Electrolux 2004 Annual Report Download - page 9
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Business environment
High productivity
in our industry
Sharper competition is a
driver for greater efficiency
in both production and
distribution. Productivity in
the appliance industry has
steadily improved over the
years and enabled offering
consumers better products
at lower prices. This trend is
now being accelerated by
globalization of production
and purchasing. Another
contributing factor is the
reduction in the number of
product platforms and
variants as consumer prefer-
ences in different countries
and regions become increas-
ingly more similar.
Fewer and bigger retailers
The large modern retail chains are growing
and taking market shares from traditional
dealers. They are also expanding geographi-
cally, becoming more international, and
consolidating their purchases to fewer
producers. The flow of products between
producers and retailers is also becoming
more integrated.
Large volumes and efficient flows often
enable us to serve these customers at lower
cost. The decisive factor for successful
relations with retailers is our ability to adapt
our service to the needs and desires of
different types of customers.
Every year, Electrolux invites design schools from around the
world to participate in its Design Lab competition, where
students design appliances for the not-too-distant future.
Among the finalists this year were the UK's
Power Grid Table, which uses movable induction stove units
to turn a table into a cooking center, and the combined Czech
and Slovak entry Washman, a combination hamper, washer
and dryer.
% 5 10 15 20 25 30 35 40 45 50
Dealer &
Other
Home
Depot
Best Buy
Lowe’s
Sears
In the US the three largest retail chains account for
almost 60% of sales of major appliances. The graph shows the total market share for the ten
largest retailers in each country.
1997 2002 2004
Market shares for leading
retailers in US Retail structure in Europe
%
Major appliances Major appliances
90
80
70
60
50
40
30
20
10
0
Netherlands
UK
France
Switzerland
Austria
Belgium
Germany
Spain
Italy
Portugal