Electrolux 2002 Annual Report Download - page 11

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The European appliance operation continued to perform well
in 2002. Sales showed good growth in Eastern Europe, and
for key accounts as well. Income and margin improved,
and we strengthened our market share.
On-going restructuring was implemented without major
disruptions, and generated the expected savings. Manufacturing
productivity improved over the previous year.
The production structure in Europe will gradually be
consolidated to a few master plants with R&D and administrative
functions, as well as a number of smaller, leaner units.
We are continuing to cut back the number of product
platforms, which will be more than halved in the next few years.
This will reduce the number of product variants and make
production less complex. Fewer platforms also mean less tied-up
capital, lower R&D costs and shorter time-to-market for new products.
Over the past few years we have focused strongly on improving the supply chain, increasing
product availability, and reducing costs and working capital for our customers as well as for the Group.
Collaborative forecasting involving Electrolux and retailers is increasing, and it enables production
planning to be better aligned with targeted retail sales.
In 2002 our European appliance operation received four prestigious awards from leading
retail partners in acknowledgement of our best-in-class performance.
During the year we also made progress in consolidating our brand portfolio in Europe.
Double-branding of several local brands with the Electrolux brand will start in 2003.This process will
be supported by increased efforts in product development based on consumer research.
I am confident that all these
efforts will strengthen our position
as the leading appliance company
in Europe.
   
…and we’re strengthening our
position in Europe.
Retail structure in Europe
Major appliances
The graph shows the total market share of the
10 largest retailers of major appliances in each
country.
%
0
20
40
60
80
100
Norway*
Denmark*
UK
The Netherlands
France
Sweden*
Belgium
Italy
Germany
Austria
* Includes buying groups.

Supplier of the
Year 2000, 2001
and 2002

Category Partner
of the Year 2002

Supplier of the
Year 2002

International
Supplier of
the Year 2002
During the year the European appliance operation received several
prestigious awards from leading retail partners for best-in-class service.