Electrolux 2014 Annual Report Download - page 54

Asia/Pacific
Electrolux has market-leading positions in Australia and New Zealand
and is expanding in growth markets in Southeast Asia and China. New
product offerings adapted to meet an expanding middle class in these
growth markets comprise a key element of the growth strategy.
Gunilla Nordström, Head of Major Appliances Asia/Pacific
About half of Electrolux appliances
sales in the Asia/Pacific region is in Aus-
tralia, where the Group is the market
leader. The Electrolux brand is posi-
tioned in the premium segment with a
focus on innovation, energy and water
efficiency, and design. The Group’s
Westinghouse and Simpson brands
command strong positions in the
mass-market segment. Key competitors
comprise Fisher & Paykel, Samsung and
LG Electronics. The market softened
slightly in , and the Group’s sales
volumes declined. Water and energy
efficiency are key drivers in the hot
and dry Australian climate. Electrolux
dishwashers and front-load washing
machines are well adapted to these
conditions and have significant market
shares.
Growth and innovation
During the year, Electrolux acquired
Australian BeefEater Barbecues, which
has a strong, established position in
the barbecue segment. in Australia.
A considerable amount of cooking
is done outdoors and the acquisition
complements and strengthens the
Electrolux offering and position in this
segment. Electrolux sees substantial
growth potential in the barbecue seg-
ment, since it accounts for almost one
quarter of the cooking-products market
in Australia.
Growth in the appliance market
in Southeast Asia has been strong in
recent years, but demand declined
in . Electrolux sales has showed
strong grown in the region and market
shares have increased.
Electrolux has a strong offering
of premium products, for example,
energy-efficient front-load washing
machines and built-in appliances for the
kitchen, such as gas hobs with burners
that are especially adapted for stir fry-
ing. Premium products are in demand
by a rapidly growing middle class.
Demand is also increasing for energy-
efficient products. Refrigerators from
the newly opened plant in Thailand
further strengthened Electrolux position
in Southeast Asia during the year.
China is the world’s largest market
for household appliances, measured
by volume and, in the last few years,
the growth rate in the region has been
high. In , market demand declined
year-over-year. The Electrolux market
share of the Chinese market is rela-
tively low, but sales has grown by an
average of about % per year since
. Electrolux is focusing its offering
on premium products for the rapidly
growing middle class in major cities in
China and has a complete range of
kitchen and laundry appliances, which
has been especially developed for
Chinese consumers.
Efficient manufacturing
To further streamline and consoli-
date manufacturing, production is
transferred from Orange, Australia, to
the plant opened in  in Rayong,
Thailand. The plant is at the center of
the Group’s global development of
refrigerators and plays a crucial role in
efforts to achieve profitable growth in
the Asia/Pacific market.
PRIORITIES
MOVING FORWARD
• Strengthen the leading position
in Australia and New Zealand
• Grow profitably in Asia
• Increase market share in China
COMMENTS
ON PERFORMANCE
Electrolux showed a slight organic growth
in . Sales volumes continued to increase
in growth markets, while sales in Australia
declined.
Operating income was impacted by
a negative country mix and unfavorable
currency development., while higher prices
and enhanced cost structure contributed
to earnings.
NET SALES AND
OPERATING MARGIN
MARKET POSITION
• Core appliances % in Australia.
• Small but growing market share
in Southeast Asia
SHARE OF OPERATING INCOME
9%
SHARE OF NET SALES
8%
SEKm
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1413121110
Net sales Operating margin
%
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