Electrolux 2013 Annual Report Download - page 66

Small Appliances
The Group holds leading positions in the
largest markets, and has a particularly
strong presence in the premium vacuum
cleaner and rechargeable vacuum
cleaner segments. Electrolux focuses on
global development of innovative and
energy-efficient vacuum cleaners in the
upper-price segments. In Europe, most
products are sold under the Electrolux
brand, which is complemented with the
AEG brand. In North America, the Eureka
brands dominates, complemented by
Electrolux in the more exclusive seg-
ments. Sales in Latin America and Asia
are predominantly under the Electrolux
brand.
Growth and innovation
The Group’s sales of vacuum cleaners
and small domestic appliances grew
particularly rapidly in Latin America and
Asia. In Asia, sales also grew strongly in
mature markets such as Japan and
Korea, as a result of sales channel
expansion and through the introduction
of new, innovative products. New prod-
ucts and additional sales channels also
made a positive contribution to growth in
Latin America.
In Asia and Latin America, initiatives to
increase sales of accessories and spare
parts were implemented in several coun-
tries and via new channels.
Sales growth for small domestic appli-
ances remained very robust in Europe,
Asia and Latin America. The launch of
new products, such as new coffee-
makers, food-processers, mixers, rice
cookers and irons, made a marked
contribution to growth.
In 2013, a record number of vacuum
cleaners and small domestic appliances
were launched globally.
A new generation of the test winner
and premium model of the vacuum
cleaner, UltraOne was launched in addi-
tion to the introduction of a new genera-
tion of the vacuum cleaner UltraSilencer.
Operating at a noise level of only 61dB(A),
the UltraSilencer is the quietest vacuum
cleaner that Electrolux has ever devel-
oped and probably the quietest vacuum
cleaner in the world.
With the new innovative UltraCaptic,
Electrolux strengthened its position in the
bagless vacuum-cleaner segment. A new
generation of Ergorapido – the Group’s
highly successful cordless handheld vac-
uum cleaner – was launched in Japan.
The launch continued in North America
and the product will be in stores in Europe
in the first quarter of 2014.
In North America, one of the products
launched by the Group was the light-
weight, upright vacuum cleaner AirSpeed
ONE. The Airspeed family now comprises
eight models with shared design traits.
Operational excellence
During the year, production volumes of
vacuum cleaners increased sharply at
the plant in Juarez, Mexico. Conse-
quently, an improved balance was
achieved between products manufac-
tured by suppliers and in-house manu-
facturing, at the same time as production
of key products was moved closer to the
markets. Production at the plant in Brazil
for the local market also increased. Pro-
duction of vacuum cleaners commenced
in Egypt for the countries in the Middle
East.
The systematic efforts to reduce com-
ponent costs in existing and new prod-
ucts yielded excellent results.
As a result of the success of the capi-
tal-efficiency program, working capital
declined significantly and the capital-
turnover rate increased during the year.
Share of net sales 2013
8%
Share of operating income
10%
Market position
• Leading positions in Europe, North America
and Latin America
Net sales and operating margin 2013
Electrolux is one of the world’s largest vacuum-cleaner manufacturers and the
only real global company in the industry. Europe and North America account
for the majority of the Group’s sales, while the fastest growth is occurring in
Asia and Latin America. Electrolux has a rapidly growing business within the
small domestic appliances segment, with an ever broader product portfolio. A
large number of new products were launched in 2013.
Henrik Bergström
Head of Small Appliances
SEKm
0
2,000
4,000
6,000
8,000
10,000
1312111009
Net sales
Operating margin
%
0
3
6
9
12
15
Comments on performance
Electrolux sales increased in all regions as a
result of higher volumes. Sales volumes of
small appliances were particularly strong in the
Asia/Pacific region. Operating income
declined. Increased costs for sourced prod-
ucts in Europe and Brazil, related to the
strengthening of the US dollar against local
currencies were the main factor. Mix improve-
ments and higher prices made a positive con-
tribution to results.
Priorities moving forward
• New, innovative floor-care product launches
in all regions
• Growth for small domestic appliances in all
regions
• Further strengthening of marketing, for
example, by increased focus on digital mar-
keting
64 ANNUAL REPORT 2013
Business areas