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Australian Market A Bright Spot For Electrolux

Although Electrolux’s net sales contracted by 5.1% in Q1, as a result of the COVID-19 pandemic, Australia was one of the few markets where the Swedish appliance manufacturer witnessed growth.

In Electrolux’s Asia-Pacific, Middle East and Africa market overall, organic sales declined by 2.3%, led by lower sales volumes in South-east Asia and China, but the company noted that this was “partly offset by increased sales in Egypt and Australia”.

Over the past year Electrolux has ramped up its marketing efforts in Australia to leverage Australian consumers’ association with Swedish manufacturers and quality products.

As a result of its more aggressive marketing of premium products, the company successfully boosted its Electrolux-branded sales in Australia by 45% in 2019.

Last year Electrolux launched 70 new products across six categories in the laundry and kitchen segments.

The Electrolux French Door Refrigerator (ERMC2295AS)

Nevertheless, the company faces significant headwinds for the coming quarter, forecasting that there will be “a significant loss” in Q2. In April global sales fell by roughly 30%, but the company has said they expect there to be a gradual recovery moving forward.

While there has been an increase in online sales, this has not been enough to offset broader sales results.

Like many other electronics manufacturers with operations in China and the US, Electrolux has had to overcome COVID-19 supply chain issues. “We have worked extensively to mitigate the impact from the initial outbreak in China, from where we source significant volumes of finished products and components, resulting in a limited impact in the first quarter,” said Jonas Samuelson, the President and CEO of Electrolux.

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