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The business area continues to invest in premium product innovation to improve the product mix in key categories and drive profitable growth throughout the region. In Australia, which accounts for about half the business area’s sales, successful new product range launches under the Electrolux and Westinghouse brands have contributed to profitable growth. Electrolux has a strong market position in Southeast Asia, particularly in front-load washers. The business area has modern manufacturing capabilities in Rayong, Thailand, with economies of scale in low-cost locations. About 80% of the products sold in the region are produced in Rayong, Egypt and South Africa.

Market and Position 

Mature markets

  • Australia, New Zealand, Japan and South Korea are mature markets with high penetration.
  • Design, innovations and water/energy efficiency drive demand in Australia and New Zeeland, while small living spaces in Japan and South Korea drive consumer demand for compact products.
  • Electrolux has leading market positions in core appliances in Australia and New Zealand, especially in cooking, and leading positions in floor care products in Australia, Japan and South Korea.

Growth markets

  • Southeast Asia is characterized by emerging economies, rapid urbanization, small living spaces and the expanding middle class.
  • Low product penetration in Africa, although the market is growing with increasing household purchasing power.
  • Electrolux has strong market positions in targeted segments in Southeast Asia, especially front-load washers.

Strategic focus

Actions and execution

Strengthening product portfolio in core categories
  • Targeted growth especially in dishwasher and dryer categories. ​
  • Investing in multiple product categories for the Egyptian market. ​
  • Strengthening R&D organization within  air care to accelerate growth.
Accelerating growth by expanding category presence in key markets and entering new markets
  • Category expansion in several markets such as induction hobs launched in 2020 in Korea and a new multidoor refrigeration range to be launched in Vietnam in 2021.
Drive expansion through new channels, such as project sales and D2C
  • Currently investing in strengthening D2C across Vietnam, Thailand, Japan and Egypt. Strong 2020 y-o-y growth in D2C.​
  • Project sales focus in Australia/New Zealand and China.
Reinforce the Electrolux brand positioning and leverage AEG in selected markets.
  • Re-designing 1,000+ stores across the region to reinforce the Electrolux brand image.​
  • Double digit AEG brand growth in China in 2020. ​
Invest in new skills and technologies to create an even more efficient organization to support growth
  • Implementing new common IT systems across the business area. ​
  • Launched recruitment plan to support growth ambition.

Net sales and operating margin