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Ovens and microwaves

Growing profitabilty in premium brands

Europe

Business area Europe continuously focuses on strengthening its product offering through consumer centric innovation, investing in brand building, and maintaining strong cost efficiency. This has resulted in earnings resilience and improved margins as well as strengthened value market positions in the two targeted innovation areas built-in kitchen and premium laundry under the premium brands Electrolux and AEG. The business area has a lean and efficient manufacturing base with a high degree of automation and more than 60% of production capabilities in low-cost regions.

Market and Position

Western Europe

  • Mature and fragmented market with widely varying consumer needs between countries and many manufacturers, brands and retailers.
  • Electrolux is the second largest player with a value market share in core appliances of 17% and leading position in the Nordics and Italy with 39% and 22% value market share respectively in 2020.
  • Electrolux has a strong position in the targeted segments built-in kitchen and premium laundry.

Eastern Europe

  • A growth market with a significantly lower penetration rate than Western Europe though a large market for replacement products is emerging.
  • Dominated by Western manufacturers.
  • Electrolux holds a leading position with a value market share in core appliances of 14% in 2020.

Strategic focus

Actions and execution

Continue growth of built-in kitchen and premium laundry position​s
  • +0.5pts value market share for built-in kitchen, mainly driven by the launch of the new Electrolux branded range (2020 vs 2017)​. ~22% value market share in 2020.
  • +2.2pts value market share for premium laundry (2020 vs 2017)​. ~15% value market share in 2020.
  • 5% sales growth for Electrolux branded built-in kitchen with higher margins (YTD Sep 2020, y-o-y).
Further build on brand desirability
  • New built-in kitchen campaign in 2019 successfully built key brand attributes for the Electrolux brand (innovative, sustainable, Swedishness). Link to case
  • Increased brand recognition in Poland in 2020 to top 3 consideration with the Electrolux brand.​
  • Continue to improve top 3 consideration through on-going and focused key market campaigns.
Accelerate e-commerce focus
  • Strong growth in B2B both for pure players (+35%*) and for omni-channel (+15%*).​
  • D2C platform live in 2021 in many markets. ​
  • Transforming into a consumer and service driven supply chain model. Received the European Supply Chain Management Award in 2020. 

*Q3 2020, y-o-y

Boost aftermarket sales
  • Aftermarket net sales growth +3.8%**, with strong growth in the segment ‘out of warranty repairs‘ driven by the successful fixed price repair concept.  
  • Fully leverage sales opportunities through contact center agents and service technicians.​
  • Strengthen position through data-driven consumer relationship and knowledge management system.​

**Sep 2020 rolling 12-months, y-o-y 

Develop modularized products in automated production

Execute on the re-engineering programs to generate:​

  • Increased innovation speed.​
  • Relevant features at a lower cost.​
  • Best-in-class design and quality.

Read more 

Net sales and operating margin