How premium laundry added
>30% EBIT improvement
Electrolux identified a potential to grow profitably in the premium laundry category in Europe under the AEG brand, with the help of a sharpened brand and product offering. Investment in focused innovation based on consumers' Care habits led to the launch in 2016 of a new generation of AEG laundry products. The new products were based on new production architecture with a high degree of innovation and improved quality.
The revitalization of the AEG brand shifted business from an underutilized brand into a distinct laundry offer, focusing on care of clothes. Marketing focused on online content which significantly boosted click-rates, as well as increased social media efforts and knowledge about care benefits with messages like – the wool sweater guardian and the delicate shirt defender. This resulted in larger target reach and opportunity to become preferred trade partner with customers.
Consumer insight has for many years been the focus of product development, and a clear understanding of consumer relevance inherent in the development process resulted in outstanding consumer experience ratings across Europe. Market shares in laundry in Europe have increased and in 2018 the value market share was 14%.
The effects on AEG laundry business results one year after the launch were significant in the premium laundry segment in Europe:
- +0.5% value market share.
- +9% net sales increase.
- >30% operating income (EBIT) improvement.
- +7.5 percentage points increase in price index for laundry.