Electrolux 2011 Annual Report Download - page 58

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Protable and fast-growing operations
Electrolux in Southeast Asia
annual report 2011 strategy
1Investments in a strong brand…
In Southeast Asia, price has traditionally played a greater role in
purchasing decisions than brand, but the rapidly emerging middle
class in cities is increasingly choosing products in the premium seg-
ment, and preferably from European producers. These consumers
adapt fast to new technology. Large products such as refrigerators
are often placed in living rooms, so pleasing design is important.
The Group’s strategy has always been to launch innovative products
in the higher price segments under the Electrolux brand. As a result,
the Group now holds a strong position in the premium segment in all
countries throughout the region, and a brand that is associated with
European quality.
2…more innovative products adapted to the needs of
Asian households…
The innovative products that Electrolux has developed for the specific
needs of Southeast Asian households in regard to temperature,
humidity and cuisine have led to substantial growth and increasing
market shares. Electrolux has focused on a limited and strong offering
in front-load washing machines, for example, and built-in appliances
for the kitchen. The platform created by these offerings provides
more scope for a broader product expansion in the future. In 2012,
Electrolux will launch new, innovative refrigerators, top-load washing
machines and free-standing cookers in the premium segment.
Electrolux has been active in the Southeast Asian market since the end of the 1970s,
primarily through sales of vacuum cleaners, but also through sales of appliances via
distributors and products for professional users. The operations have grown in pace with
the rapidly expanding economies in the region.
The Electrolux brand was positioned in the premium segment from
the very start. The focus has been on establishing a strong position
in a range of market niches in order to create a platform for broader
expansion. The market-leading position in front-load washing
machines that Electrolux established at an early stage has facilitated
growth in kitchen appliances. In 2011, sales increased by approxi-
mately 10% with an operating margin of 12%. Through a strong
brand, products adapted to the specific needs of the region and
effective marketing and distribution, the Group's intention is to grow
rapidly with high profitability in Southeast Asia. 090807 10 11
2,500
2,000
1,500
1,000
500
0 0
SEKm
15
12
9
6
3
%
Operating margin
15
12
Net sales
Net sales and operating margin, Southeast Asia
In 2011, Electrolux
sales in Southeast
Asia rose by about
10%. The operating
margin was 12%, the
highest figure ever.
This includes all oper-
ations, consumer dur-
ables and profes-
sional products.
54