Driving sustainable consumer experience innovation

A streamlined and innovative product portfolio with proven consumer benefits

Three defined areas of innovation - Taste, Care & Wellbeing

  • Innovation and product development focus on great tasting food, care for clothes and healthy wellbeing in the home.
  • Targeted R&D gives us a competitive advantage – optimizing our offering and shortening the time to market.
  • Innovation in energy and resource efficient products provides competitive advantages in a market increasingly interested in sustainability.
  • We provide differentiated, consumer-relevant and globally-applied technology platforms – with a unique emphasis on consumer benefit and experience.

Case story: Profitable growth through targeted innovation in steam ovens 


  • +310% profitable volume growth (2019 vs 2015)
  • +6 pts market share growth (2019 vs 2015)
  • +180% CTF growth* (2019 vs 2015)

Deep consumer insight – is a competitive advantage in an age of greater consumer awareness

  • A human-centric design process is critical.
    • Consumers are our starting point to define business opportunities, followed by extensive consumer testing.
    • We co-create with consumers, rather than purely observing them.
  • Our product R&D is based on a long history of consumer insight through surveys, consumer data, home visits and user experience labs.
    • We have our own tools for gathering online consumer comments about Electrolux and competitor products – which are analyzed and fed into the design process.
    • Testing in user experience labs and through Virtual Reality tools allows us to test early concepts and expand testing to more countries.
    • Deep consumer insight increases our success rate and return on investment.

Consumer star ratings

Case story: Consumer insight drives premium laundry mix improvement


  • 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)

A streamlined portfolio focusing on higher margin categories

  • We have recently streamlined our product portfolio, resulting in fewer product variants to reduce cost and increase sales.
    • In North America, the number of products (Stock Keeping Units) were reduced by more than 55% by the end of 2019 compared to the beginning of 2017.
  • Successful execution of the strategy has strengthened our position in key categories by launching more innovative products with enhanced consumer benefits. These products command a higher price and drive margin expansion – we call this ‘mix improvement’.
    • Mix improvements have significantly contributed to operating income in recent years, demonstrating that Electrolux product innovations are in demand.
  • Our most resource-efficient products also drive profitability – enjoying higher margins than other products on average since the 1990s.

Driving margin expansion through innovation

Product portfolio management in the business area Europe has accounted for a large proportion of its operating margin increase in the last five years.

Case story: Targeting attractive categories through consumer-driven innovation


  • Electrolux has achieved a star rating of 4.6
  • Contributed to improved mix in North America
  • Increased market share in premium cooking from 2.6% to 10.7%

Our consistent push for innovation has resulted in leading segment and market positions

  • Europe – leading position in premium segments for built-in kitchen and laundry.
  • Southeast Asia – strong position in front-load washing machines.
  • Latin America – leading position in innovation within core categories.
  • A focus on innovative design to promote the most efficient and sustainable appliance settings, such as the QuickSelect dishwasher function.
Case story: Keeping leadership in a fast growing, high-margin category


  • Keeping leadership in a fast growing, attractive category
  • Profitable growth in the high-capacity top load washing machine category by 35% between 2015 and 2019
  • High consumer star rating in Brazil of 4.6

New consumer experience (CX) organization strengthens our offering

  • Established in 2019 – combining marketing, design, digital consumer solutions and ownership experience to ensure consumer experience focus throughout the entire product development and user phase.
  • We can leverage our consumer experience expertise to:
    • Accelerate product innovation and ownership solutions.
    • Translate experience innovation into brand storytelling and product design.
    • Drive connected ownership solutions for aftermarket growth.

Strong consumer experience understanding leads to higher revenue and value creation to shareholders 

TRS = Total returns to sharehholders

Well-established brands with a strong innovation heritage

Strong brands drive profitable growth

  • Brands enjoying better recognition in an age of greater consumer awareness and positive user experience have a competitive advantage. 
  • Strong brands drive profitable growth by selling more products at higher prices – 1.3 x higher sales growth for strong brands vs average brands.1)

1) Prophet Brand Relevance Index 2017 – 10 year CAGR of most relevant brands vs. S&P 500 Average.

