Through profitable growth, innovative products, strong brands, operational excellence and dedicated employees, Electrolux will achieve its vision to be the best appliance company in the world.Read more
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.
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 culinary expertise has also been increased in the Group to enable it to create more innovative products for food preparation and food preservation. Key to the above efforts is the transfer of know-how and experience from the Group’s professional business to consumer products. Product development focuses on a number of areas aimed at contributing to the culinary dining experience, a simpler and healthier lifestyle and resource-efficient solutions for the home.
Accelerated product development
The process for consumer-driven product development is used for all new products. Close collaboration between the Group’s marketing, R&D and design functions increases consumer insight and market knowledge, thereby enabling products to reach the market quicker and ensuring that these products are preferred by more consumers.
Each sector of the Group has teams working with these functions. The process also facilitates sales via new channels, establishment in new markets and ventures into entirely new product categories. 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.
Cooking with steam
Cooking with steam has long been a key method used in the best restaurants, and it is now spreading to private households. Electrolux has a broad and innovative range of steam ovens for use in the home. In 2014, a new app was launched, the AEG Let’s Taste app for Android and iOS, that allows consumers to remotely control the temperature, time and other functions of their ovens. A camera inside the oven sends images of the dish being prepared to a smartphone or tablet device.
More research and development
Over the last few 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.
Since 2009, 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 aim is for this trend to continue. The increased investment in new technology is focused on the development of intuitive and user-friendly control panels as well as solutions with less environmental impact.
The most significant environmental impact for Electrolux 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 household appliances.
A Green Range performance indicator for the most efficient products in main markets allows comparability of environmentally leading products against the total range. A key challenge is to meet increasing demand for energy and cost-efficient household appliances by transferring innovation rapidly from the premium to the mass-market segment.
Products for various segments and regions
The share of product development that encompasses global projects is increasing. 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. Brand differentiation, rapid product development and efficient production are required to reach consumers with products 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. The modularization program was recently further expanded.
Electrolux also has a number of development centers for household appliances throughout the world, focusing on such rapidly growing areas as induction and steam. New technology also opens opportunities for new solutions, such as connected kitchen and laundry appliances. Electrolux is a member of the AllSeen Alliance, the broadest collaboration project for developing an open source code for connected products.
Investments in service and aftermarket
Electrolux offers efficient service, rapid upgrades and a broad range of accessories and consumables. The Group strives to offer the market’s best service. Well-functioning service activities have the advantage of increasing customer satisfaction and presenting opportunities for profitable aftermarket sales. The long-term objective is to increase the share of a product’s sales value that comprises service, consumables and sales of accessories to a minimum of 10%.
Read more about Electrolux Strategy
To outperform market growth and further enhance profitability, Electrolux is implementing a number of strategic initiatives.Read more
A growing middle class leads to increasing demand for products with innovative design under well-known, global brands. The launch of new, innovative consumer products in the premium segment is supported by a strong link...Read more
Operational excellence is a prerequisite for sustainable profitability. Electrolux is leveraging its global strength and scale to increase efficiency and lower the cost base.Read more
Dedicated employees and outstanding leaders play a crucial role in Electrolux achieving the Group's targets and vision. A strong set of values forms the foundation for all operations. In addition, employees are driven by...Read more