Electrolux 2005 Annual Report Download - page 6
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Please find page 6 of the 2005 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Business environment
Virtually all households in Western
Europe and North America have a
refrigerator, a cooker and a washing
machine. When a product reaches the
end of its useful life, it is immediately
replaced by a new appliance. Demand
for the Group’s products in these mar-
kets is therefore stable. In other parts
of the world, the total market is grow-
ing as new consumers improve their
living standards.
But demand in Western Europe and
North America is also changing. In par-
ticular, kitchen equipment is increas-
ingly being replaced more often when
innovative alternatives are available on
the market. In addition, the average
family is becoming smaller, so that the
number of households is increasing.
This means that demand is growing
faster than the population.
Consumers are spending more
money on their homes, which are tak-
ing on greater significance for them,
partly as an expression of their person-
ality and their lifestyle. In recent years
the share of disposable income spent by
consumers on their homes has doubled.
The kitchen has developed from a
place where food is prepared to the
center-point of the home. Kitchen
appliances are playing a more impor-
tant role, not only functionally but also
aesthetically. Perceptions of food-
preparation are changing – instead of
a daily chore, it has become a hobby
that requires the right equipment.
Changing consumer preferences create
new opportunities
Shipments of core appliances in
Europe and US
Millions of units
0
20
40
60
80
100
120
140
96 97 98 99 00 01 02 03 04 05
The market for core appliances in Europe and the US
shows stable growth.
Europe, excl. Turkey US