Highlights:
- Using branded spare parts and highlighting the importance of genuine parts to the consumers boost growth and profitability potential
- Electrolux branded refrigerator compressors very well received
- Spare part sales in Latin America increased by 28% in 2023
Aftermarket categories and services is a strategic growth area with high profitability for Electrolux Group. In 2023 the aftermarket business represented more than 7% of sales, a share which the Group intends to increase further in the years ahead. In Latin America, growth in sales of Electrolux branded spare parts shows the value of a trusted brand as the Group is enhancing its position in the market.
Today’s consumers expect more than high-quality appliances – they are expecting a positive experience throughout the life span of the products. Being truly consumer-centric, Electrolux Group’s innovation focus is designed to deliver not just an outstanding appliance, but a delightful, seamless consumer experience pre, at and post purchase throughout the use phase to enable lifetime value. Spare parts are, together with installation service, consumables, accessories, extended warranties and out-of-warranty repairs, targeted segments of the aftermarket.
Successful launch of Electrolux branded refrigerator compressors
A good example of the relevance to grow a branded aftermarket portfolio offering is the strong performance of Electrolux branded refrigerator compressors in Latin America during 2023. With the aim of delivering a further improved consumer experience, and in response to increased competition, Electrolux Group started to visibly brand the most important spare parts with the Electrolux brand to reassure consumers that their appliance is repaired with original parts. A multi-channel communications campaign supported the launch aimed at independent service providers, distributors, and consumers.
The initiative has been very well received by the targeted audiences. The Electrolux branded compressors have contributed to rapidly growing aftermarket sales in Latin America. Spare part sales increased by 28% in 2023, with branded compressors having an important contribution to the growth. It clearly shows how much consumers value original spare parts from a brand they trust. An average consumer star rating of 4.66 on a 5-point scale in 2023 reflects strong consumer feedback on major product launches in the refrigeration and freezer segment, where Electrolux has brand leadership in Latin America.
High brand recognition, a large installed base of major appliances and a strong omnichannel presence with direct-to-consumer sales are strengths that the Group is drawing on as it is enhancing its position in the aftermarket. Other key enablers are its deep consumer insights and strong expertise in appliances, as well as focus on lifetime value and complete consumer journey already in the innovation phase. The aftermarket business has a more than four times higher profit margin than the appliance business and long term, Electrolux Group aims to increase aftermarket sales to approximately 15% of Group sales.