Whirlpool 2003 Annual Report Download - page 24

Whirlpool Asia faced a number of regional challenges in 2003, from
SARS to political and economic uncertainty in several markets. The
region operation reported sales of $416 million, a 6.6 percent increase
from 2002. Operating profit declined for the year, reflecting the
economic conditions and market price pressures.
The company’s operations in China and India, Whirlpool’s largest
regional markets, continued to make deeper distribution inroads in
2003 into the countryside from each country’s urban hubs, thanks to
enhanced partnerships with key retailers. The company also retained its
No. 1 position in India for refrigeration products.
Whirlpool’s customer-driven strategy was reinforced with an array of
new product launches, which helped to spur sales. More than 50 new
Asian-styled refrigerators, clothes washers and microwave ovens were
introduced across the region, some of which were highlighted in an
advertising campaign that won a prestigious Emvie Award in India for
Excellence in Brand Advertising.
One of the most outstanding product success stories for the
company in 2003 was the launch of the Whirlpool Symphony frost-free
refrigerator. Manufactured in Brazil, Whirlpool Symphony was cus-
tomized for the Asian market.
Another success was the Whirlpool Whitemagic Stainwash, the only
clothes washer on the Indian market that can completely remove
common household stains without hand scrubbing. Another unique
Whitemagic Stainwash washer benefit for this Asian market is that it is
internationally certified by Woolmark, the global authority on wool, as
safe for the most delicate of fabrics.
Also first to India is the Whirlpool MagiCook 22Gsi with 6th Sense
steam function, the market’s only microwave oven with the capability
to steam cook. The oven’s 6thSense fuzzy logic features take guesswork
out of cooking by sensing the temperature and humidity of food items
to establish precise cooking times. These features also permit steaming
to prepare many Indian delicacies and crisping for pizzas and pastries.
Last year, region operations in India and China became increasingly
important to the company’s overall global operating platform. India, for
example, increased its year-over-year exports by 20 percent and
expanded the number of markets to which it exports. Whirlpool China
continues to manufacture the bulk of the company’s microwave ovens
for world markets. China also is fast becoming an integral supply
source for the company’s global procurement activities.
Whirlpool Asia expanded its product development capabilities with
the opening of three new technology centers that support regional and
global products involving refrigeration, air conditioning and fabric care.
The new centers extend the company’s worldwide network of
integrated technology resources.
Outlook
For 2004, the company expects to drive both revenue growth and
operating margin expansion in the region. The improvement is
expected to be driven by exports to the company’s global sales networks,
and increased consumer demand for Whirlpool brand products in
China and India.
Asia Operating Review
Mark Hu
Executive Vice President,
Whirlpool Asia
The Whirlpool Whitemagic
Stainwash stands out as India’s
only automatic washer that
completely removes stains
without hand scrubbing.
The innovative style and
function of the Whirlpool
Symphony frost-free refrigerator
captures consumer enthusiasm in
Asian markets.
■In partnership with Shanghai’s Jiaotong University, Whirlpool China
established a Whirlpool Scholarship Fund to support talented students
who are interested in pursuing scientific studies at the university.
■The Whirlpool Whitemagic Stainwash washer was internationally certified
by Woolmark Company for the safe cleaning of the most delicate fabrics.
Woolmark is the world’s leading wool textile organization.
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