Clean returns fuel expansion for Electrolux
A BIG retail push boosted Electrolux East Asia to a 155 per cent increase in its household appliances division over the past year.
Sales rose to US$53.3 million for the fiscal year to August, up from $20.9 million last year, when the group set up a Singapore office to establish distribution channels in Indonesia, Malaysia, Singapore, Thailand, Vietnam and Hong Kong.
Stefan Schlyter, senior vice-president for Electrolux household appliances, said that sales were expected to reach $70 million in 1995-96.
'Electrolux has been gaining market share very quickly,' Mr Schlyter said yesterday. 'In Thailand and Indonesia, we already have more than 10 per cent market share for washing machines, which is significant because it was initially just two per cent.' This higher than expected performance gave Electrolux reason to increase its investment in Asia, Mr Schlyter said.
'We now feel more confident to seriously look into manufacturing in this region,' he said.
Moving manufacturing closer to the Asian market would help save time and money, he said.