Kyowon Group's Rental Business Soars Riding the Growth of 'Wells'

Surpassed 700,000 Rental Accounts Last Year... Targeting 1 Million This Year
Growth Accelerates Under President Shin Dong-hoon, Former Samsung Electronics Executive
Expansion Beyond Water Purifiers to LED Masks... Home Care Membership Also Shows Results

[Asia Economy Reporter Kim Daeseop] The rental business of 'Wells,' the health appliance brand under Kyowon Group, surpassed 700,000 cumulative accounts as of the end of last year, marking a 23% increase compared to the previous year. The rental business, which had remained around 500,000 accounts since 2017, has gained momentum. The goal is to exceed 1 million cumulative accounts this year.

According to Kyowon Group on the 14th, Wells' rental business, which sells water purifiers and air purifiers, recorded its highest-ever sales last year with a 44% increase compared to the previous year. The company attributes this to the launch of innovative new products and aggressive marketing efforts.

Wells started its rental business in 2003 and surpassed 400,000 accounts in 2016. Although growth slowed to 500,000 accounts in 2017 and 570,000 accounts in 2018, the pace has accelerated significantly since last year. Notable changes appeared after hiring Shin Dong-hoon, a former Samsung Electronics executive, as president of Kyowon Group and head of the Wells business division in 2018.

Last year, Wells' business division is expected to exceed KRW 203 billion in sales, a 30% increase from the previous year. Thanks to the growth of the non-education business division centered on Wells, the group's total sales are also expected to reach KRW 1.5 trillion last year. Since its establishment in 1985, Kyowon Group has expanded its business areas to include lifestyle culture, educational culture, hotels and leisure, and network marketing.

In particular, last year's performance increase was driven by strong sales of the new 'Wells The One' water purifier, a surge in air purifier sales, and an expanded product lineup. Entering the home beauty device market with the launch of LED masks and introducing various rental services through collaboration with Samsung Electronics on dryers and clothing care devices led to a rapid increase in new accounts.

Additionally, Wells introduced the 'Homecare Membership,' which allows customers to directly select the products and timing for home care in a customized manner. This eliminates the hassle of applying one-time or waiting, as customers can choose the products and maintenance schedules they want to receive services for. The 'Wells Home Master,' which provides professional product management technology and services, visits regularly over three years according to the product management cycle.

Wells has expanded its business scope from existing rental appliances such as water purifiers and air purifiers to all areas of daily life, including mattresses and health and beauty devices. Starting this year, it will actively reorganize its brand system. In December last year, it unveiled a new brand identity. Through the slogan 'Lifestyle Customized Solutions,' the goal is to expand its influence as a health appliance brand covering all aspects of daily life.

Dividing rental services into five categories?water and air, living environment, kitchen, and biorhythm?Wells plans to integrate artificial intelligence (AI) and provide solutions optimized for customers' lifestyles. Furthermore, based on big data, AI will analyze customers' living habits to build solutions that propose optimal activities tailored to each individual.

Chairman Jang Pyung-soon of Kyowon Group emphasized the importance of AI and data utilization to employees in this year's New Year's address. The group plans to strengthen data management and find ways to connect work with AI to create the most suitable AI ecosystem for the group.

A Wells representative from Kyowon Group said, "Wells' new vision is to become a brand that promises customers a healthy life, beyond simply selling health appliances," adding, "By continuously introducing products and services more closely related to customers' lives, we will increase customer trust and further expand our position in the health appliance market."