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Report: Electrolux to Launch High-End Refrigerators in China
Feb 18, 2009
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Electrolux hopes to become a leading household appliance brand in China by focusing on a number of key areas and the introduction of a high-end refrigeration platform, according to a China Daily report.

"In these areas, we are going to accelerate, broaden and deepen our presence in terms of cooking and laundry and also in the building part of the market to make the products available to more consumers in these concentrated areas," said Gunilla Nordstrom, head of the company's Asia-Pacific sector and vice-president of AB Electrolux, in the report.

Regarding geographic concentration, the report said that Electrolux will focus on eight core provinces -Heilongjiang, Hebei, Shanxi, Jiangsu, Zhejiang, Sichuan, Guangdong, and Fujian -and four municipalities - Beijing, Shanghai, Tianjin, and Chongqing.

The report said that Electrolux decided to focus on the eight provinces and four municipalities after conducting a nationwide consumer survey. Commenting on the company's new strategy for China, Nordstrom said, "We prefer somebody somewhere to nobody everywhere."

According to the report, Electrolux plans to introduce products to the Middle Kingdom and develop China-tailored technologies and products as soon as possible. It already has a leading cooking and washing machine product portfolio. It plans to sell to the premium segment in China and will soon launch a new range of colored appliances.

To align its refrigerators in China with the premium strategy, the report noted, Electrolux will exit the low-end refrigerator sector. Production at its Changsha factory, which is reportedly geared toward unprofitable economical products and with an annual production capacity of 500,000 units, will cease by the end of 1Q 2009.

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