The business area continues to invest in premium product innovation to improve the product mix in key categories and drive profitable growth throughout the region. In Australia, which accounts for about half the business area’s sales, successful new product range launches under the Electrolux and Westinghouse brands have contributed to profitable growth. Electrolux has a strong market position in Southeast Asia, particularly in front-load washers. The business area has modern manufacturing capabilities in Rayong, Thailand, with economies of scale in low-cost locations. About 70% of the Business Area’s production are in Thailand, Egypt and South Africa.

Market and Position

Mature markets

  • In Australia and New Zealand, demand is driven by design, innovation as well as water and energy efficiency.
  • In Japan and South Korea, small living spaces are driving consumer demand for compact products.
  • Electrolux has leading market positions in core appliances in Australia and New Zealand, especially in cooking, and leading positions in floor care products in Australia, Japan and South Korea.

Growth markets

  • Southeast Asia is characterized by emerging economies, rapid urbanization, small living spaces and the expanding middle class.
  • Low product penetration in Africa, although the market is growing with increasing household purchasing power.
  • Electrolux has strong market positions in targeted segments in Southeast Asia, especially front-load washers.
Strategic focus Actions and execution
Strengthening product portfolio in core categories
  • Targeted growth especially in dishwasher and dryer categories. ​
  • Investing in multiple product categories for the Egyptian market​ e.g., launching new top load washers in Egypt.
  • Strengthening R&D organization within air care to accelerate growth.
  • New cordless vacuum cleaner range.
Accelerating growth by expanding category presence in key markets or entering new markets
  • In 2021 these initiatives included category expansion in key areas such as multidoor fridges and front load and washer dryer launched in Vietnam.
  • Targeted approach in China with the AEG brand resulted in strong growth in 2021
Drive expansion through new channels, such as project sales and D2C
  • Currently investing in strengthening D2C across the business area with significant growth in 2021 in many markets.
  • Project sales focus in Australia/New Zealand and China.
Reinforce the Electrolux brand positioning and leverage the AEG brand in selected markets.​
  • Driving strong profitable growth in Australia through a successful campaign for the Electrolux brand with launches in the laundry and kitchen segments. Net sales CAGR of 6% and EBIT CAGR of 27% for the Electrolux brand in Australia (2018-2021). Read more
  • Re-designing 1,000+ stores across the region to reinforce the Electrolux brand image.​
  • Ongoing activities to strengthen the AEG brand in Australia/New Zealand, South Africa and China. ​
Invest in new skills and technologies to create an even more efficient organization to support growth
  • Implementing new common IT systems across the business area. ​
  • Launched recruitment plan to support growth ambition.