The Latin America business area is investing in innovation and brand building to achieve a sharper product offering and a stronger market position. In addition, ongoing investments in modularization, automation and digitalization accelerate time-to-market, reduce complexity and drive cost efficiencies. Local manufacturing is a competitive advantage as several of the main markets, such as Brazil and Argentina, are protected by customs tariffs. A growing middle class provides good opportunities for long-term growth. Sales are driven through well-established brands including Electrolux and Continental in Brazil, Fensa and Mademsa in Chile, Electrolux and Gafa in Argentina, and Frigidaire in the northern part of the region.
Market and Position
- Brazil is the largest appliance market in the region, predominantly dominated by a small number of major manufacturers.
- Market penetration for built-in products and air-conditioners is low but increasing.
- Consumers are showing increasing interest in energy and water efficiency and other sustainability-related topics.
- In 2021, Electrolux had an estimated value market share of about 29% in Brazil, Chile and Argentina combined, with Electrolux brand leadership in the refrigeration and freezer category.
||Actions and execution
|Driving sustainable consumer experience innovation
- Largest player in the attractive fast-growing market for high-capacity Top Load Washing Machines with nearly one-third of the market. Deep consumer insight resulted in profitable growth in this category by 50% in the last five years.
- Continued investment in multidoor refrigerators by leveraging global modularized platforms contributed to further accelerate the business area to strengthen its position in the premium segments by reaching almost 50% value market share in 2021, +6 pts y-o-y.
- Strong focus on built-in products mainly in Brazil, with portfolio renewal to deliver relevant innovation to consumers.
|Continue to strengthen go to market capabilities
- Expanded branded webstores to all markets in 2021. Adding to already established branded web stores in Brazil, Argentina and Chile with high growth.
|Improve cost-efficiency competitiveness
- Investments at the refrigerator facility in Curitiba and the cooking facility in Sao Carlos, both in Brazil, to reduce costs and complexity, while improving the product offering.
|Sustain strong market positions through a sharpened offering
- Increased perceived quality in terms of Service call rate of 2.1% in 2021 compared to 3.1% in 2016 and improved consumer star ratings.
- After a relaunch in 2020, the Continental brand strengthened its value proposition, thereby increasing its market share in 2021, while the Electrolux brand remains focused on the premium market.