Electrolux 2007 Annual Report Download - page 18

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14
25%
68%
Market shares
in Brazil
core appliances
floor-care products
Consumer Durables Latin America
Fast market growth
The Latin American market for household appliances amounts to
approximately SEK 61 billion annually. Brazil and Mexico account
for approximately 40% and 20% of this market, respectively, while
Argentina, the third largest market, accounts for less than 10%. In
recent years, Latin America has shown high economic growth
rates and greater household purchasing power. In 2007, Brazil
showed a GDP growth of approximately 5%, which contributed to
a strong increase in demand for appliances.
The share of households with refrigerators and cookers is high
in Latin America. In recent years, sales of other major appliances
have shown strong growth. The Latin American market is rela-
tively consolidated, and the three largest producers account for
approximately 75% of sales in Brazil. Whirlpool is the overall leader
in the region on the basis of strong positions in the three leading
countries.
Rapid consolidation
Regional and local retailers are being consolidated rapidly.
Electrolux products are sold in Brazil through the major chains,
including the market leader Casas Bahia.
Almost 80% of sales in Brazil
The Brazilian market accounts for almost 80% of Electrolux sales
in Latin America. Sales in Brazil have grown rapidly in recent years
on the basis of innovative Electrolux-branded products. Electrolux
is now the second largest producer in the country, and the
Electrolux-brand has strong positions in all segments. In other
major markets such as Mexico and Argentina, Electrolux sales are
low, but increasing. For additional information about the Group’s
operations in Brazil, see page 34.
Electrolux sales in Latin America have grown rapidly in recent years. Brazil is the Group’s
largest market in Latin America, and Electrolux is one of the largest producers in Brazil.
The Electrolux brand has strong positions in all segments.
Group sales in Latin America rose strongly during the year mainly on
the basis of good market growth. Operating income in 2007 for the
operations in Latin America was the highest in the Group’s history.
Share of operating income
11%
Share of sales
9%
Consumer Durables Latin America’s share of sales
and operating income 2007
20
Million units
15
10
5
0
98 99 00 01 02 03 04 05 06 07
Growth of shipments of major
appliances in Brazil
10
8
6
4
2
0
05 0706
%
10,000
8,000
6,000
4,000
2,000
0
SEKm
Net sales
Operating margin
Industry shipments of
appliances in Brazil during
2007 rose by 17% over
the previous year. Sales
volumes for Electrolux
rose by 23%.
FactsNet sales and operating margin
business areas | consumer durables | latin america
CORE APPLIANCES
Major market
• Brazil
Major retailer
• Casas Bahia
Major competitors
• General Electric
• Mabe
• Whirlpool
VACUUM CLEANERS
Major market
• Brazil
Major retailer
• Casas Bahia
Major competitor
• SEB Group
14