Electra CEO Urges Lower Taxes to Boost Consumer Spending and Growth
“Let’s take a moment to dive into the world of diapers,” proclaimed Zvika Schwimmer, the dynamic CEO of Electra Consumer Products, during a lively discussion at a major conference. “Not too long ago, I was sharing a meal with Dr. Zinkann, the visionary behind Miele, a leading premium appliance brand. He shared a fascinating insight: ‘Zvika, you know what’s intriguing? In Germany, adult diapers outsell baby diapers at the supermarket. In Israel, however, it’s the opposite. The fact that baby diapers are flying off the shelves is a sign of growth—and that’s a reason to celebrate!’
“Sometimes, a fresh perspective is all you need to affirm your beliefs,” Schwimmer added. “In that one powerful statement, Dr. Zinkann encapsulated our core philosophy at Electra Consumer Products. We firmly believe in Israel, its potential for growth, and the vibrancy of the Israeli market and consumer.”
Founded nearly 80 years ago as a humble refrigeration venture, Electra Consumer Products made a monumental mark in 1955 by introducing Israel’s first home air conditioners. Schwimmer emphasized that the company has always recognized one pivotal truth: Israel is a nation that’s a perpetual growth engine.
“Just a few months back, I had the privilege of visiting Samsung’s headquarters in Seoul, where we proudly represent their brand in Israel,” Schwimmer recounted. “The folks there told me that Israelis are trailblazers, always eager to embrace new products. Even during challenging times, this drive for innovation fuels our growth.”
Swimmer passionately noted that Electra has evolved far beyond just air conditioning. “Today, we stand proud as one of Israel’s premier consumer product groups, with ventures spanning air conditioning, electronics, food, sports, leisure, and even innovative financial services in partnership with leading names, serving hundreds of thousands of satisfied customers.”
Schwimmer also shed light on the transformation of the Carrefour chain in Israel, for which Electra holds the franchise. “We’ve taken two underperforming chains—Yenot Bitan and Mega—and revitalized them into a thriving international brand. While we still have plenty of work ahead, we’ve embarked on an ambitious kashrut project and are launching a new store weekly. Today, Carrefour proudly ranks as the second-largest chain in branch count, fourth in revenue, and leads in urban markets. It’s been profitable for five consecutive quarters and is winning over customers, even in the ultra-Orthodox community.”
Expressing his optimism about Israel’s resilience and economic vitality, Schwimmer remarked, “People will always need food, appliances, and clothing.” He referenced a Deloitte report that analyzed Israel’s economic performance during conflicts, highlighting a pattern of short-term dips followed by significant recoveries and booms. “Israel has an impressive track record of bouncing back and emerging stronger after tough times. This cycle of increased consumption bolsters a circular economy: consumer spending fuels government revenue, energizes businesses, and ultimately boosts wages.”
To further invigorate the economy, Schwimmer advocated for “de-escalating tensions, enhancing security, reducing taxes, and fostering consumer spending—strategies that can elevate state revenues without straining citizens.”
Addressing regulatory challenges, Schwimmer praised areas where Israel has aligned with European standards, especially in electronics that promote competitive pricing and a diverse range of products. However, he pointed out regulatory shortcomings in the food sector. “The reforms aligning us with Europe in pharmaceuticals and hygiene have been commendable, but food regulations remain excessive—like stringent shelf-life testing and labeling rules that slow processes down. We need to adopt effective European practices, such as allowing foreign-language labels.”
Looking ahead, Schwimmer is confident that tourism and real estate sectors will rebound robustly. “We need to encourage immigration, as Israel remains the safest haven for Jews globally,” he asserted.
Electra, he emphasized, is dedicated to revitalizing areas affected by conflict. “Post-war, we’ve shifted focus to private customers needing air conditioning while also kick-starting construction projects. Rebuilding the north and south requires resilience. On the day of the ceasefire, we were among the first to open a branch in Kiryat Shmona. We’ve also partnered with Carrefour there, confident that people will return to these regions.”
Identifying cities like Ashkelon, Netivot, Sderot, Ofakim, Nahariya, Acre, and Kiryat Shmona as hotspots for potential growth, Schwimmer declared, “These places weathered the toughest storms in 2024 but are on the verge of remarkable growth in 2026 and 2027. Young families, deeply committed to Israel’s future, will flock there, fueling local consumption and driving economic prosperity. We are strategically investing in the foundations of tomorrow.”
