The Electrolux business model focuses on creating best-in-class consumer experiences.Read more
The Electrolux Group’s efforts in innovation have a distinct focus on the consumer’s experience. The aim is to create best-in-class experience for consumers.
All product development at Electrolux aims to give consumers the best possible experience and results when using Electrolux products. A key factor is the transfer of knowhow from the Group’s professional business operations to consumer products. Over a number of years, the Group has progressively increased investment in R&D. Electrolux gains knowledge of consumer behavior by performing an extensive number of interviews and home visits to obtain information on the use of various household appliances and the needs that exist. In order for a new product to be launched, at least 70% of the consumers in a test group must have expressed a preference for the product over similar alternatives in the market.
Key areas of innovation
Product development has been divided into three main areas to offer best-in-class consumer experiences: great tasting food, care for clothes and healthy well-being in the home.
- Great tasting food: Electrolux products help consumers to achieve a culinary experience, and cook healthy and nutritious food for family and friends. Some examples include the Electrolux Combi steam ovens and the blast chiller that brings the cook-and-chill technique of professionals to consumers. A continuous dialog with professional chefs and the development of new solutions for restaurants and hotels across the globe have provided valuable insight that has been conveyed to other parts of the Group. Collaboration with professional users includes a partnership with the World Association of Chefs’ Societies (Worldchefs).
- Care for your clothes: Electrolux helps consumers to take care of their clothes so they feel new and clean for longer. A common problem is avoiding using the washing machine or tumble dryer for certain garments. Electrolux has solutions to make it possible to use its products without having to worry about the outcome. In the textiles area, the Group also benefits from the experience of professional users when new products are being developed for consumers, such as dryers with heat-pump technology and the semi-professional Electrolux myPRO washing machine for smaller companies.
- Healthy well-being: Consumers also want to create a clean and healthy indoor environment free from dust, allergens and pollution. Electrolux has solutions for this, including vacuum cleaners, air-conditioning devices and water cleaners. One example of innovative solutions in this area is the Frigidaire Cool Connect in North America, the Group’s first connected air conditioner.
Products for different regions
Consumer needs and preferences vary considerably between different parts of the world. Electrolux global projects account for an increasing share of product development and the Group’s global modular platforms facilitate the spread of successful launches from one market to another, with adaptations to local preferences. Such adaptations are crucial to giving the best possible experience to consumers around the world. The platforms also support the company’s objective of offering more resource-efficient products to more consumers worldwide.
Electrolux has about 15 development centers for household appliances throughout the world, focusing on different products and technologies. These development centers are currently located in Sweden, Italy, Germany, the US, Brazil, Egypt and China.
Close consumer dialog to strengthen the brand
Electrolux develops solutions to engage with consumers throughout the purchase and usage process. The aim is to establish an intimate dialog with consumers and strengthen the overall owner experience of the Electrolux offering. The Group’s “360º Consumer Experience” process focuses on consumers and on creating the best consumer experience of Electrolux at different stages, from exploring various alternatives, visiting websites and choosing products at retailers to installing and using the products.
New technology opens possibilities for new solutions. During 2016, approximately 6 million connected appliances are estimated to have been sold world-wide. Besides simplifying and improving the usage of products, the connection will strengthen communication with the consumer after the purchase and could provide options to upgrade the software. Connected appliances are therefore a significant area for continued innovation efforts at Electrolux.
During 2016, the Group launched a new series of washing machines under the AEG brand, where the consumer can get advice, through an app, on which programs and washing powder should be used on different types of clothes and stains. The program can then be sent directly to the connected washing machine.
Further increases in product quality
Quality is an important prerequisite for the consumer to choose an Electrolux product above competitors. The Group has ambitious long-term goals to continue to improve quality and drives global quality efforts at Electrolux Quality Management System, whose focus lies on consumers’
experience of Electrolux quality.
The most significant environmental impact for the Group is energy and water consumption during the usage of products. Accordingly, Electrolux places great importance on increased product efficiency, and sustainability is one of four prioritized areas in product development. At least one-third of the product development spend is environment-related and includes energy and water efficiency. Material efficiency is growing in importance. Electrolux has successfully introduced recycled material in vacuum cleaners and other appliances.
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