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
- 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.
- 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.
Actions and execution
|Strengthening product portfolio in core categories|
|Accelerating growth by expanding category presence in key markets and entering new markets|
|Drive expansion through new channels, such as project sales and D2C|
|Reinforce the Electrolux brand positioning and leverage AEG in selected markets.|
|Invest in new skills and technologies to create an even more efficient organization to support growth|