Consumer connection

During his most recent visit to the Philippines, Electrolux Major Appliances-Southeast Asia president Brad Tribble had breakfast in an Antipolo home.

"I try to visit Filipino homes during my regular visits to the country, which averages about twice a month," said Tribble, who is responsible for sales and marketing in six countries, including the Philippines. "For my last visit, our people here looked for a home where the wife did the cooking. Our hostess was very gracious. During the cooking process, we watched her use her kitchen appliances and we asked her why she used them the way she did and what she needed and wanted in her appliances."

Last year, Electrolux Major Appliances accounted for two-thirds of the Sweden-based Electrolux Group’s sales of SEK 121 billion.

The business sector basically deals with kitchen appliances. For example, White Westinghouse-branded refrigerators accounts for 80% of the sales of three-year-old Electrolux Phils., Inc., with cooking appliances and vacuum cleaners accounting for the balance 20%.

Local

"We want to be a top-of-mind brand. We want to be the number one premium brand for appliances. Here in the Philippines, we have reached a crucial level of sustainability. We have stable sales. Now, we want to grow the business by two to three times its current level," said Tribble.

To do that, the company is leveraging on the brand’s strength of combining form and function, of blending Swedish modern design with cutting edge technology.

"Globally, we don’t see ourselves as a manufacturer but as a designer of appliances that are suited to a specific local market. We don’t talk about technology for its own sake; the technology must be rooted in the consumer experience," said Tribble. "That’s why I make it a point to visit ordinary homes. Such consumer connections give us an idea on what Filipinos would consider as perfect appliances. We distill these learnings into innovative themes."

In the Philippine market, the attraction of technologically-advanced appliances comes from consumers who have had global experience, either because they have the wealth or the working experience.

"The Philippine market is an interesting one. One the one hand, you have consumers who have lived abroad. This market covers not just the A-B markets with obvious purchasing power but also overseas Filipino workers. On the other hand, you have consumers who are attracted to the good quality of our products but need some sort of financing to buy our products. This is the market we would like to develop," said Electrolux Phils. Inc. president Vichai Lorattawoult.

Value

Although price has always been a barrier, the company has tried to offset this with what is calls "outstanding value."

For example, the company’s nationwide dealership network of 300 is serviced by local partners in 60 locations. These partners, in turn, are supported by a company-owned spare parts and training center in Metro Manila.

"Building brand awareness through product availability and right pricing is important. Equally important is building consumer confidence through after sales service," said Lorattawoult.