Electrolux 2014 Annual Report Download - page 56

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Small Appliances
Electrolux is one of the world’s largest vacuum-cleaner manufacturers
and the only global company in the industry. Within the small domestic
appliances segment, the Group has a rapidly growing business with an
ever broader product portfolio. A large number of new products was
launched worldwide in .
Henrik Bergström, Head of Small Appliances
In the vacuum-cleaner segment, the
Group holds leading positions in the
largest markets, and has a particu-
larly strong presence in the premium
vacuum cleaner and rechargeable,
hand-held vacuum-cleaner segments.
Product development is focused on
innovative and energy-efficient vacuum
cleaners in the upper-price segments.
The Group is continuing to capture
market shares in small domestic appli-
ances through developing and launch-
ing a number of new product ranges.
In Europe, most products are sold
under the Electrolux brand, which is
complemented with the AEG brand. In
North America, the Eureka brand dom-
inates the vacuum-cleaner segment,
complemented by Electrolux in the
more exclusive segments. Sales in Latin
America and Asia are predominantly
under the Electrolux brand.
Growth and innovation
Total sales declined slightly, primarily
due to lower vacuum cleaner sales
in North America and Europe. Sales
growth continued in Asia, while the
pace of growth softened in Latin
America year-on-year. Sales of small
domestic appliances, and accessories
and spare parts continued to increase
and posted healthy growth in several
regions. During the year, a substan-
tial number of new vacuum cleaners
and small domestic appliances was
launched.
In Europe, new regulations for the
energy labeling of vacuum cleaners
were introduced by the EU following
initiatives promoted by Electrolux,
among others. The Group renewed
its entire range of vacuum cleaners
launching products that meet the
highest requirements in terms of energy
efficiency, dust pick-up, noise levels and
air emissions.
The bagless vacuum-cleaner seg-
ment is expanding rapidly. About %
of the market in Europe comprises
bagless vacuum cleaners and the
corresponding figure for Asia is %.
The premium bagless vacuum cleaner
Electrolux UltraFlex was launched in a
number of markets in Europe and Asia
during the year.
The third generation of the bat-
tery-powered hand-held vacuum
cleaner Ergorapido was launched
worldwide in . It is the Group’s
best-selling vacuum-cleaner platform
ever, with over  million units sold.
During the year, the Expressionist
Collection was launched. This is a new
family of small domestic appliances
elegantly designed in stainless steel
and intended to match premium major
appliances under the Electrolux brand.
The range includes items such as coffee
makers, kettles and toasters.
The Masterpiece Collection was
launched at the end of the year. This
exclusive range of small domestic
appliances incorporates design ele-
ments, learnings and technology from
the Group’s Professional Products
operations.
Operational excellence
During the year, investments contin-
ued in increased production capacity
in Juarez, Mexico. In total, capacity
has increased by about % in 
and . The plant primarily pro-
duces vacuum cleaners for the North
American market.
The continued efforts to lower the
direct cost of materials in production
led to substantial savings at all produc-
tion facilities.
Continued focus on capital efficiency
led to working capital remaining at the
low level reached in .
PRIORITIES
MOVING FORWARD
• Continue launches of new, innovative
products in vacuum cleaners and small
domestic appliances
• Accelerate profitable growth, with partic-
ular focus on Asia and EMEA
• Restore profitability in North America and
Latin America.
COMMENTS
ON PERFORMANCE
Operating income declined year-over-year,
primarily as a result of lower sales volumes
and price pressure. Moreover, earnings
were negatively impacted by currency
effects, primarily in Latin America. To an
extent, this was mitigated by product mix
enhancements in several regions.
NET SALES AND
OPERATING MARGIN
MARKET POSITION
• Leading positions in Europe,
North America and Latin America
SHARE OF OPERATING INCOME
4%
SHARE OF NET SALES
8%
SEKm
,
,
,
,
,
1413121110
Net sales Operating margin
%


 ELECTROLUX ANNUAL REPORT 
   