Electrolux 2008 Annual Report Download - page 39

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The premium segment in the North American
market shows growth and high margins. Histori-
cally, it has also been the segment that recovers
fastest after a recession. The substantial decline
in sales of appliances in the US in recent years
has stimulated interest among retailers for new
products with attractive design and innovative
functionality.
Retailers have also shown strong interest in
new Electrolux-branded appliances, and the pro-
ducts are available on more retailer floors than
Growth potential in the premium segment
expected. A strong global brand such as Elec-
trolux, with its European heritage, has priority
among retailers when the economic situation
makes consumer purchasing behavior more
cautious.
Achieving a significant position in the North
American premium segment is an important
part of the Electrolux strategy for profitable
growth.
ducts. The comprehensive launch of appliances in Europe in 2007
comprised a large share of built-in kitchen appliances, which con-
tributed to reinforcing the Group’s position within kitchen suppli-
ers. Electrolux is a leading global producer of built-in products,
which is an advantage as the major kitchen suppliers expand their
operations.
Growth through complementary acquisitions
In addition to organic growth, there are opportunities for Electrolux
to grow through acquisitions. Top priority is given to complemen-
tary technology, products and brands that can help Electrolux
increase market shares in the high-price segments.
The Group’s product-development process can lead to growth in
the market for a specific product as new functions are developed,
as well as to the emergence of a completely new product cate-
gory. Electrolux Ergorapido created the new category of cordless
vacuum cleaners for lighter cleaning, and satisfied a need that
exists in all markets. More than 2.8 million Ergorapido units have
been sold to date.
Higher sales through kitchen suppliers
Kitchen specialists in Europe, Australia, the Middle East and Asia
account for a growing share of the dealer network. Electrolux can
increase sales through these channels on the basis of a strong,
secure brand, good design and the ability to offer innovative pro-
35