Creating front-load leadership in Southeast Asia
In the last ten years Electrolux has significantly strengthened its position within front-loaded washing machines in Southeast Asia through a star product approach. Behind this strong performance was a strategy to adapt the products to specific regional consumer needs, based on deep consumer insight. Many consumers found it difficult to wash certain Asian garments, as Hijab and Batik, without causing damage to the fabrics. An additional challenge was the limited power supply in markets like Indonesia resulting in limited usage of “Hot Wash” programs and hence consumers were not satisfied with the washing performance. Product development therefore focused on solving those problems delivering great washing performance also with cold water programs. The effects on sales were enhanced by a strong brand, as well as by effective marketing and distribution. Shopping insights were used to differentiate the products in-store; focusing on a few, targeted messages and creating a premium feel for the brand and the products. The strong market execution continued in this profitable segment in 2018 fueled by new product launches.
- Focused approach on understanding consumer needs.
- Easier for consumers to take care of delicate and precious garments.
- Strong sales growth with a CAGR of around 15% 2008-2018, in a profitable segment. Operating margin improved significantly compared to 2008.
- Strong innovative, consumer focused offering resulting in an uplift in average selling price.
- Significantly improved market position. Market leader in front-load washers in Southeast Asia.