Electrolux has market-leading positions in Australia and New Zealand. Market demand for appliances in Australia increased during the year and Electrolux strengthened its position. In 2015, Electrolux launched a new range of appliances under the Westinghouse brand – the largest launch in Australia in recent years.
Kenneth L. Ng, Head of Major Appliances Asia/Pacific
About half of Electrolux appliance sales in the 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, energy and water efficiency, and design. The Group’s Westinghouse and Simpson brands command strong positions in the mass-market segment. Key competitors comprise Fisher & Paykel, Samsung and LG Electronics. Water and energy efficiency are key drivers in the hot and dry Australian climate. Electrolux dishwashers and front-load washing machines are well adapted to these conditions and have significant market shares.
In Southeast Asia, Electrolux has a strong offering of premium products aimed at the rapidly expanding middle class, for example, energy-efficient front-load washing machines and built-in appliances for the kitchen. Demand is also increasing for energy-efficient products.
China is the largest market for household appliances, measured by volume. The market share of Electrolux in the Chinese market is relatively low but there is great potential for increased sales to the rapidly expanding middle class in major cities in China.
Electrolux sees substantial growth potential in the barbecue segment, since it accounts for almost one quarter of the cooking-products market in Australia.
Growth in the appliance market in Southeast Asia has been strong in recent years, but demand declined in 2014. Electrolux sales has showed strong grown in the region and market shares have increased.
In 2015, market demand for major appliances increased by 3% in Australia. Demand declined in China, while the markets in Southeast Asia showed a mixed pattern.
Electrolux organic sales declined by 5%. The operations in Australia and New Zealand posted organic sales growth and the Group captured market shares, while sales in China and in several countries in Southeast Asia declined. Sales activities in China were reduced as Electrolux is reviewing its product offering and marketing strategy to improve the opportunities for profitable growth.
BeefEater Barbecues, which was acquired in the fourth quarter of 2014, has a strong position in the barbecue segment in Australia and positively impacted sales by 1%.
The launch of an entirely new range of appliances under the Westinghouse brand was one of the largest launches in Australia in recent years.
The transfer of production of refrigerators from Orange in Australia to -Rayong in Thailand continued during the year. This consolidation of production increases production efficiency and plays a crucial role to achieve profitable growth in the Asia/Pacific market. The Rayong plant is also a center for the Group’s global development of refrigerators and washing machines.
7%
-5.1%
| 11 | 12 | 13 | 14 | 15 | |
| Net sales | 7852 | 8405 | 8653 | 8803 | 9229 |
| Operating margin | 9.4 | 8.9 | 1.3 | 5 | 3.9 |
Sales for Major Appliances Asia/Pacific declined. Sales in Australia and New Zealand increased, while Electrolux -activites in China were reduced.
Operating income declined year-over-year. Lower sales volumes and an inventory write-down in China impacted earnings for 2015. Other regions showed solid results.
3,874
In Australia, Electrolux launched new ranges of cooking and refrigeration appliances under the Westinghouse brand in 2015, one of the largest launches in Australia in recent years. The new appliances are designed to meet the demands of today’s family life, including clever functions such as fridges that are really big on space so that everything fits in, ovens that have a steam-assist function and clean themselves and cook-tops that have a pause button.
Electrolux built-in ovens are engineered to integrate seamlessly in the kitchen giving customers the possibilities to steam-cook, bake or grill dishes. There are compact variants for smaller kitchens, full size for spacious open plan living with stylish aesthetics to enhance the kitchen design. Built-in ovens are sold under several brands, and continue to receive best-in-class ratings by consumer associations.
