To outperform market growth and further enhance profitability, Electrolux is implementing a number of strategic initiatives. The focus is on increasing the share of sales in growth regions, strengthening the position in the Group’s core markets and in the global premium segment, expanding in profitable high-growth product categories, developing service and aftermarket operations and reducing complexity and costs in manufacturing. In addition to organic growth, Electrolux also sees the potential to increase the pace of growth by way of acquisitions. In September 2014, Electrolux signed an agreement to acquire GE Appliances, one of the leading appliance manufacturers in the US.
The global major appliance market is very fragmented and Electrolux sees the potential to increase the pace of growth by way of acquisitions. Acquisitions are an integrated part of the growth strategy. In September 2014, Electrolux signed an agreement to acquire GE Appliances, one of the leading appliance manufacturers in the US. Completion of the transaction is mainly subject to regulatory approvals. The acquisition is expected to close during 2015.
As an element of strengthening market positions, Electrolux is accelerating product innovation and, in parallel, reducing the time to market for products. In North America, a number of innovative products was launched under the Frigidaire and Electrolux brands in 2014. Focus on sustainability opens opportunities for new products. In Europe, one example is the ÖKOKombi washer/dryer under the AEG brand, which utilizes heat-pump technology to reduce water and energy usage by up to 40%.
A significant portion of the Group’s growth is in emerging markets, such as Southeast Asia, Latin America and China. A key part of this expansion is through resource-efficient products. During the year, the launch of new kitchen and laundry products continued in China. In Latin America and Asia/Pacific, new appliances, vacuum cleaners and small domestic appliances are being launched continuously. In 2014, emerging markets accounted for about 35% of Group sales.
Electrolux is continuously expanding its product offering. Examples from 2014 include the launch of new steam ovens with a sous-vide function and induction hobs using new technology in Europe. BeefEater Barbecues was acquired in Australia, which boosted the Group’s barbecue offering, a key segment in kitchen products in Australia.
Adjacent product categories, such as air care, water heaters, accessories and small domestic appliances, have substantial growth potential. The Group’s offerings in these product categories have increased substantially in recent years.
Electrolux product development focuses on a number of areas aimed at contributing to the culinary dining experience. Key is the transfer of know-how and experience from the Group’s professional business to consumer products.