Annual Report 2018

PDF of legal annual report with financial statements.

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Annual Review 2018

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With drivers that prepare us for the future

Emerging Markets Acceleration

Fuelling growth for the next 100 years

Driven by rapid industrialisation and a developing middle class, most of the world’s economic growth is now being fuelled by emerging markets and the International Monetary Fund projects this trend to continue. As Electrolux enters its 100th year, capturing the growth of emerging markets is key to positioning the Group for future success.

Historically the approach to emerging markets has been mainly local and we have not been able to fully leverage our scale and innovation capabilities. We see an opportunity to target the global emerging markets urban mass-premium consumer with a clear market positioning, targeted product platforms and innovation road map, mainly leveraging the Electrolux brand. With this approach as a foundation, we will develop enhanced and differentiated market access approaches for various sub-regions in emerging markets.

Electrolux is positioning itself to tap into growth opportunities through the following areas:

Consumer needs – Consumers in emerging markets share similar needs as they become more affluent and move to more urban living spaces. As incomes rise, consumers will be looking to spend more on higher quality products for their homes.

Customer landscape – With the growth of the urban middle class, the expansion of cities and urban areas is also expected to increase. This not only creates opportunities in greater project developments, but also in new channels and distribution.

Focus and synergies – A focused approach enables consolidation of resources and better leverage of our shared expertise, knowledge and investments to drive scale and profitable growth.

2018 execution

  • Decided to merge the Asia Pacific and Middle East & Africa regions, two areas of the world with the highest percentage of emerging markets, into one business area. The new APAC & MEA business area covers the largest markets within the Group, with the potential to reach over four billion consumers and more in the years to come.

  • In Latin America, we have clarified our brand and product innovation approach to Brazil, Argentina and Chile, where we are large players. We have also initiated a refocused approach in regions outside these three main markets.
  • The APAC & MEA and Latin America business areas have begun to develop specific emerging markets product offerings and innovation for taste, care and wellbeing experiences.