Appliance Magazine | European Edition -
[Cached Version]
Last Visited: 2/26/2004
"This shift in production capacity meets the need for a more even balance between output levels in Eastern and Western Europe," says Aldo Taddeo, Merloni's managing director, Central Europe."About 86 percent of the company's total production is provided by its plants in Western Europe, a region that only delivers 67 percent of the company's sales.Further, while Western European markets are showing growth of slightly over 2 percent, Eastern European markets are enjoying double-digit growth rates.
"Our Budapest office will house the country management for Hungary, Czech Republic, Slovakia, and Romania," Mr. Taddeo adds.
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According to Mr. Taddeo of Merloni, each Central European country requires a different approach."Hungary and Poland are very price-sensitive, but Czech customers got acquainted with German quality and have somewhat higher demands.Romanians want to upgrade from old-style products," he explains.
"Communism favored high-rise buildings with small apartments, so space-saving products are typical for these markets.Here, the smaller front-load washers are popular.Also, French-style top-loaders are popular," Mr. Taddeo says.