Emerging Markets Acceleration

Fueling growth for the next 100 years

Driven by rapid industrialization and a developing middle class, most of the world’s economic growth is now fueled by emerging markets. Capturing this growth is key to positioning the Group for future success.

Historically, the approach to emerging markets has been mainly local and Electrolux has not been able to fully leverage its scale and innovation capabilities. The company sees an opportunity to target the global emerging markets urban mass-premium consumer with a clear market positioning, targeted product platforms and innovation roadmap, 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. The focus is to strengthen the company's position in existing emerging markets and enter selected new markets.

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

Consumer needs – Consumers in emerging markets share similar needs to Western consumers as they become more affluent and move to more urban living spaces. As incomes rise, consumers will 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 the consolidation of resources and better leverage of our shared expertise, knowledge and investments to drive scale and profitable growth. Electrolux has established global product architectures/platforms for refrigeration, laundry, air & water care. This increases the pace of R&D and agility, lowers product costs and delivers economies of scale. The ‘Asia-Pacific, Middle East and Africa’ and ‘Latin America’ business areas are developing specific emerging market product offerings and Electrolux is centralizing manufacturing using the company's Rayong facility in Thailand as a manufacturing hub for emerging markets.