Electrolux in a changing world
External influences
The world in which we operate is constantly changing due to the influence of global megatrends, which create challenges for our business – but also bring about enormous opportunities. Our sustainability framework – For the Better – helps us manage these trends, and ensure we contribute toward international sustainable development objectives such as the UN Sustainable Development Goals
Megatrends
Demographics
Global demographic trends – such as population growth, the growing middle class, an aging population and urbanization – are increasing the demand for home appliances, which puts more pressure on natural resources. In the next 15 years, another billion people are expected to buy their first refrigerator.
Implications for Electrolux
- Significant growth potential in emerging markets
- Continued need to improve the environmental performance of products
- Growing importance of the silver-haired consumer group and the increasing number of smaller households
- Potential for new business models, e.g. shared ownership
Climate & resources
The need to reduce greenhouse gas emissions, and adapt to a changing climate and resource limitations, will drive appliance manufacturers toward ‘circular business’ models that promote resource efficiency, cleaner chemistry and waste reduction.
Implications for Electrolux
- Continued need to improve the environmental performance of products
- Pressure to reduce water consumption in areas with water scarcity
- Competition for some metals and minerals
- Growing importance of the circular economy
- Expectations to go beyond chemical legislation
Technology
New technologies are scaled rapidly and globally, with purchasing decisions increasingly influenced by online information and social media. The Internet of Things (IoT) promises to connect billions of products in the near future.
Implications for Electrolux
- Greater consumer empowerment and awareness requires transparency and sustainable business practices
- Digitalization will drive the next wave of operational efficiency, including closer integration with suppliers
- Connectivity offers opportunities for new business models that result in better resource efficiency
- IoT enables a lifelong relationship between producers and consumers, but requires high standards of data security and privacy
Electrolux
Electrolux shapes living for the better by reinventing taste, care and wellbeing experiences that make life more enjoyable and sustainable for millions of people. Through our brands, including Electrolux, AEG and Frigidaire, we sell more than 60 million household and professional products in more than 150 markets every year.
S:t Göransgatan 143
SE-105 45 Stockholm, Sweden