Electrolux 2007 Annual Report Download - page 9

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Electrolux köksprodukter
Konsumentprodukter
Kitchen products,
share of Group sales
58%
Dish
Cold (refrigerators, freezers)
Hot (cookers, hobs, ovens)
49%
39%
12%
Product categories,
share of kitchen products
Kitchen appliances in European
households
Electrolux kitchen products
The market
Stable demand
In 2007, global demand for kitchen products rose. The rate of
growth in demand in Western Europe and North America has
been rather stable over many years, irrespective of the business
cycle. One important reason is that kitchen appliances are
replaced immediately when they break down. Although quality
and thus product lifetimes have improved continuously, there is a
trend that appliances are being replaced at an increasingly faster
rate. This is because consumers prefer the new and more innova-
tive products that are being launched continuously. In emerging
markets, demand is growing as more people can afford modern
kitchen appliances.
Growth in premium and low-end products
In recent years, growth has been greatest in the premium and
low-end market segments. The increased importance of the
kitchen in the home has stimulated demand for premium prod-
ucts. Greater global competition between appliance manufactur-
ers and retail chains has led to an increase in sales of low-end
products to a steadily expanding customer base.
Profi table built-in products
Kitchen appliances are either stand-alone or built-in. The trend to
built-in appliances is increasing and shows strong growth particu-
larly in Europe and Australia. Manufacturers of kitchens for house-
holds are selling them with all appliances included. Sales of built-in
units often involve higher prices and profi tability for producers of
kitchen appliances.
Consumer trends
The kitchen is one of the most important areas in the home, •
and also the most used. It is not simply a place for preparing
food, but for all forms of socializing, which requires appliances
with low noise levels. Today’s kitchen is also intended to refl ect
the owners’ lifestyle and has become a room that is willingly
displayed to visitors.
Preparing food is no longer simply a weekday chore, but has •
become a hobby that calls for special equipment. This leads
to greater emphasis on design, user-friendliness and fl exibility.
Consumers also want appliances with functions that can be
used logically and intuitively, without the need for consulting a
manual.
Strong worldwide trends for health and wellness have affected •
demand for modern kitchens, which have to be easy to clean
and ergonomically designed. Vegetables and other perish-
ables must be kept fresh, and prepared so that nutrients are
preserved.
Environmental considerations are growing in importance for •
consumers. In addition to appliances with low water and
energy consumption, consumers are demanding climate-
smart options, e.g., products that preserve foodstuffs so that
nothing has to be thrown away, as well as alternatives to bot-
tled, carbonated water.
Electrolux has a comprehensive range of kitchen appliances as well as strong market
positions in most parts of the world. Cookers and ovens are among the Group’s most
profi table kitchen products.
Consumer Durables
Less than half of the Euro-
pean households have a
freezer and a dishwasher.
Growth in refrigerators is
mainly driven by innova-
tions and reduced energy
consumption.
Source: Rielaboration of Nvsion
penetration rate (European
average weighted with house-
holds dimensions from GfK
Europanel, 2006).
Western
Europe
Eastern
Europe
100
80
60
40
20
0
Freezer DishwasherRefrigerator
%
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product categories | consumer durables | kitchen