Asia/Pacific
Major Appliances
Electrolux focuses on strengthening its market-leading position in Australia and New Zealand and expanding in growth markets in Southeast Asia and China. A new complete product range adapted to the Chinese market was launched during the year. This represents an important step for growth in the key Chinese market and marked the Electrolux Group’s largest launch in 2013.
Gunilla Nordström
Head of Major Appliances Asia/Pacific
|
Share of net sales 2013 |
Share of operating income |
|---|---|
| 8% | 12% |
Market position
- Core appliances 40% in Australia.
- Small but growing market share in Southeast Asia
About 50% of Electrolux appliances sales in the Asia/Pacific region is in Australia, where the Group is the market leader. The Electrolux brand is positioned in the premium segment with a focus on innovation, water and energy efficiency, and design. The Group’s Westinghouse and Simpson brands command strong positions in the mass-market segment. Electrolux focuses on strengthening its robust market-leading position in Australia and New Zealand. In recent years, demand in the market has been weak, with intense competition from such manufacturers as Fischer & Paykel, Samsung and LG Electronics. The market improved slightly in 2013, and the Group’s sales and market shares increased. Water and energy efficiency are key drivers in the hot and dry Australian climate. Dishwashers and front-load washing machines are therefore fast-growing product categories, and Electrolux controls considerable shares of these markets.
Growth and innovation
Electrolux has reported an annual growth rate of over 40% in China since 2009, with particular success in the refrigerator and air-conditioner segments. While Electrolux only controls a small market share in China, sales have grown sharply in parallel with the market expansion. China is the world’s largest market for household appliances, measured by volume, and the growth rate in the region is high. Profitable expansion in China is a central part of the growth strategy and Electrolux is focusing its offering on premium appliances for the rapidly growing middle class in major cities. 2013 marked the largest launch ever of a complete range of kitchen and laundry appliances, which were especially developed for Chinese consumers. The range, comprising more than 60 products, is being sold by leading retailers in metropolitan areas in China and includes refrigerators, washing machines, hobs, hoods and appliances for sterilizing dishes.
Growth in the appliances market in Southeast Asia has been strong in recent years, and the growth trend continued in 2013. For Electrolux, sales have grown robustly in pace with the rapid expansion of the economies in the region. Electrolux has a strong offering of premuim products, for example, energy-efficient front-load washing machines and built-in appliances for the kitchen, such as gas hobs with burners that are specially adapted for stir frying. Premium products are in demand by a rapidly growing middle class. Demand is also increaseing for energy-efficient products. Refrigerators from the newly opened factory in Thailand further strengthened Electrolux position in Southeast Asia in 2013.
Efficient manufacturing
Over the past number of years, Electrolux has worked to streamline manufacturing and, in early 2013, the Group’s new production facility for refrigerators was inaugurated in Rayong, Thailand. The facility is at the center of the Group’s global development of refrigerators and plays a crucial role in efforts to achieve profitable growth in the Asian market. The facility manufactures refrigerators that are specially adapted to the Asian market using the latest technology and its production capacity is about 600,000 units per year. To further streamline and consolidate manufacturing, it was decided in the latter part of the year to close the refrigerator plant in Orange, Australia, and concentrate production to the plant in Rayong, Thailand.
Net sales and operating margin 2013
Priorities moving forward
- Strengthen the leading position in Australia and New Zealand
- Grow profitably in Asia
- Increase market shares in China
Market demand for 2013 compared to 2012
Electrolux markets and average number of employees 2013
Product highlights
China launch
With more than 300 million middle-class consumers, the Chinese market is already as important as Europe or North America and is growing fast. As a key part of the Group’s growth strategy, Electrolux made its biggest product launch in 2013 in China, with more than 60 new products for kitchen and laundry. The new range includes refrigerators, washing machines, cooking hobs, hoods and dish sterilizers.
Time Manager
Electrolux Time Manager lets people wash based on how dirty the clothes are. The washing machine has a load sensor to ensure the detergent and wash parameters match the load.
StopSearchHereCEO Statement
In 2013 we continued to deliver above our growth target and delivered 4.5% in organic sales growth.
CEO Statement
I'm convinced that raising product efficiency for the growing middle class is where long-term shareholder value creation lies.
Our products
Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.
Sustainability
Achieving the Group's vision of sustainability leadership is crucial to realizing the business strategy. The objective is to develop smarter, more accessible, resource-efficient solutions that meet people's needs and improve their lives. Read the comprehensive sustainability performance review.
Awards & recognition
Financial Reporting
Net sales for the Electrolux Group in 2013 amounted to SEK 109,151m, as against SEK 109,994m in the previous year. The organic sales growth was 4.5%, while currencies had an impact of -5.3%.
