Strategy
The Electrolux strategy remains firm. Through profitable growth, innovative products under strong brands, operational excellence, and dedicated employees Electrolux creates the conditions to reach its vision to become the best appliance company in the world.
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Profitable growth |
Innovation Products and services Brand and design Sustainability |
Operational excellence |
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People and leadership |
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Profitable growth
To outperform market growth and enhance profitability, the focus is on increasing the share of sales in growth regions, strengthening the position in core markets and in the global premium segment, expanding in profitable high-growth product categories, developing service and after-market operations and reducing complexity and costs in manufacturing. Despite intense competition, Electrolux captured market shares in Latin America and in several key product segments in North America, Europe and Asia in 2013.
Innovation
The Electrolux process for consumer-driven product development increases the speed of product development, in parallel, the number of products that will be preferred by more consumers. The collaboration between marketing, R&D and design is a key factor, as is the transfer of know-how from the Group’s professional business to consumer products.
Over a number of years, Electrolux has gradually increased its investment into R&D. Sustainability is a core element of the Group’s strategy, and sustainable innovation is one of four prioritized areas for product development. At least one-third of the product-development spend is related to sustainability.
Operational excellence
The Group’s manufacturing footprint is continuously adapted and the operations are streamlined to increase productivity. About 65% of the Group’s core appliances are currently manufactured in low-cost areas. Floor-care products, microwave ovens and small domestic appliances are to a major part sourced from low-cost areas. Global optimization of production and modularization releases resources for investment in product development, design and marketing. In addition Electrolux are implementing programs to reduce overhead costs and capitalizing on the Group’s global strength and scope.
People and leadership
An innovative corporate culture with dedicated employees from diverse backgrounds provides the right foundation to develop successful products for consumers across the globe. At the same time, it is important to contribute to sustainable development for current and future generations in a world that is evolving at an increasingly rapid pace. Employee passion for innovation, consumer insight and motivation to achieve results set Electrolux apart. Committed and talanted managers play a decisive role in the successful implementation of the Electrolux strategy.
Meeting macro drivers
The rapid emergence of an affluent middle class in China and other emerging markets is transforming the global market for household appliances. Electrolux has a number of competitive advantages, such as its global presence in over 150 countries, that make the Group well positioned to benefit from this trend. Electrolux aims to increase the emerging markets’ share of Group sales to at least 50%.
Macro drivers
| New economies |
Changing lifestages |
Changing lifestages |
Climate change |
Constrained resources |
Breakthrough technologies |
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Electrolux competitive advantages
| Glocal presence |
Consumer insight |
Design | Professional legacy | Scandinavian heritage | Wide product range | People and culture | Sustainability leadership |
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CEO 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%.
