System-ID: s_6_0

Sales, Brand Names, Products and Innovations

Sales

68 percent of Gorenje's sales in terms of value are attained in the markets of Eastern and Southeastern Europe.

In 2010 sales of household appliances of the Gorenje Group attained EUR 738 million (excluding the Gorenje Tiki supplementary programme and Atag). The greater part of this amount (69 percent of value volume) was generated in the markets of Eastern and South-eastern Europe, followed by the markets of Western Europe with 27 percent, and the markets of the Middle and Far East.

Sale of home appliances in some of the Group's markets
       
 IndustryGorenje GroupMarket share of Gorenje Group
(in terms of pieces)201020092010200920102009
Austria1,277,5591,249,759109,794104,3508.59%8.35%
Belgium1,635,5281,546,19417,62818,2111.08%1.18%
France9,317,6129,277,84782,183113,2100.88%1.22%
Germany11,770,28611,555,412562,884501,2504.78%4.34%
Italy7,244,6566,924,40213,23115,1920.18%0.22%
Scandinavia3,933,6283,658,804183,556181,4174.67%4.96%
Great Britain6,524,1306,830,00547,63556,9810.73%0.83%
Bulgaria318,621343,78242,42447,08213.31%13.70%
Croatia 365,972356,693161,908155,25244.24%43.53%
The Czech Republic1,085,5141,227,011259,903282,08023.94%22.99%
Hungary662,975719,35395,00599,11514.33%13.78%
Poland 2,938,7862,954,177118,527141,1604.03%4.78%
Romania631,223640,08040,09235,4376.35%5.54%
Russia5,199,3864,213,408340,278271,4776.54%6.44%
Slovakia394,362407,66480,38493,21120.38%22.86%
Slovenia244,939254,680111,443121,78045.50%47.82%
Ukraine1,167,368881,678245,988146,63921.07%16.63%
Serbia601,264648,720306,818308,38651.03%47.54%

In 2010, the sale of large household appliances market rose by two percent, but our growth was higher, i.e. 5.4 percent. Gorenje's market share in key markets was 4.5 percent, and 11.6 percent in markets where we generate the greater part of our revenue (Europe).

On average, we managed to raise the average price of products sold by almost four percent as a result of the favourable sales composition of products and markets. Among the most successful products was the Simplicity line, which exceeded the sales plans by more than 80 percent.

Geographic Aspect of Sales

Good sales results were achieved in the German market, where we increased the sale of large appliances by twelve percent and surpassed the sales growth of the market. This consequently resulted in the growth of Gorenje's market share from 4.3 percent to 4.8 percent. Favourable results were also attained in Austria, the Netherlands (Atag), Denmark and in Norway.

Our most successful results in Eastern markets were attained in the Ukraine, where we increased our market share by 4.4 percentage points to 21 percent by the end of 2010. Slight increases were also recorded in the markets of Croatia, Macedonia, Serbia, and the Czech Republic. In other markets, our market share remained the same or slightly decreased (particularly in Slovakia).

The Company's sales in the Middle East rose 75 percent, primarily in Turkey, United Arab Emirates, Iran and Iraq. We also began to sell our products in Azerbaidzhan. We successfully presented our design lines in the Far East, particularly in China, Taiwan and Hong Kong. The Company also acquired a number of attractive business deals for the interior decoration of luxury apartments in Hong Kong and Shanghai.

Significant Events in 2010

Of special significance for the Gorenje Group in 2010 was the IFA fair in Berlin, where we exhibited our products for the third time and very successfully presented our novelties, attracting customers from all over the globe. We also presented our company at the Brazilian Casa Cor fair, the leading architects' fair in Brazil, and announced our entry into the Brazilian market.

Gorenje's growing presence in European markets and its accelerated development outside Europe (Brazil, India, China, etc.) are strengthening its negotiating power with international retail chains. We are thus continuing our successful strategic partnership with the largest European retailers, which are METRO -Media/Saturn Holding, Euronics, Expert, ...