Electrolux enters the premium air-con market

       Electrolux has launched air-conditioners in Southeast Asia for the first time, aiming at the top or top-three rank for the premium segment in several countries within three years.
       "We're not worried about a price war with other brands, because Electrolux is positioned in the premium segment. We believe consumers choosing our brand think about the product's innovations and quality more than they do the price," Suresh Balan, president for East Asia at Electrolux Major Appliances, said yesterday in Bangkok.
       Electrolux' prices are 7-10-per-cent higher than other brands in the same segment.
       The Swedish company will also double the Asia-Pacific's sales contribution to 16 per cent within the same time frame.
       The Electrolux brand is strong in many appliance segments, including front-loading washing machines, vacuum cleaners and cooking preparation in Thailand and other Southeast Asia countries, he said.
       In Thailand, Electrolux is the market leader in premium front-loading washing machines and vacuum cleaners. It is either the market leader or in the top three in other Southeast Asia countries.
       Electrolux is confident it will be as successful in the regional air-conditioning market.
       "Electrolux has shifted its focus more to the Asia-Pacific because it has the fastest growth among similar markets, such as the US and Europe, which have been hit from the global downturn despite their small sales contribution," he said.
       Electrolux has increased its marketing budget for Southeast Asia, including Thailand, this year to promote its electric appliances. It will also increase the marketing budget for air-conditioners, so that it can compete with brands from South Korea and Japan.
       "Despite the global recession, Electrolux has no plans to cut its marketing budget," he said.
       Its marketing strategy will stress to consumers that Electrolux air-conditioners are designed for real consumers' needs and lifestyles. It will not dwell on the product's innovations like other brands usually do.
       Electrolux air-conditioners combine an array of proven air-purification technologies. Other key features include Feel technology, which lets users use the remote control as a thermostat, so that cooling can follow them as they move throughout the room.
       Electrolux introduced the line in Indonesia and Malaysia in August and Vietnam and Thailand this month. Next will be the Philippines.
       Three sizes are offered - 9,000 British thermal units, 12,000 BTUs and 18,000 BTUs - with prices starting at Bt24,900, Bt28,900 and Bt34,900, respectively.
       Electrolux Thailand general manager Sutti Manokitjarunman said the company planned to launch a wide range of electric appliances next year. The company expects its revenue and net profit to grow at a double-digit rate next year.