Consumer power

Greater consumer awareness and access to information on prices, offers, product characteristics and consumer reviews online, via social media and through mobile access, increasingly empowers consumers. 93% of consumers say online reviews impact their purchase decisions1) and 63% of consumers are willing to pay up to 15% more for a better experience2). This makes developing products that offer outstanding consumer experiences more important than ever to allow premium pricing and greater competitiveness. Spending more time at home due to the coronavirus pandemic has meant that people place even more value on high-quality appliances with relevant features and benefits.

Consumers are increasingly choosing brands with a purpose that they feel matches their own values. 80% of consumers prefer buying from and into the brands whose actions align with their beliefs and values3).

Strategic focus: Electrolux experience innovation and brand/product focus are specifically tailored to appeal to targeted consumer segments and needs.

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Driving innovation

Digitalization

Digitalization enhances consumer power, while enabling increasingly advanced products, and greater productivity and flexibility in industrial operations. Since the pandemic, 69% of consumers are shopping more online3). The use of the internet to research consumer electronics and appliances increased by 24%, and online sales by 15% at the start of the pandemic, where consumers over the age of 60 played a key role in driving digitalization4).

Strategic focus: Electrolux has a strong focus on consumer experiences, with connectivity and productivity as key value drivers. R&D investments focus on digitalization.

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Driving innovation – Innovative product portfolio
Increasing efficiency

Sustainability

Sustainability is becoming more important for consumers. Two-thirds of global consumers are willing to pay more for sustainable products5) and 90% of consumers are willing to pay more for a brand that gives back to society3). Almost 3 of 4 global consumers think it is more important than before the pandemic for companies to behave more sustainably6). A similar proportion say the same about reducing their personal carbon footprint.

Authorities around the world are also putting increasing demands on manufacturers to develop and offer more sustainable products, such as product energy efficiency requirements.

Strategic focus: Electrolux is a sustainability leader in the appliance industry, demonstrated by numerous third-party recognitions, and has a clear strategic sustainability agenda.

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Driving innovation – A sustainability leader

Global scale

The industry is consolidating into a handful of global actors as global scale is required due to the increasing pace of innovation and investment requirements.

Strategic focus: Electrolux has the global scale, technology, competence and balance sheet to be one of the drivers of this consolidation.

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Solid balance sheet – Financial strength

Growing global middle class

The expanding global middle class drives market growth in Africa, the Middle East, Eastern Europe, Latin America and Southeast Asia. Emerging markets represent a potential universe of over 6 billion consumers.

Strategic focus: Electrolux is a global business with a local presence. It has extensive consumer knowledge and brands targeting growing product categories in regions with a rapidly growing middle class.

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Driving innovation –  Strengthen emerging market position
Increasing efficiency – Global presence and deep local understanding

 

1) Survata for Podium (2017). State of Online Reviews.
2) Simon-Kucher & Partners (2019). The Trend Radar.
3) KPMG (2021). Me, my life, my wallet.
4) Euromonitor International (2020). The Digital Consumer Journey: Who Is Behind The Crisis-Inspired E-Commerce Surge.
5) Eco Ethical Report (2019).
6) Global WebIndex (GWI) (2020). Coronavirus research.