Electrolux markets

Electrolux markets

The global market for household appliances is changing, including the rapid emergence of an affluent middle class in densely populated growth markets. Electrolux aims at increasing the growth markets’ share of sales, while continuing to strengthen its position in core markets.

For simplification purposes, the global market for household appliances can be split into two parts. In the mature markets (Western Europe, North America, Japan and Australia/NewZealand), population growth is low and sales are dominated by replacement products. However, the growth markets (Africa, the Middle East, Eastern Europe, Latin America, Southeast Asia and China) are characterized by rapidly rising standards of living and a large number of new households being able to invest in appliances and other household products.

In addition to the growing middle class and the underlying economic growth, the market is driven by a number of macroeconomic factors that influence volumes and the types of products that are in demand. Factors such as increased competition for natural resources and awareness of climate changes mean that a growing number of consumers are demanding energy and resource-efficient products. Households also tend to be smaller, in terms of both living space and the number of individuals, and many consumers have decreasing time for household chores while access to information about products and services is increasing, not least over the Internet.

Intense competition

Manufacturers and retailers of household appliances are becoming fewer, larger and more international. The five largest manufacturers of appliances in the world – Whirlpool, Electrolux, Haier, Bosch-Siemens and LG Electronics – account for almost half of global sales. In recent years, manufacturers from Asia have increased their market shares. To maintain competitiveness, Electrolux continue to leverage the global economies of scale. Focus is being directed to developing innovative products marketed under strong brands. Despite increasingly intense competition, Electrolux has strengthened its positions in several key product segments during recent years.

Global growth

During the last five years, global demand for appliances has increased significantly, particularly due to strong growth in Asia. In parallel, demand in the Group’s mature core markets has declined.

In 2015, growth markets accounted for about 30% of Electrolux sales and the objective is to increase this share moving forward.

Topics and categories
Read more about Electrolux Markets

Western Europe is the Group’s largest market for consumer durables and professional products.

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North America is a market with high penetration in most product categories. The average living space of households is above that of other regions, which means space is available for both many and large...

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Electrolux is focusing on launching products adapted to the differing conditions of households in the region.

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The acquisition of the Egyptian Olympic Group in 2011 has given Electrolux a leading position in the appliance markets of North Africa and the Middle East.

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Brazil represents around 50% of the total Latin American market for appliances. Other major markets include Mexico and Argentina. Latin America is a highly urbanized region for an emerging market.

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In this region, Electrolux sales focus on appliances and vacuum cleaners in the premium segment under the Electrolux brand.

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