Americas

Husqvarna holds strong market positions in several product categories in North- and Latin America. The North American market is highly consolidated, and the products are sold primarily through large retailers, as well as dealers.

Products

Operations in this business area include development, production and sale of forest, park and garden products in North America and Latin America. The products comprise five categories; wheeled products, walk-behind products, handheld products, watering and hand tools and accessories.

The product range is comprehensive and competitive. Several global competence centers are devoted to maintaing a high rate of product development for both new and existing products.

Brands

The portfolio includes a number of strong brands with Husqvarna and Gardena (Canada) core premium brands and other brands include McCulloch, PoulanPro and WeedEater. The retail chain Sears is one of Husqvarna’s largest customers, selling forestry, park and garden products under the Craftsman brand.

Size of market and position

The retail market for this business area is estimated at approximately SEK 75 billion. The market is highly consolidated and the four largest retail chains account for 70% of sales. The business area has leading market positions within its product categories.

Drivers

The consumers demand is driven by the general business cycle as well as trends for private consumption of capital goods for households. Considerable variations in demand can occur year-on-year as well as between markets, as a result of weather conditions and the length of the season.

The demand from professional users is reflected generally by business conditions as well as activity in the forestry industry. The demand for high specified lawn and garden equipment can vary substantially from year to year and within markets, depending on weather conditions. Demand for chainsaws is favorably affected by storms and fallen trees.

Trends

  • Private individuals will continue to demand high-end chainsaws. This trend is strongest in growth markets.
  • Demand for environmentally-friendly products will increase, particularly those that are battery-driven.
  • Garden activities will become more automated.

In order to map consumer gardening trends Husqvarna has commissioned independent research institutes. The results of the latest reports can be summarized as follows:

  • The importance of using gardens for organic cultivation will increase.
  • Increased integration of green areas in urban environments.
  • Trend toward more individually configured gardens.
  • Increased cultivation of fruit and vegetables.

Distribution channels

In North America the greater part of sales to consumers are channeled through major retailers such as Sears, Lowe’s, Walmart and Home Depot. Husqvarna-branded products are sold mainly through dealers, i.e. small independent retailers who also offer technical service. The main end-users for this brand are professional garden/landscape maintenance companies as well as municipalities and institutions.

The strong distribution network has been developed over many years and is an important competitive advantage. The Group is committed to continuously maintaining and strengthening relations with dealers. This includes enhancing delivery reliability, improving access to spare parts and offering improved training programs. Husqvarna is also increasing investments in brand-building at points-of-sale in terms of product displays and packaging.

End-users

End-users are mainly; Home and landowners; Professional landscape and ground care and Professional forest and tree care.

Production

  • Sweden: chainsaws, trimmers and clearing saws.
  • U.S.: (McRae, Georgia): walk-behind lawn mowers, snow throwers.
  • U.S.: (Nashville, Arkansas): chainsaws, trimmers and blowers.
  • U.S.: (Orangeburg, South Carolina): ride-on lawn mowers.
  • Brazil: chainsaws and trimmers.
  • China: trimmers and chainsaws.

Competitors

Major competitors include the US companies John Deere, Modern Tool and Die (MTD) and Toro, as well as Stihl of Europe.

Husqvarna competes with John Deere and MTD mainly in lawn mowers and garden tractors. Toro is a competitor in lawn mowers and trimmers for consumers. Stihl is strong in several categories, primarily chainsaws and trimmers for the high-price segment. Husqvarna also competes with John Deere and Toro in park and garden equipment for professional users.

Major competitors include the US companies John Deere, Modern Tool and Die (MTD) and Toro, as well as Stihl of Europe.

Husqvarna competes with John Deere and MTD mainly in lawn mowers and garden tractors. Toro is a competitor in lawn mowers and trimmers for consumers. Stihl is strong in several categories, primarily chainsaws and trimmers for the high-price segment. Husqvarna also competes with John Deere and Toro in park and garden equipment for professional users.

Priorities

  • Prioritize value creation.
  • Reduce complexity in product and brand portfolio.
  • Differentiation of retail and dealer business models.
  • Grow dealer channel sales.

Strong brands

Global premium brands

  • Husqvarna, Gardena (Canada) and McCulloch

Other brands

  • PoulanPro, WeedEater, Dixon, Bluebird and RedMax

Private label

  • Supplier to the Sears brand, Craftsman.

Efficient distribution network

Large retail chains as Sears, Lowe´s, Walmart and Home Depot as well as dealers.

Net sales and operating margin 2013

Net sales by geographical area 2013

Net sales by product category 2013

Net sales by distribution channel 2013

Broad product offering

  • Ride-on products: garden tractors and zero turn mowers (ride-on lawn mowers with no turning radius).
  • Walk-behind lawn mowers, robotic lawn mowers, tillers and snow throwers.
  • Handheld products: chainsaws, trimmers, clearing saws, blowers and hedge trimmers.
  • Watering products (Canada).
  • Accessories, garden tools, and spare parts.

Competitors

Echo, John Deere, MTD, Stanley Black & Decker, Shindaiwa, Stihl, Toro and Private labels