The appliance company that's 'thinking of you'

MANILA, Philippines – When the going gets tough, the tough get going. This holds true, especially in business where competition is fierce for the backing of a discerning, highly educated and value-for-money-oriented market.

For the Electrolux group, it is a distinct advantage to have innovative products backed by extensive research. The company takes pride in its “Thinking of You” tagline, and products are designed based on consumer insight to be able to meet the real needs of end-users. The extensive research that becomes the basis for product design is clearly effective. As a global leader in home appliances and appliances for professional use, the company sells more than 40 million products in 150 countries every year. In the Philippines, Electrolux products include refrigerators, washing machines, cooking appliances and vacuum cleaners under the brands Electrolux, White-Westinghouse/Electrolux and Frigidaire.

Last year was the “banner year” for Electrolux Philippines Inc. With appliance sales reaching the highest levels since the company was established in the country in October 2001, the brand showed impressive name recall and patronage by consumers in 2008.

Has economic slowdown affected sales growth? We asked Malu Estaris, who was recently appointed general manager of the company. “In the Electrolux group, the Asia-Pacific region is very stable. There is no shrinkage in the market, although growth is expectedly slower,” she shares. “Perhaps the stability is due to the fact that the (economic) fundamentals are strong in the area where people have learned from previous crises. For Filipinos, appliances are major items that they plan for. These are not impulse purchases; rather, people save to buy these.”

Moreover, the reputation of Electrolux as a tried and tested brand stands it in good stead. Says Malu, “The psychographics of the Filipino consumers reflect that they will invest in appliances that they know will last.” Noticeable however, is that credit card purchases of appliances were higher last year.

Still, steps have been taken to be able to approximate last year’s outstanding growth. Key to achieving this is in maintaining the high morale within the company. “We have set higher goals this year and we may have to work harder to achieve these. But we need to make good and help each other. Personal motives take a backseat to the good of the company.” Regular team-building exercises encourage healthy dialogue. Likewise, it promotes openness to new ideas and honesty. “Management takes the effort to make all employees feel that we are with them through thick and thin. We want our people to trust and be confident that true to the company’s ‘Thinking of You’ philosophy, Electrolux Philippines is thinking of them and is committed to protecting them,” says Malu.

To further ensure efficient operations, constant effort is taken to consolidate purchases and negotiate for significant discounts without overstocking. “It is a tricky balancing act because we do not have a manufacturing facility in the country,” Malu explains. “It is critical that planning should be accurate so that products arrive when we need them.”

How is this done? “We look at past trends and take forecasting seriously, so we know how much we can actually sell.” Although refrigerators still make up the bulk of sales, the brand has become the leader in the front-load washing machine segment, especially during the rainy season.

To boost sales even more, Electrolux has developed and intensified partnerships with designers, builders, architects and construction companies. Indeed, the company’s ergonomically pleasing concepts for food preparation and preservation have become an attractive alternative for modern design. Surprisingly, these are affordable, too. Of course, the added bonus is that Electrolux appliances are environment-friendly and meet the highest standards of energy and water-use efficiency.

Malu Estaris is one of only two female general managers for Electrolux in the Asia-Pacific region. As a pioneer of Electrolux Philippines Inc., she has witnessed how the company has grown by leaps and bounds. She is undaunted by the economic situation and confident in the capabilities of her team. Smiling when asked what the goal is during her watch as general manager, she replies, “To reach the one-billion sales mark.”