Case story ~ care
Consumer insight drives premium laundry mix improvement
The promotion of consumer-relevant premium laundry products in Europe has resulted in greater market share and increased profitability.
- 3.9 pts of the total EBIT margin improvement of 7.3 pts came from mix contribution (2019 vs. 2013)
- Value market share in premium front-loaded laundry increased by 2 pts (2019 vs. 2013)
Deep consumer insight for premiumization
Electrolux has drawn on deep consumer insight to better understand the needs of premium laundry product consumers in Europe and develop new innovations that address these needs.
By offering laundry products with enhanced features that are relevant to specific target consumer groups, Electrolux has been able to improve its product mix and charge higher price points. Importantly, marketing campaigns have highlighted the consumer care experience and benefits rather than technical features.
Increased market share and EBIT margin
Even at a higher price point, Electrolux has been able to increase its market share and profitability by building on deep consumer insight and new innovations. Value market shares in premium laundry have increased by 2 pts between 2013 -2019.
Mix has accounted for more than half the 7.3 pts EBIT margin increase between 2013 and 2019 - more than both fixed cost reductions and variable cost reductions combined. This underlines the long-term importance of mix improvement in the Electrolux product portfolio, which will continue to be an important part of the strategy going forward.