Electrolux: Changing Pinoy homes one appliance at a time

MANILA, Philippines - The local unit of Swedish appliance maker Electrolux is in for another growth year given plans to roll out more quality European appliances in the Philippine market.

A little more than a decade of operations in the country certainly improved the know-how of Electrolux in penetrating Filipino homes with innovating products, an executive said.

And as one of the top performing economies in Southeast Asia, the Philippines is now ready for more functional yet aesthetically-driven appliances.

“The thrust for us this year is to make sure whatever products we brought in last year, we will fully maximize it in making sure the market gets it by expanding our distribution network. And we will bring in more products from the region,” Electrolux Philippines Inc. general manager Malou P. Estaris said in an interview.

Since starting operations in the Philippines in 2002, Electrolux has gained a foothold in Filipino homes with its array of appliances for living spaces (vacuum cleaners and airconditioners), kitchen (cookware, blenders, coffee makers, electric kettles, rice cookers and dishwashers) and laundry (irons, dryers and washing machines).

“When we started, we were only selling refrigerators and few washing machines and we had very little distribution network,” Estaris said, adding that not all dealers are willing to transact business with then new player Electrolux.

Hence, Electrolux marketed its products through direct selling, going door-to-door for potential clients. But now, appliance stores are more than willing to welcome Electrolux products.

Estaris said the business has more than doubled compared with a decade ago. The local business of Electrolux is driven by the refrigeration segment, with other items like cooking products, washing machines and airconditioners accounting for the remaining 50 percent.

“The market is ready for innovations and I think it has something to do with the fact we are interconnected already,” she said, adding that the ease of travel between continents has increased Electrolux’s brand familiarity.

Even the product lineup significantly increased, from the single door refrigerators to dual door and no front variations. Frontload washing machines, an expertise of Electrolux in the European region, are also now popular locally.

Banking on a good brand equity, Electrolux hopes to make a bigger impact in modern Filipino homes despite challenges of stiffer competition.

“The challenge is even more difficult now. Although you are in consumers’ minds when they leave their homes, they have lots of choices in the store,” Estaris said.

“As far as the old folks are aware of, Electrolux is a very good brand with high quality. Expensive but very durable,” Estaris said.

Innovation is also at the heart of the European appliance maker, allowing it to stand out among the crowd.

“We have many innovations that came from intuitive research studies. It makes the products different from the rest of our competitors,” Estaris said.

While Electrolux is primarily a product for Europeans that treat appliances as part of design for their homes, the company has adjusted to the needs of the local market.

For one, its refrigerators were tweaked to cater to Filipinos’ need of storing lots of plastic bottles in refrigerators. In washing machines, Electrolux introduced half-cycle washing, built-in weighing scales for efficient cleaning and timers to take advantage of low electricity rates at night.

Estaris said the times call for innovations particularly in energy savings. The Philippines holds the notorious record for having the second highest electricity costs in Asia and also one of the most expensive in the world, primarily driven by expensive power production.

The proliferation of condominium projects also called for more space saving products, Estaris said.

“One of the big goals we have is to ensure that cooking products will be the highlight of this year,” she said. Electrolux offers an extensive lineup of kitchen appliances for condominium units.

More home-changing products are in the pipeline, with Electrolux looking for new ideas though a global design contest called “Design Lab,” which transform students’ ideas into the next generation appliances.

For the past three years, the Electrolux has partnered with the University of the Philippines College of Fine Arts but starting this year, industrial design students from other universities will be able to submit their ideas.

The management style of Estaris, the first Filipina general manager of Electrolux, ensures that the company will continue to listen to consumers and effectively communicate its new products.

“To be a leader is to be able to make sure your people understand your vision and goals,” Estaris said, adding that she makes sure to get feedback from stakeholders.