Electrolux 2009 Annual Report Download - page 32

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Professional laundry equipment
Market trends
Requirements for professional laundry equipment vary between
users. For example, laundry specialists demand ergonomic prod-
ucts and solutions that reduce the risk of spreading infection
through soiled textiles. Laundry equipment for laundry rooms in
apartment houses or in laundromats must be so easy to use that
no manual is required. Irrespective of the use area, buyers are
demanding innovations that enable lower costs by reducing con-
sumption of energy, water and detergent and still maintain satis-
factory washing and rinsing performance.
Markets and sales channels
Professional laundry equipment is sold to laundry specialists such
as those that serve hospitals and hotels, and also directly to
apartment-house owners and local laundries. The global market
for this equipment in 2009 is estimated to have amounted to
approximately SEK 20 billion. Although demand declined sub-
stantially in recent years, the market for professional laundry
equipment has shown more stability than the market for food-
service equipment. The largest decline in 2009 was in Europe and
referred to specialists serving hospitals as well as to commercial
laundries.
The market for laundry equipment is less fragmented in com-
parison with professional food-service equipment. The five largest
producers account for approximately 40% of the global market.
The share of direct sales is greater for laundry equipment than for
food-service products, although there is a trend to more sales
though dealers, particularly for more standardized products.
The Group’s positions
Brands
In Europe, professional laundry equipment is sold under the
Electrolux brand. In 2009, Electrolux was also introduced as a
brand for such equipment in the US, where the Group’s products
were previously sold under the Wascomat brand through a dis-
tributor. The brand change will be facilitated by the high market
awareness of the Electrolux brand in the US as a result of the
launch of Electrolux-branded consumer products in 2008.
Products and market positions
Electrolux maintains a program for continuous development of
new products and laundry processes for lower energy consump-
tion and improved washing performance. The product offering
includes washing machines, tumble-dryers and ironing equip-
ment. Approximately 70% of sales refers to Europe, and 20% to
North America. The Group’s strongest positions are currently in
Europe for specialists serving hospitals and for commercial laun-
dries. Electrolux products are distributed through 19 sales com-
panies worldwide as well as through a global network of 150
independent distributors.
15
12
9
6
3
9
6
3
0
05 0706 0908
%
10,000
8,000
6,000
4,000
2,000
0
SEKm
Net sales
Operating margin
FOOD-SERVICE EQUIPMENT
Major markets
•Italy
•France
•Scandinavia
•AsiaandMiddleEast
Major competitors
•ITW/Hobart
•Manitowoc/Enodis
•Middleby
•AliGroup
LAUNDRY EQUIPMENT
Major markets
•Scandinavia
•Japan
•US
Major competitors
•Alliance
•Miele
•Girbau
Net sales and operating margin Markets and competitors
Share of operating income
13%
Share of sales
food service, 5%
laundry, 2%
Group sales of food-service equipment declined as a result of lower
sales volumes and operating income deteriorated. Sales of laundry
equipment were lower as a result of lower sales volumes. Operating
income improved on the basis of lower costs for raw materials, favorable
exchange rates, price increases and lower costs for production and
administration.
Professional Product’s share of Group sales and operating
income 2009
annual report 2009 | part 1 | business areas | professional products
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