The Latin America business area is investing in automation and modularization to reduce cost and complexity and to sustain strong market positions through a sharpened product offering. 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, dominated by a small number of major manufacturers.
- Market penetration for built-in products and air-conditioners is low but increasing.
- Consumers show increasing interest for energy and water efficiency and other sustainability related topics.
- In 2020, Electrolux had a 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.
- The introduction of multidoor refrigerators in 2019 through leveraging modularized global platforms contributed to the business area´s strengthened position in premium segments by 12pts in 2020, y-o-y.
|Continue to strengthen go to market capabilities
- Established branded webstores in key markets such as Argentina and Chile in 2020. Adding to already established branded web stores in Brazil.
|Improve cost-efficiency competitiveness
- Investments in manufacturing re-engineering 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.
Read more about the re-engineering program
Read more about the Curitiba investment
|Sustain strong market positions through a sharpened offering
- Increased perceived quality in terms of Service call rate of 3.1% in 2016 to 2.5% in 2020 and improved consumer star ratings.
- In 2020, the Continental brand in Brazil was re-launched to strengthen the value market proposition and focus the Electrolux brand on the premium market.