The Electrolux share

How is demand in your key markets developing and are you gaining market shares?

The European appliance market showed market growth of around 1% in 2018, driven by strong demand in Eastern Europe. Electrolux continued to take market share in this region in 2018. In North America, demand was favorable in the beginning of the year and Electrolux gained share in core branded products but higher industry prices for appliances, driven by increased raw material cost and trade tariffs, impacted market volumes negatively in the latter part of the year. Demand in North America in 2018 declined by -1%. Markets in Latin America and Australia showed slight weakness while Southeast Asia continued to have favorable market demand. Read more.

What main industry trends do you see?

There are five main trends impacting the industry; shift in consumer power, digitalization, sustainability, growing global middle class and industry consolidation. Electrolux is well positioned to capitalize on the opportunities that industry changes creates. Consumers are becoming increasingly more knowledgeable about their options when purchasing appliances through on-line, social media and mobile access. Electrolux focuses on offering outstanding consumer experience innovation that is specifically tailored to appeal to the needs of targeted consumers and segments. The Group has strong focus on digital consumer experiences, connectivity and productivity as key value drivers. Read more.

What are the key activities to achieve profitable growth?

There are three main activities. First and foremost, Electrolux consumer-focused business model is a competitive advantage in an industry where the consumers now are in charge. Key activities are driving innovation and R&D through focused brands and new, relevant product launches to improve the mix. Secondly, the work to increase modularized products in automated production with digitally integrated global supply chain is also an important driver for profitable growth. Finally, Electrolux healthy cash flow generation combined with a strong financial position support the Group to grow its business further.

What is Electrolux doing to mitigate increased cost inflation?

Electrolux has in 2018 implemented cost-based price increases in several markets to mitigate the increased headwinds from higher raw material prices, tariffs and currency. Additional price increases starting 2019 for key markets have also been announced in 2018. The Group continues to have a strong focus on cost efficiency with an agile approach to continuously reduce costs.

Can you comment on future innovation and R&D investments?

Innovation is focused on three clear areas; Taste, Care & Wellbeing. A focused approach enables Electrolux to provide a consumer relevant offering based on globally applied technology and marketing platforms across the Group. R&D in digital and connected solutions is becoming a more important area to further support our product pipeline and drive profitable growth. In 2018, Electrolux launched several new generation products and 2019 will continue to be a year of significant product launches.

Could you update us on your re-engineering programs in North America?

Electrolux is investing in globally modularized product architectures and increasing the automation level in production to strengthen competiveness in terms of sharper product offering and improved cost efficiency. The program to modernize the production of refrigeration and freezers in the Anderson plant in the U.S. is to be completed in 2019. Read more