Electrolux 2006 Annual Report Download - page 35
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Present
Accumulated sales volumes of Ergorapido
0
Jun
05
Aug
05
Oct
05
Dec
05
Feb
06
Apr
06
Jun
06
Aug
06
Oct
06
Dec
06
800,000
600,000
200,000
1,000,000
Number
400,000
Coordinated global marketing has
been implemented in order to sell the
Ergorapido vacuum cleaner on
more markets. Sales have risen in
every quarter since the launch.
Ergorapido is not a substitute,
but is often purchased as a
second vacuum cleaner mainly
for use in the kitchen. The
attractive design means that
the user can leave it in view.
Successful launches of innova-
tive products also included the
Twinclean and Ultra Silencer
vacuum cleaners.
Hungary, but the
greater part of pro-
duction has been out-
sourced to companies
in China.
The transfer of the Group’s
production to low-cost coun-
tries has reduced both costs
and tied-up capital. Moving pro-
duction from Germany to Hungary
has cut costs in Europe by more than 20
percent. Labor costs have been drastically
reduced, while transportation costs have
increased somewhat. The capital tied up
in the fl oor-care product operation has
been reduced on the basis of fewer own
plants and a greater share of outsourced
production.
Fixed assets
have been halved
since 2002. The
price of vacuum clean-
ers has declined on average by
approximately 20 percent since 2002. Price
levels have stabilized in recent years and a
slow upturn in prices has begun. In Europe,
the average price is rising as demand for
bagless vacuum cleaners increases and
consumers tend to prioritize quality over
low price.
In order to shorten the time required
to develop new products that respond to
consumer needs, Electrolux has invested
heavily in improving the internal process
for product development
All development work
within the Group is
now based on insight
into how consumers
think, feel and act when
they use the products. Devel-
oping a new vacuum cleaner takes about
18 months. All the Group’s new vacuum
cleaners are developed through the new
consumer-focused product development
process, which is global from start to fi nish.
Electrolux is one of the world’s largest
producers of vacuum cleaners, and the
only one with a strong global distribution
network.
from low-cost countries will increase
for all product categories.
A process for consumer-focused
product development has been intro-
duced for core appliances. These take
longer time to develop than vacuum
cleaners, and the Group is now launch-
ing the fi rst new and innovative appli-
ances based on consumer insight.
The next few years will see a con-
tinuous fl ow of new products. Manu-
facture will be based on global product
platforms, and the goal is to reach the
same share of successful launches as
for vacuum cleaners.
The profi table transformation of the
operation in fl oor-care products points
the way for Electrolux in other areas. A
new Electrolux has taken shape.
The refrigerator Source and the fridge Glacier. 31