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Annual Report 2014 Markets EMEA North America Latin America Asia/Pacific Small Appliances Professional Products

Major Appliances
Latin America

Electrolux holds a strong position in several Latin American countries, and has long-established relationships with the major retailers and a far-reaching distribution network, which provide a solid platform for profitable growth in the region. 

Ruy Hirschheimer, Head of Major Appliances Latin America

Ruy Hirschheimer


Electrolux operations in Latin America trended favorably despite a weakening market growth. The Electrolux brand occupies a strong position through its innovative products and close collaboration with market-leading retail chains. Brazil is the Group’s largest market in the region and accounted for about 70% of Electrolux sales. In Brazil, Electrolux is the market leader in a large number of product categories.

Growth and innovation

The Latin American market is dominated by a few large manufacturers. In Brazil, Electrolux holds a leading position in appliances. Import duties and logistical costs mean that the bulk of products are produced domestically. The trend of consolidation is also high among retailers. Together, these factors contribute to strengthening the potential of established manufacturers in the region. Brazil accounts for about 50% of the total market. Other major markets include Chile, Mexico and Argentina. 

During the year, most Latin American currencies continued to weaken against the USD, resulting in increased costs for imports of semi-finished and finished products. Price increases mitigated the negative currency impact.

The Latin American appliance market has grown for a number of years. The reason for this has been the rising purchasing power of households, which primarily demand more basic cookers, refrigerators and washing machines. In addition, demand for products in the upper-price segments has increased among the rapidly emerging middle class. However, in 2014 demand weakened.

Electrolux is continuing to expand in Latin America through substantial investments in product development, production capacity and distribution. In 2014, the bulk of the product offering in larger-capacity washing machines and refrigerators and cookers was renewed. 

Smaller capacity refrigerators, portable air-conditioning devices and larger capacity ovens were launched to further strengthen market shares in new product categories. During the year, Electrolux expanded its service offering by, for example, establishing a service center in Bogotá, Colombia.

Operational excellence

Production efficiency was further enhanced through increased coordination and benchmarking between the production facilities in Santiago in Chile, Rosario in Argentina and São Carlos in Brazil utilizing, for example, the framework for the Electrolux Manufacturing System (EMS). Moreover, a program for more efficient and sustainable use of resources was introduced at all units in Latin America.

Share of net sales 2014


Share of operating income


Market position

  • Electrolux has the number one position in Chile and leading positions in Brazil and Argentina.
Net sales and operating margin
Net sales
Operating margin
  10 11 12 13 14
Net sales 16260 17810 22044 20695 20041
Operating margin 5.8 4.6 7.2 4.7 5.4

Comments on performance

Major Appliances Latin America showed an organic sales growth of 3% in 2014, driven by higher sales prices and a favorable product mix. 

Operating income improved year-over-year. Price increases have offset continued currency headwinds and a high rate of inflation and measures have been taken to adjust the cost base to lower demand. 

Priorities moving forward

  • Expanding best-in-class products and services offering
  • Continuing to build on the strong position in Brazil 
  • Increasing growth in other markets

Market demand for major
appliances 2014 compared to 2013




Average number 
of employees 2014




















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