Electrolux 2013 Annual Report Download - page 27

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Growth markets
Africa, Middle East
and Eastern Europe
Latin America Southeast Asia and China
The level of development varies substantially
between countries. The geographic spread also
plays its part in hindering manufacturers and
retailers from capturing substantial market
shares. Penetration is low in Africa, but growth
is high in line with increasing household pur-
chasing power. Eastern Europe is dominated by
Western manufacturers and a large market for
replacement products is emerging.
Growth is driven by a fast-growing middle
class, which primarily demand basic cookers,
refrigerators and washing machines. Brazil
accounted for about half of total sales in the
market and the three largest manufacturers
(Electrolux, Whirlpool and Mabe) accounted for
about 70% of the appliances market. Consid-
erable growth potential exists for appliances,
such as washing machines, in pace with
increasing purchasing power and higher
demands for energy and water efficiency.
The market is characterized by robust eco-
nomic growth, rapid urbanization, small living
spaces and a rapidly expanding middle class.
China is the world’s largest market for house-
hold appliances, in terms of volume. The
domestic manufacturers Haier Group and
Midea dominate in China. Similar to other
growth markets, consumers prioritize refriger-
ators, washing machines and air-conditioners
as prosperity rises. Energy-efficient products
are growing in popularity.
Market * demand for core appliances Market demand for core appliances Market demand for core appliances
Market value Market value Market value
Product penetration Product penetration Product penetration
Electrolux competitors
Bosch-Siemens • Indesit • Whirlpool •
Samsung • LG Electronics • Dyson
• Ali Group • Rational
Electrolux competitors
Whirlpool • Mabe • LG Electronics •
Samsung • Daewoo • SEB Group • Black &
Decker • Philips • ITW • Fagor
Electrolux competitors
LG Electronics • Panasonic • Haier Group •
Sanyo • Midea • Samsung • Dyson •
Manitowoc • ITW • Sailstar • Image
Africa, Middle East
Population: 1,336 million
Average number of
persons per household: 5.9
Urban population: 50%
GDP per capita 2012: USD8,400
Estimated real GDP
growth 2012: 0.1%
Latin America
Population: 608 million
Average number of
persons per household: 3.7
Urban population: 79%
GDP per capita 2012: US D9,600
Estimated real GDP
growth 2012: 2.5%
Southeast Asia and China
Population: 3,750 million
Average number of
persons per household: 3.8
Urban population: 42%
GDP per capita 2012: USD5,900
Estimated real GDP
growth 2012: 7.2%
15
20
25
13121110090807060504
Million units
* Eastern Europe
40
45
50
55
60
131211100908
Million units
150
200
250
300
131211100908
Million units
0
50
100
150
200
250
SEKbn
Professional
products
Small
appliances
Major
appliances
0
20
40
60
80
100
120
SEKbn
Professional
products
Small
appliances
Major
appliances
0
100
200
300
400
500
SEKbn
Professional
products
Floor
care
Major
appliances
0
20
40
60
80
100
% of households
Cookers
Refrigerators
Washing machines
Microwave ovens
Dishwasher
Dryers
Air-conditioners
0
20
40
60
80
100
% of households
Cookers
Refrigerators
Washing machines
Microwave ovens
Dishwasher
Dryers
Air-conditioners
0
20
40
60
80
100
% of households
Cooktops
Refrigerators
Washing machines
Microwave ovens
Dishwasher
Dryers
Air-conditioners
Sources: World Bank and Electrolux estimates.
25ANNUAL REPORT 2013