Business Model for Outstanding Consumer Experiences


To achieve our purpose and drive profitable growth, Electrolux uses a business model which focuses on creating outstanding consumer experiences. This is supported by a strong foundation of Operational Excellence and Talent & Teamship, as well as three important transformational drivers.

Branded experience innovation for profitable growth

Electrolux is putting consumers at the heart of its ambition to win in the marketplace and delivering outstanding consumer experiences takes center stage in the Group’s business model. Here we explain our three innovation areas to drive profitable growth while meeting the high demands of today’s consumer.

Taste, Care & Wellbeing Innovation means that we need a steady stream of consumer-relevant innovations under strong brands in key experience areas. We focus on enabling great-tasting food, great care for your clothes and healthy wellbeing in your home.

Branded star products with preferred partners is about leveraging the key products that truly deliver value at the key price points in the market and with the right brands. And we must bring them to market with preferred partners that help us execute this with high quality for the end consumers.

Engaging ownership and quality experiences is the third part. We want to give consumers a great ownership experience through a smart, connected home ecosystem that is focused on peace of mind, responsiveness, inspiration and perfect results. This also creates opportunities for personalized revenue streams from accessories, consumables, parts and services. Connectivity is more than anything about establishing a meaningful relationship with the owners to help them get more out of their product. This is how we create loyal repeat customers.

Execution Excellence

For the business model to work, we need to have an efficient operating structure. Another cornerstone in executing our strategy is helping our employees develop and making sure we have the right people in the right jobs. We also work actively to optimize collaboration across functions and we continuously identify new and improved ways of working.

Operational Excellence

Operational excellence is a prerequisite for sustainable profitability. Electrolux is leveraging its global strength and scale to continuously increase efficiency and lower the cost base. This is about integrating our value chain, designing for assembly, improved integration with our supplier base, and working on cost excellence and product re-engineering.

Our manufacturing focus is on efficiency and quality through modularization, automation and digital manufacturing. Increasingly, we focus also on creating a digitally integrated supply chain in order to provide outstanding service levels with short lead times. All of this is done with an absolute commitment to quality.

Talent, Teamship & Continuous Improvement

Dedicated employees with diverse backgrounds play a crucial role in creating the innovative corporate culture necessary for Electrolux to be successful and reach its targets.

Teamship is our way of working. It’s about making sure we have aligned goals that allow us to collaborate effectively, make clear choices and continuously improve our execution. It’s about roles and responsibilities in the organization, embracing team diversity and taking in learning opportunities.

Continuous Improvement is about targeting costs and achieving a culture of constantly doing things better, at a lower cost and higher value, by using clear processes and targets. With this continual aim to increase efficiency and quality, Electrolux will deliver outstanding consumer experiences.

Transformation Drivers

Three transformation drivers are fundamental to how we adapt to the markets and create outstanding consumer experiences. These are areas that are changing and redefining who we are and how we work.

Emerging Markets Acceleration

Over one billion people are expected to enter the middle-class economy within the next seven years. To succeed in capturing this emerging market growth we must accelerate development of both our value proposition and product offer establishing a clear market position focused on urban mass-premium consumers.

Digital transformation

Digital transformation is our journey to capture opportunities in products, experiences and interactions with consumers in today’s connected society. It’s also about using digital tools to increase our own productivity.

Electrolux has selected five areas to focus on within digital transformation.

  • Mobility and internet access create both the need and possibility to interact with consumers in new ways across the Digital 360 Consumer Journey.
  • Consumers have more information and more choices than ever before. This offers an opportunity to interact in a more targeted way with consumers but delivering benefits through Connected Appliances is going to take that to a completely new level.
  • We as a business can benefit by using Digital Productivity Tools to increase our own efficiency in business planning, interaction with retail partners or suppliers and within our industrial operations.
  • Modularization and digital manufacturing support improvements in how we design our factories, manufacturing flows, assembly and use automation.
  • A Digital Supply Chain that uses digital tools for demand forecasting and supply planning presents a huge opportunity for Electrolux.

Sustainable Development

Sustainability leadership is crucial to realizing the Electrolux purpose, and to deliver outstanding consumer experiences. The Group’s sustainability priorities target nine main areas that combined contribute to: Better solutions, Better operations and Better society.

Better solutions

  • Improve product performance and efficiency
  • Make better use of resources
  • Eliminate harmful materials

Better operations

  • Ensure the best health and safety
  • Achieve more with less
  • Act ethically and respect human rights

Better society

  • Offer solutions for healthy and sustainable living for more people
  • Be a force for good
  • Improve supply chain sustainability

Learn more about our Sustainability work.

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