Annual Report 2013

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Small Appliances

Electrolux is one of the world’s largest vacuum-cleaner manufacturers and the only real global company in the industry. Europe and North America account for the majority of the Group’s sales, while the fastest growth is occurring in Asia and Latin America. Electrolux has a rapidly growing business within the small domestic appliances segment, with an ever broader product portfolio. A large number of new products were launched in 2013.

Henrik Bergström

Head of Small Appliances

Share of net sales 2013

Share of operating income

8% 10%

Market position

  • Leading positions in Europe, North America and Latin America

The Group holds leading positions in the largest markets, and has a particularly strong presence in the premium vacuum cleaner and rechargeable vacuum cleaner segments. Electrolux focuses on global development of innovative and energy-efficient vacuum cleaners in the upper-price segments. In Europe, most products are sold under the Electrolux brand, which is complemented with the AEG brand. In North America, the Eureka brands dominates, complemented by Electrolux in the more exclusive segments. Sales in Latin ­America and Asia are predominantly under the Electrolux brand.

Growth and innovation

The Group’s sales of vacuum cleaners and small domestic appliances grew particularly rapidly in Latin America and Asia. In Asia, sales also grew strongly in mature markets such as Japan and Korea, ­as a result of sales channel expansion and through the introduction of new, innovative products. New products and additional sales channels also made a positive contribution to growth in Latin America.

In Asia and Latin America, initiatives to increase sales of accessories and spare parts were implemented in several countries and via new channels.

Sales growth for small domestic appliances remained very robust in Europe, Asia and Latin America. The launch of new products, such as new coffee­makers, food-processers, mixers, rice cookers and irons, made a marked ­contribution to growth.

In 2013, a record number of vacuum cleaners and small domestic appliances were launched globally.

A new generation of the test winner and premium model of the vacuum cleaner, UltraOne was launched in addition to the introduction of a new generation of the vacuum cleaner UltraSilencer. Operating at a noise level of only 61dB(A), the UltraSilencer is the quietest vacuum cleaner that Electrolux has ever developed and probably the ­quietest vacuum cleaner in the world.

With the new innovative UltraCaptic, Electrolux strengthened its position in the bagless vacuum-cleaner segment. A new generation of Ergorapido – the Group’s highly successful cordless handheld vacuum cleaner – was launched in Japan. The launch continued in North America and the product will be in stores in Europe in the first quarter of 2014.

In North America, one of the products launched by the Group was the lightweight, upright vacuum cleaner AirSpeed ONE. The Airspeed family now comprises eight models with shared design traits.

Operational excellence

During the year, production volumes of vacuum cleaners increased sharply at the plant in Juarez, Mexico. Consequently, an improved balance was achieved between products manufactured by suppliers and in-house manufacturing, at the same time as production of key products was moved closer to the markets. Production at the plant in Brazil for the local market also increased. Production of vacuum cleaners commenced in Egypt for the countries in the Middle East.

The systematic efforts to reduce component costs in existing and new products yielded excellent results.

As a result of the success of the capital-efficiency program, working capital declined significantly and the capital turnover rate increased during the year.

Net sales and operating margin 2013
Electrolux sales increased in all regions as a result of higher volumes. Sales volumes of small appliances were particularly strong in the Asia/Pacific region. Operating income declined. Increased costs for sourced products in Europe and Brazil, related to the strengthening of the US dollar against local currencies were the main factor. Mix improvements and higher prices made a positive contribution to results.

Priorities moving forward

  • New, innovative floor-care product launches in all regions
  • Growth for small domestic appliances in all regions
  • Further strengthening of marketing, for example, by increased focus on digital marketing
Market demand for 2013 compared to 2012
Electrolux markets and average number of employees 2013

Product highlights

The Electrolux UltraCollection vacuum cleaners

Electrolux UltraCollection consists of five newly launched vacuum cleaners with a cohesive design style. Improvements have been made to the new UltraOne in no less than 40 areas – for example, it is now 1 kg lighter and is several decibels quieter than the previous generation.

New products

Electrolux Assistent The range of small kitchen appliances was broadened with the introduction of such products as the new Electrolux Assistent. The growing global range of small domestic appliances for cooking was marketed in a unique and award-winning social-media campaign called ‘Now You Are Cooking’. A third generation of Ergorapido was launched in Japan, which is the largest market for the product.

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