of production is domestic due to high import tariffs and logistic costs.
- Relatively high level of consolidation among producers.
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- No clear market leader in the region.
- Southeast Asian consumers find European brands appealing, but their market shares are still small.
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- Food service Half of all equipment is sold in North America. The European market is dominated by many small independent restaurants.
- Laundry Five largest producers represent approximately 55% of the global market.
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Drivers |
- Replacement.
- New housing and renovations.
- Design.
- Energy- and water-efficient products.
- Improved household purchasing power in Eastern Europe.
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- Replacement.
- New housing and renovations.
- Design.
- Energy- and water-efficient products.
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- Improved household purchasing power.
- Growing middle class.
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- Asia Improved household purchasing power. Growing middle class.
- Australia Replacement, new housing and renovations. Design. Water-efficient products.
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- Food service Energy- and water-efficient products. US restaurant chains expanding.
- Laundry Replacement. Energy- and waterefficient products. Growing population.
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Market growth |
- Total demand in the European markets stabilized in 2010 and increased by 2%, after more than two years of decline.
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- The demand increased by 5%. The growth derives from a very low level after more than three years of decline.
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- Market demand for appliances in Australia declined. Market demand in Southeast Asia and China showed a considerable increase.
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- Demand is estimated to have increased somewhat.
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Distribution channels |
- Many small, local and independent retailers.
- Growing share of sales through kitchen specialists.
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- High level of consolidation among retailers.
- Kitchen specialists such as those in Europe account for only a small share of the market.
- The four largest retailers account for 60% of the market.
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- Relatively high level of consolidation among retailers.
- The three largest producers in Brazil accounted for approximately 75% of household appliances sales.
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- Asia Majority of sales through small, local stores. In urban areas, a large proportion of appliances is sold through department stores, superstores and retail chains.
- Australia Five large retail chains account for approximately 90% of the market.
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- Food service High consolidation of dealers in North America. Fragmented market in Europe.
- Laundry Great proportion of direct sales although the trend is towards a growing share of sales through dealers.
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Electrolux organic growth strategy |
- Grow in specific categories, e.g., built-in products.
- Grow in specific markets, particularly in Eastern Europe.
- Promote water- and energy-efficient products.
- Expand product offering.
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- Gain a strong, long-term position in the profitable premium segment.
- Channel expansion.
- Expand product offering.
- Promote water- and energy-efficient products.
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- Grow in markets outside Brazil, such as Argentina and Mexico.
- Strengthen the position in the premium segment in Brazil.
- Expand product offering.
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- Grow in the premium segment.
- Promote water- and energy-efficient products.
- Grow in Southeast Asia.
- Expand product offering.
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- Food service Promote energy- and waterefficient products. Tailor products for fast-food chains.
- Laundry Promote energy- and water-efficient products.
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Electrolux market share |
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2nd largest producer of appliances in Brazil, and largest in vacuum cleaners. |
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Major competitors |
- Appliances Bosch-Siemens, Indesit, Whirlpool.
- Vacuum cleaners Dyson, Miele, Bosch-Siemens, TTI Group.
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- Appliances Whirlpool, General Electric, LG, Samsung.
- Vacuum cleaners TTI Group (Dirt Devil, Vax och Hoover), Dyson, Bissel.
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- Appliances Whirlpool, Mabe.
- Vacuum cleaners SEB Group, Whirlpool, Black&Decker, Philips.
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- Appliances Fischer & Paykel, Samsung, LG, Haier.
- Vacuum cleaners Samsung, LG, Dyson.
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- Food service Rational, Manitowoc/Enodis, Middleby, Ali Group.
- Laundry Alliance, Primus, Girbau, Miele.
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