Extensive product launches

The Western European household appliance market is dominated by replacement products as a result of high penetration in most product categories and low or stagnated population growth. Meanwhile, an increase in the number of households due to a rising share of elderly people, combined with the small living spaces in most homes, has led to higher demand for compact and user-friendly products. Demand for appliances continued to decline in 2012 for the sixth consecutive year. The weak demand in primarily Southern Europe had a negative impact on development.

A fragmented market

Western Europe is made up of many countries and language areas, which has resulted in widely varying consumer patterns and the establishment of a large number of manufacturers, brands and retailers for appliances. The low degree of consolidation is one reason for overcapacity and price pressure in the industry. The market for professional kitchens is characterized by the presence of many manufacturers who often specialize in only one product category. Conversely, the market for professional laundry equipment is served by fewer players able to supply a larger product portfolio.

New products

Electrolux has significant market shares in both appliances and vacuum cleaners in Western Europe, which is the Group’s largest market. A well-reasoned strategy with several product launches in recent years has led to Electrolux further strengthening its position, for example, in the built-in segment. Two extensive product launches took place in 2012. The Inspiration Range, encompassing new, innovative kitchen appliances and laundry products was launched under the Electrolux brand in the premium segment. In addition, the Zanussi Quadro built-in product range was launched, targeting to the mass-market segment in Europe.

Western Europe represents 30% of the Group’s sales of vacuum cleaners, with best sellers including Ergorapido and Ultra Silencer. About 65% of sales of Professional Products takes place in Western Europe. The strongest position is found in restaurants, hospitals and commercial laundries.

Growth opportunities

Despite the weak macroeconomic trend, the market for built-in appliances is continuing to grow in the long term and Electrolux is capturing market shares. Attractively designed, rechargeable handheld vacuum cleaners are continuing to capture an increasingly large share of the vacuum-cleaner market. Electrolux is a leader in this category. In addition, the market for small domestic appliances is displaying fast-paced growth in certain categories.