Electrolux 2008 Annual Report Download - page 9

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Kitchen products,
share of Group sales
57%
Dish
Cold (refrigerators, freezers)
Hot (cookers, hobs, ovens)
49%
39%
12%
Product categories,
share of kitchen products Global interest in cooking
Almost every third consumer worldwide is actively seeking new
ideas and information about food and cooking. Following from
this, there are good growth opportunities in the long-term for pro-
ducers of innovative and easy-to-use kitchen appliances.
Source: GfK Roper Consulting, 2008.
Western Europe
Central Europe
North America
Latin America
40
30
20
10
0
%
Developed Asia
Developing Asia
Electrolux kitchen products
Consumer trends
As one of the most frequently used rooms in the home, the kitchen
is where the family socializes and prepares food together, often
with guests. Consequently, demand for kitchen products that are
quiet and user-friendly is increasing. Design is becoming increas-
ingly more important, as the appearance of kitchen products
reflects the owners’ personalities and values. Consumers also
prefer products that are favorable for the environment. Such prod-
ucts feature low consumption of water and energy, are manufac-
tured of sustainable materials, and can easily be recycled.
Interest in preparing food is increasing simultaneously with a
strong trend to health and wellness. Consumers are demanding
products that preserve nutritional ingredients and freshness of
food, both before, during and after cooking, for quickly prepared
daily meals as well as more advanced culinary creations.
Market
Long-term stable demand…
Kitchen products are replaced immediately when they break
down, which contributes to relatively stable long-term growth. In
recent years, growth has been highest in the high- and low-price
market segments. In the high-price segment, consumers prefer
products with low energy consumption, new features and
improved design, and they often replace functioning kitchen prod-
ucts with newer models.
…with higher sales in growth markets…
Demand for low-price kitchen products is rising. This develop-
ment is particularly strong in growth markets, where rising living
conditions show strong improvement. In some of these countries,
especially in Latin America and Asia, demand for more exclusive
kitchen products is also rising as a middle class with greater pur-
chasing power emerges.
…and increasingly more built-in products.
The trend to built-in kitchen appliances is increasing worldwide,
and is particularly strong in Europe, the Middle East, Southeast
Asia and Australia. Kitchen specialists account for a large share of
sales of built-in products, which means that kitchen cabinets and
appliances combine to create a homogenous and harmonius
impression. As a rule, profitability is higher for built-in appliances
than for free-standing products.
Electrolux kitchen products
Market position
Electrolux maintains substantial market shares for all major kitchen
appliance categories. For built-in products, Electrolux has rein-
forced the position in recent years through cooperation with lead-
ing producers of kitchen furnishings. The Group’s products are
well-represented among the most energy-efficient product cate-
gories.
Electrolux kitchen appliances have a considerable global market share and a strong
position among the leading energy-efficient products. Kitchen products account for
more than half of Group sales.
Consumer Durables
annual report 2008 | part 1 | product categories | consumer durables | kitchen
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