The Electrolux process for consumer-driven product development enables accelerated development of products that are preferred by increasing numbers of consumers. The collaboration between marketing, R&D and design is a key factor.

Innovation goals

All product development in the Group is based on in-depth consumer insight. By performing an extensive number of interviews and home visits, Electrolux gains knowledge of consumer behavior in the use of various household appliances and the needs that exist. Based on this information, Electrolux can develop solutions that facilitate the everyday lives of consumers. The Group also leverages its specialist culinary expertise and professional business area to create yet more innovative products for food preparation and preservation.

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. If this requirement is not met, the product is sent back to the product development team to be reworked.

More research and development

Over the past number of years, Electrolux has gradually increased investment in R&D, which has led to further improvement in product quality and has reduced costs for warranty spend. Also in recent years, warranty costs have decreased significantly, essentially by an amount corresponding to the increase in R&D costs, and the sum of these two cost items for the entire period was about 5% of net sales.

The increased investment in new technology is focused on the development of intuitive and user-friendly control panels, solutions with less environmental impact and new technology that allows appliances to be controlled and connected remotely via the internet.

Products for various segments and regions

Global projects account for an increasing share of product development. The objective is to further increase the level of differentiation for new product launches in the premium segment and concurrently be able to profitably compete in the mass-market segment.

The Group’s global modular platforms facilitate the spread of successful launches from one market to another, with adaptations to local preferences. 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 centers are currently located in Sweden, Italy, Germany, the US, Brazil, Egypt, and China.

Connected appliances

New technology opens opportunities for new solutions, such as the remote control of kitchen and laundry equipment, and connected appliances, which is a highly significant area for continued innovation efforts at Electrolux. In 2015, Electrolux presented the AEG ProCombi Plus, the market’s first steam oven with an in-built camera. This combines two strong consumer trends: interest in preparing delicious, healthy food and in being able to control preparation remotely.

The Group continues to develop and launch connected products in all major product areas, and joined the AllSeen Alliance in 2014, the broadest collaboration project for developing open source code for connected products. Electrolux has also joined Google’s Early Access Program for its Brillo operating system and Weave communications protocol for the Internet of Things, which aims to develop connected appliances for smart homes.

Read more about Electrolux Strategy

The Electrolux strategy channels profitable growth, innovative products, strong brands, operational excellence and dedicated employees to reach its vision – to be the best appliance company in the world.

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To outperform market growth and further enhance profitability, Electrolux is implementing a number of strategic initiatives.

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Demand is increasing for products from well-known, global brands with innovative design. New, innovative consumer products are supported by strong links to the Group’s know-how in professional products.

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Electrolux is leveraging its global strength and scale to increase efficiency and reduce costs. Modularization and global optimization of production unlocks resources for investment in product development, design and marketing.

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Outstanding teams and leaders play a crucial role in Electrolux achieving the Group's vision and targets. Employees from diverse backgrounds working toward a common goal allows Electrolux to succeed in developing consumer-relevant appliances across...

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