09/30/2008 11h39
Electrolux invests in B and C classes
Gazeta Mercantil - 09/30/2008
Consolidated in the categories of biggest market value of the white line, with the image connected to sophisticated and modern products, focused on the upper classes, Electrolux prepares an offensive to conquer the C class. Looking for this market niche, the company tried a new type of domestic stoves, with models of average prices, and it bets in the bigger purchase power of the consumer, who would be migrating from the simpler categories to the intermediate ones. The goal, according to Winston Merchor, marketing director of the Sweden multinational in Brazil, is to double the volume of domestic stoves sales in the next three years. According to Merchor, the new stoves will be produced in the plant in São Carlos (SP). Today, the company works only in the highest segment of stoves - where it keeps the leadership -, which represents 20% of the annual market, about 5 million units. The intermediate category, in which Electrolux is getting after eighteen months of surveys with consumers, represents another 30% of the market. Although it is still outside 50% of the market, composed by cheaper stoves, from R$ 200.00 (US$ 104) to R$ 500 (US$ 260), Merchor affirmed that there is a migration of the lowest category to the intermediate one, which has grown faster. Because of this, the company has not plans to enter the most popular category yet - although it does not rule out the idea. Besides entering a new category of stoves, the multinational is also expanding its line of refrigerators, which will gain two-door models with touch-sensible controls. In the segment, one of the most disputed and fastest growing ones - responsible for the annual commercialization of around 6 million parts -, the company is present in the four categories: one door, Defrost, Frost Free and Side by Side. According to Merchor, Electrolux finished 2007 with participation in the market of 29.5% in refrigerators. "But we are growing above the market. I believe that we should close this year above 30%." The company fights for the category leadership with Consul, of North-American Whirlpool that also commercializes the Brastemp brand in Brazil. Another category in which Electrolux is striving to expand its presence is washing machines. New models with higher capacity and reuse of water are coming to the market at the same time that the penetration of the home appliance in growing in Brazil. The company closed 2007 with a share of 36% of the automatic washing machines market, which represents about 2.3 million units. "But we are near a 40% share this year", said him.
