Solid performance in a mixed environment
Major Appliances Asia/Pacific
Position and Strengths
- Leading market position in Australia and New Zealand, especially in cooking. These two markets account for about 50% of sales in the business area, and the Electrolux market share of core appliances in Australia is about 30%.
- Strong market position in targeted segments in Southeast Asia, especially front loaded washers where market shares have increased significantly during the last few years.
- High brand recognition in large parts of the region where Electrolux is associated with European Quality & Care, which is in line with consumers demand.
- Modern manufacturing capability in Rayong, Thailand, with economies of scale in low-cost location. About half of the products sold in the region are produced in Rayong.
1 Stability & Focus
- Focus on consumer experience innovation to further improve product mix and margins.
- Push expansion in the growing Southeast Asia region through new channels such as construction by having dedicated teams focusing on built-in categories such as cooking targeting the developers and in new geographical markets including Malaysia, Thailand and Vietnam.
- Drive sales in the profitable aftermarket segment, including service packages, consumables, accessories and adjacent products.
- Accelerate launch of connected products and ecosystem. The Asian market for connected products is more advanced compared to most other regions.
- Pursue joint-ventures and acquisitions to accelerate profitable growth in this attractive and growing region.
- Build sustainable position for the AEG brand in China.
Net sales and operating margin
share of net sales
- Organic sales growth of 3.7% driven by strong growth in Southeast Asia. Operating income and margin declined. Currency headwinds and increased costs for raw material were not fully compensated by higher sales volumes and mix improvements.
- Accelerated two-digit profitable growth in laundry and food preparation in Southeast Asia by having a sharp offering of products tailored to the specific consumers’ needs in these regions. For example cold water technology in washing machines, enabling consumers in Indonesia to get perfectly cleaned clothes despite electricity limitations.
- Developed new branded consumables and strengthened the use of call centers to address consumer needs.
- Launched AEG products in China in a limited number of stores through a joint-venture with Midea that has an extensive distribution network in China. The AEG brand stands for German engineering and is targeting Chinese customers preferring premium brands.
- Strengthened offering by introducing consumer relevant innovation including the ComfortLift dishwasher and multi-door refrigerators.
- Strong focus on cost out activities in manufacturing/logistics.