Impact of Prolonged COVID-19... Significant Increase in New Water Purifier Rental Subscriptions

Hyundai Rental Care's 'Hyundai Quming' Water Purifier Records Record High of 14,000 New Subscription Accounts
Demand Shifts from Bottled Water Purchase to Water Purifier Rental Amid COVID-19 Impact

[Asia Economy Reporter Kim Cheol-hyun] Due to the prolonged spread of the novel coronavirus infection (COVID-19), new subscriptions for water purifier rentals are significantly increasing. As interest in hygiene grows amid COVID-19 and consumers who usually purchased bottled water at large supermarkets begin seeking water purifiers to reduce external contact, demand is rapidly rising.

Hyundai Rental Care, a total home care company affiliated with Hyundai Department Store Group, announced on the 7th that the number of new subscription accounts for the 'Hyundai Quming' water purifier in May reached 14,000, a 44% increase compared to the same period last year. Considering that Hyundai Rental Care's average monthly new subscription accounts for 'Hyundai Quming' water purifiers typically range from 7,000 to 8,000, this represents nearly a twofold surge. Accordingly, the total number of new subscription accounts for Hyundai Rental Care last month also increased by 32% compared to last year.

Hyundai Rental Care attributes this sharp rise in new subscription accounts for 'Hyundai Quming' water purifiers to changes in consumers' lifestyles due to the prolonged COVID-19 pandemic. A Hyundai Rental Care official explained, "In March and April, when COVID-19 began to spread in earnest, the number of new subscription accounts for Hyundai Quming water purifiers increased by more than 2,000 compared to last year, and in May, it rose by more than 4,000, more than double that amount."

In particular, with growing interest in hygiene, models such as the 'Quming S Plus Sterilization Cold and Hot Water Purifier' and the 'Quming The Slim Hidden Care Water Purifier,' which have enhanced sterilization and hygiene functions, saw new subscription accounts surge more than fivefold compared to last year. The effect of actor Kang Ha-neul, who was hired as the advertising model, is also considered to have contributed to the expansion of new water purifier subscriptions. Hyundai Rental Care began broadcasting and online advertisements themed "Pragmatic Life" featuring Kang Ha-neul from last month. In fact, new subscription applications received online in May increased more than threefold compared to May last year. Most customers applied for the 'Quming The Slim Hidden Care Water Purifier' advertised by Kang Ha-neul.

To respond to the increased demand for water purifiers, Hyundai Rental Care plans to further strengthen the 'Hyundai Quming' water purifier product lineup. New ice water purifier models and renewed versions of existing direct water cold and hot purifiers are expected to be launched as early as this month. Additionally, the company plans to expand its water purifier sales and service personnel by more than 10% compared to before.

Jung Yoon-jong, Executive Director of Sales Planning at Hyundai Rental Care, said, "The two-track strategy utilizing cost-effective product lines and premium product lines with enhanced design and functions is shining even more through the recent spread of untact culture. Not only have new subscription accounts increased this year, but sales growth has also continued steadily, so we expect sales in the second quarter to exceed 30 billion KRW for the first time since the company's establishment."