Europe & Asia/Pacific

The Group is a leading producer of forestry, park and garden products in Europe, Asia and the Pacific. The products are sold through a distribution network of dealers and retailers. The offer is characterized by a broad competitive product offering and strong brands who that turns to both professionals and consumers. Net sales represent 49% of total Group sales.

Products

The business area develops, manufactures and sells forest, park and garden products to Europe, Asia and the Pacific. The products can be divided into five categories; wheeled products, handheld products, electric products, watering & hand tools and accessories. The product range is wide and competitive and product development maintains a high pace. The development of new and existing products is focused in a few global centers of competence and prioritized areas are to increase the investment on, and grow in, professional handheld products, robotic lawn mowers and watering.

Brands

The brand portfolio includes several strong brands. Husqvarna and Gardena are the core brands and in addition to these are a number of brands such as McCulloch, Klippo, Zenoah, Jonsered and Flymo with strong positions in more regional or local markets or within specific product categories.

Size of market and position

The market for forest, park and garden products in the Europe and Asia/Pacific region is estimated to approximately SEK 65 billion. Husqvarna holds a strong position in Europe with a market share of around 20 percent. Western Europe is the largest single market. Husqvarna has leading market positions within its product categories.

Drivers

Consumer 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.

Distribution channels

Products are sold primarily through dealers and retailers. Dealers sell primarily high-end products while retailers are more focused on mid-and low priced. The strong distribution network has been built up over a long time and is a key competitive advantage. Husqvarna is continually working to maintain and strengthen relationships with retailers by improving delivery reliability, increase the availability of spare parts and providing better training programs. Investments in brand building measures in stores with regard to exposure of products and packaging are also made.

End-users

End-users comprise three categories; Home and landowners; Professional landscape and ground care and Professional forest and tree care.

Production

  • Czech Republic: watering products and hand tools.
  • Germany: watering products and hand tools.
  • Poland: lawn mowers and ride-on lawn mowers.
  • Sweden: trimmers, clearing saws, chainsaws and professional ride-on lawn mowers.
  • U.K.: corded and cordless lawn mowers and robotic lawn mowers.
  • U.S.: ride-on lawn mowers, walk-behind lawn mowers, snow throwers, chainsaws, trimmers and blowers.
  • Brazil: chainsaws and trimmers.
  • China: trimmers and chainsaws.
  • Japan: chainsaws and other handheld products. 

Competitors

In Europe, Global Garden Products (GGP) has a leading position for both riders and walk-behind lawn mowers, under such brands as Stiga. Bosch of Germany competes primarily for electrical and battery-driven products, while Hozelock of the UK has a strong position in garden equipment and watering, mainly in the UK. Stihl is a competitor in several categories, primarily for handheld petrol-driven products such as chainsaws and trimmers in the high-price segment. Other competitors include Modern Tool and Die Company (MTD) and Toro in the US.

Priorities

  • Expand the dealer channel and the commercial lawn and garden sector.
  • Expand in emerging markets.
  • Grow professional handheld, robotic lawn mowers and watering.

Strong brands

Core brands:

  • Husqvarna and Gardena

Other brands:

  • Jonsered, Zenoah, McCulloch, Klippo and Flymo

Efficient distribution network

Dealers and retail chains such as B&Q, Leroy Merlin, OBI, Bauhaus.

Net sales and operating margin 2013

Net sales by product category 2013

Net sales by country 2013

Net sales by distribution channel 2013

Broad product offering

  • Handheld products: petrol-powered chainsaws, trimmers, clearing saws, blowers and hedge trimmers.
  • Electric products: robotic lawn mowers, walk-behind lawnmowers, corded and cordless chainsaws, trimmers, hedge trimmers and blowers.
  • Wheeled products: riders (with front-mounted cutting deck), garden tractors, walk-behind lawn mowers, tillers and snow throwers.
  • Watering products and hand tools: hoses, couplings, sprinklers, secateurs, watering controls, irrigation systems etc.
  • Accessories: accessories and replacement parts.
  • Main brands: Husqvarna, Gardena, Jonsered, Zenoah, McCulloch, Klippo and Flymo.

Competitors

Bosch, Echo, Fiskars, GGP, Hozelock, John Deere, MTD, Shindaiwa, Stihl, Toro and TTI.