Highlights:
- Strengthened aftermarket position to enhance consumer relations, drive brand loyalty and increase recurring sales.
- 4 times higher profit margin than the appliance business
- Dedicated team for advanced solutions for water filtration and ice making.
- 10 % average sales growth of water filters in North America during the last five years.
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 innovation focus has expanded to delivering not just an outstanding product, but a complete consumer experience and lifetime value. To be relevant throughout the consumer journey, an important part is to strengthen Electrolux position on the aftermarket.
On Electrolux Capital Markets Update, held on March 20, 2023, this was one of the main topics explored in detail. A more pronounced presence on the aftermarket presents several opportunities to further enhance consumer relations, drive brand loyalty and increase recurring sales. The aftermarket business also has a more than four times higher profit margin than the appliance business. Electrolux aims to increase aftermarket sales to approximately 10% of Group sales by 2025, from around 7% in 2022, and has a long-term ambition of approximately 15%.
Significantly increased sales of water filters
A notable example is the significantly increased sales on the aftermarket for water filters in North America. Refrigerators that provide clean and healthy water and ice are important to North American households. Accordingly, they want to feel confident that they are purchasing quality filters designed for their specific appliances.
Thus, in recent years Electrolux has increased its innovative focus on refrigerators’ water filtration systems and ice-making accessories with a dedicated team and state of the art laboratory working on advanced filtration solutions and ice-making. Based on thorough research on consumer behavior and through co-creation with target audiences, Electrolux has further enhanced the quality of the water filters, to eliminate harmful contaminates, and added features to remind the consumers of the filter replacement cycle.
Electrolux has also established new and efficient communication channels to reach consumers and to raise awareness of the importance to use the right filter for their appliance for optimal water taste and safety. At present, Electrolux receives about 2 million page visits per year to the water filter site and the year-over-year growth of visitors has been double-digit.
The targeted approach has resulted in an average of 10% annual sales growth of water filters over the last five years in North America. The successful growth of this water filter business has also entailed sustainability gains. This as increased use of clean water from refrigerators is estimated to have led to a significant decrease in the consumption of mineral water in plastic bottles.
The filter technology developed for North America has been extended to refrigerators sold across all regions.