High brand awareness is built on 100-year track record of innovation

  • We celebrated 100 years as an innovation leader within the home appliance market. 
  • Innovations include the launch of the world’s first absorption refrigerator, the world’s first countertop dishwasher and the very first robot vacuum cleaner.
  • We know how important brand awareness and experience are – both when consumers equip a newly built or refurbished property with appliances and when they need to replace appliances. 
Case story: Leveraging our Swedish heritage in Australia


  • Increased Electrolux branded sales in 2019 by close to 45% with strong  EBIT Contribution.

  • Increased market share 

    for the Electrolux brand significantly. 

Three well-established brands with a sharp brand proposition

  • Our three main brands – Electrolux, AEG and Frigidaire – represent ~80% of total Group gross profit and receive the vast majority of investments in marketing, design and R&D. 
  • To maximize the profitability of these brands, we target key products and categories appealing to distinct consumer groups for each of our brands.
  • The AEG and Frigidaire brands have been successfully adapted in recent years to target specific consumer segments, focusing more on benefits and consumer experience.
  • In 2019, the Electrolux brand was sharpened globally, building on its Swedish heritage and sustainability profile as a competitive advantage.
  • Sharpening of the brands has resulted in an increased brand preference in more than 60% of Electrolux markets.

A portolio of well-established brands with a clear focus

Sharpened brand postition

Case story: Meeting consumer need through consumer-centric innovation


  • Contributed to strenghtened value market share in built-in kitchen
  • Contributed to improved mix in Europe
  • Recieved 4.9 in consumer star ratings

Sustainability leadership differentiates Electrolux and drives profitable growth

Sustainability leadership in the appliance industry is a competitive advantage for growth

  • Consumers, retailers and authorities increasingly prioritize sustainability, e.g. over 70% of Swedish consumers consider sustainability when purchasing appliances1).
  • We have first mover advantage, with a clear aim to continue to be the sustainability pioneer. 
    • In the 1990s, we were the first appliance company to focus on sustainability – which has been at the heart of our strategy ever since. 
    • The Electrolux Better Living Program 2030 is an initiative to enable better and more sustainable living for consumers around the world. 

Better Living Program

The Better Living Program 2030 targets are aligned with the United Nations Sustainable Development Goals and integrated into the Electrolux sustainability strategy.

1) Svensk Handels hållbarhetsundersökning (2018).

Sustainable products are more profitable

  • The company's most energy and water efficient products accounted for 23% of total units sold and 32% of gross profit in 2019. Our most resource-efficient products have consistently had a higher margin in recent years.
  • More sustainable products, with lower energy and water use, offer greater consumer benefit and consumers are willing to pay a higher price.
  • Resource-efficient products are essential for sales growth in emerging markets, e.g. in water and energy scarce regions.

Our most resource-efficient products have a higher margin

Case story: Consumers willing to pay extra for eco features


  • The QuickSelect dishwasher range has driven the gain of 0.9 pts value market share since 2018
  • 4.7 in consumer star ratings

Greater resource efficiency is a Group priority to further strengthen competitiveness

  • In products – to strengthen our offering.
    • 6% more recycled plastic used in products 2019 vs. 2015.
  • In operations – to reduce operational and manufacturing costs and risk exposure.
    • SEK 600m reduced annual energy costs vs. 2005. 
    • 75% less absolute CO2 emissions in operations vs. 2005.
    • 44% less energy used per manufactured product vs. 2005.
    • 34% improved water efficiency in operations vs. 2015

Greater resource efficiency reduces costs

Case story: Resource-efficient products deliver higher profit


  • The Electrolux UltraCare washing machines have seen good growth of 27% in 2019 and accounted for almost 20% of Electrolux branded European laundry volumes
  • Washing machines with UltraCare technology has twice the margin per unit compared to other washing machines

