Electrolux 2007 Annual Report Download - page 19

15
5
Million units
4
3
2
1
0
02 03 04 05 06 07
Growth of shipments of core
appliances in Australia
5
4
3
2
1
0
05 0706
%
10,000
8,000
6,000
4,000
2,000
0
SEKm
Net sales
Operating margin
Market demand for appli-
ances in Australia rose
during the year in com-
parison with 2006. Group
sales rose in comparable
currencies, mainly as a
result of market growth.
FactsNet sales and operating margin
38%
18%
Market shares
in Australia
core appliances
floor-care products
Consumer Durables Asia/Pacifi c
Three different markets
In 2007, the market for household appliances in the Asia/Pacifi c
region amounted to approximately SEK 270 billion. The market is
divided into three areas: Mature markets such as Japan, South
Korea and Australia, large and rapidly growing markets such as
China and India, and relatively small and rapidly growing markets
such as Vietnam and Thailand. The Japanese market is the largest,
with sales amounting to approximately SEK 51 billion annually. The
Australian market for appliances amounted to approximately
SEK 19 billion in 2007 and shows a high penetration for most appli-
ances. Growth in Australia is driven by increasing interest in inno-
vations, the environment and design.
There is no defi nite market leader in the Asia/Pacifi c region. In
China, the domestic company Haier is the largest producer, with
approximately 27% of the market, followed by several domestic
and international producers with relatively small market shares. In
Australia, Electrolux and Fischer & Paykel are the market leaders,
with market shares of approximately 38% and 17%, respectively.
LG of South Korea is the third largest manufacturer with a market
share of approximately 10%.
Increasing consolidation
There is no retail chain that covers the entire region. On the other
hand, there is a trend to increasing consolidation of retailers in
various countries. In China, the market is dominated by two large
domestic chains that specialize in electronics. International retail
chains still have a limited presence in China. In Australia, fi ve large
chains account for approximately 90% of the market.
Strong position in Australia
More than half of the Group’s sales in Asia/Pacifi c is generated in
Australia, where the Group has a leading position in appliances.
The Electrolux brand is positioned in the premium segment. The
Group’s other brands in Australia, Westinghouse and Simpson,
have strong positions, as well as Kelvinator within air conditioning.
For additional information about the Group’s operations in Austra-
lia, see page 33.
In Southeast Asia, Electrolux is the market leader for front-
loaded washers in Thailand, Vietnam, The Philippines, Indonesia
and Malaysia. This position is currently being leveraged to expand
into kitchen appliances. In China, Electrolux is one of a group of
international brands in the premium segment, while the other seg-
ments are dominated by domestic producers.
In 2005, Electrolux changed its business model in India. The
agreement with Videocon, one of India’s largest industrial groups,
includes a license to use the Electrolux brand until 2010.
Australia is Electrolux largest market for household appliances in the Asia/Pacifi c
region. In Southeast Asia, the Group is leveraging the leading position in front-loaded
washing machines in order to expand operations in kitchen appliances.
Good sales growth for appliances in Asia/Pacifi c. Operating income in
Australia and New Zealand as well as the entire South East Asia region
showed an improvement, mainly on the basics of previous restructuring.
Share of operating income
7%
Share of sales
9%
Consumer Durables Asia/Pacifi c and Rest of world’s share
of sales and operating income 2007
business areas | consumer durables | asia/pacifi c
CORE APPLIANCES
Major markets
• Australia
• China
Major competitors
• Fischer & Paykel
• LG
• Samsung
VACUUM CLEANERS
Major markets
• Australia
• South Korea
Major competitors
• Dyson
• LG
• Samsung
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