Strengthen our position in the high-margin aftermarket business

Doubling aftermarket sales by 2025

  • Our aim is to double Group sales in the high-margin aftermarket segment by 2025 from current ~5%.
  • We are strengthening our service product offering through extended warranties, fixed price repair model and by establishing an in-house, digitally supported sales force.
  • We are increasing direct consumer contact and promoting consumer loyalty – by establishing a digital consumer service interface, consumer relationship management systems and connected products.
Case story: Fixed price repair service targets high-margin aftermarket growth


  • Electrolux aims to double aftermarket sales to 10% of sales by 2025
  • More than doubled Net Promoter Score in 2 years from 20 to 45

Potential to capture largely untapped aftermarket business

  • The aftermarket for consumer products is large and highly fragmented where manufacturers have limited direct access to consumers.
  • Electrolux is launching services, such as fixed price repair in Europe, that aim to access the largely untapped aftermarket business

Aftermarket services

Large installed base and strong quality focus are key strengths

  • ~400 million products, with ~12% of installed base served by Electrolux, provides huge aftermarket sales potential.
  • Product reliability is important when buying appliances, with the Service Call Rate at a record low level – 2.9% in 2019 vs 5.1% in 2015.

Service Call Rate at record low level

Note: Service Call Rate for major appliances.

Digitalization creates opportunities and new routes to market

  • The digital revolution is changing consumer behavior and Electrolux can find new routes to market and interact directly with consumers. 
  • We are complementing traditional product sales with new business models - i.e. selling a service/rental instead of a product. 
  • Digitalization also enables new opportunities for direct consumer engagement throughout a product's use/life cycle.
  • We are continuing to expand our range of connected products to deliver great consumer experiences based on a scalable global IoT platform and with strong partnerships.

Case story: Reducing harmful allergens and pollutants in the home


  • New high-performance air purifier with an iconic design gains market share
  • Profitable entry with strong CTF* development
  • High consumer ratings of 4.9 in South Korea
  • Capturing aftermarket sales potential through connected business model

*Contribution To Fixed = Net sales - Variable costs

Clear roadmap to strengthen position in emerging markets

Emerging markets represent a potential universe of >6 billion consumers

  • The growing global middle class has increasing purchasing power and is spending more on higher quality products for their homes.
  • Consumers in emerging markets share similar needs to Western consumers as they become more affluent and move to more urban living spaces
  • Potential to create new channels and urban distribution as well as increase online sales.

Emerging markets

Strengthening existing emerging markets and entering selected new markets

  • Capturing further growth in emerging markets is key to positioning Electrolux for future success.
  • We have differentiated approaches for entering various sub-regions in emerging markets.

Specific roadmaps for each region

Case story: Emerging market entry model yields rapid results in Morocco


  • Very high Net Promoter Score of 61
  • Double digit market share in built-in, dishwashers and free-standing cookers

Leveraging global scale, local knowledge and the Electrolux brand to capture the emerging mass-premium market

  • We will increasingly leverage our global scale to support our local market knowledge.
    • We have established global product architectures/platforms for refrigeration, laundry, and air and water care. This increases R&D pace and agility, lowers product cost and delivers economies of scale.
    • The ‘Asia-Pacific, Middle East and Africa’ and ‘Latin America’ business areas are developing specific emerging market product offerings as well as innovation for taste, care and wellbeing experiences.
    • Being both global and local ensures that our emerging market offering is better adapted to changing consumer demands.
    • Centering manufacturing using our facility in Rayong, Thailand, as a manufacturing hub for emerging markets.
  • Primarily building on the well-established Electrolux brand that is closely associated with sustainability and Swedish values.
    • Resource-efficient products are essential for sales growth in emerging markets, e.g. in water and energy scarce regions.
Case story: Global presence strengthens offering in attractive refrigerator segment


  • Strong sales growth in this category in North America in 2019
  • Strengthened position in attractive segment
  • Increased efficiency and R&D pace