New Massage Chair Model Released After 4 Years
Plant Cultivator Also Scheduled for Release This Year
Beauty Device Pra.L Expands to Hair Loss Treatment Devices
[Asia Economy Reporter Ki-min Lee] LG Electronics, which has grown to become the second-largest company in South Korea in terms of home appliance rental accounts, is gaining attention by expanding its product lineup not only with hygiene-focused new appliances such as dryers and clothing care devices but also with health and beauty products.
According to industry sources on the 1st, LG Electronics is expected to surpass its target of 2.7 million home appliance rental accounts by the end of this year. As of the end of last year, LG Electronics had 2.04 million rental accounts, but it increased the number by 350,000 in the first half of the year, reaching a total of 2.39 million accounts. Rental business sales also exceeded 130 billion KRW for the first time in a quarter, recording 131.7 billion KRW in the first quarter of this year, and achieved a quarterly record high of 139.4 billion KRW in the second quarter.
Along with care solution services, various rental home appliance items are cited as key factors for the success of LG Electronics' rental business. LG Electronics has expanded its rental items from hygiene appliances such as water purifiers, air purifiers, bidets, dryers, and stylers, which are considered the main products in the existing rental market, to new appliances.
Recently, ahead of the Chuseok holiday, LG Electronics introduced a new health appliance, a massage chair, for the first time in four years. The newly launched premium massage chair, LG Healing Me Maldives, features voice recognition functionality. Customers can adjust the massage intensity and course using only their voice while using the chair. It is sold for a lump sum of 4.4 million KRW but is also available for rental at 99,900 KRW per month. Ryu Jae-cheol, Head of the Living Appliance Division at the H&A Business Headquarters, explained the background of the new massage chair launch, saying, "As the time spent at home increases and customers' needs to take care of their own health grow, massage chairs are becoming health appliances for the whole family."
LG Electronics has attracted customer attention by expanding its beauty device Pra.L product line beyond the LED Derma Mask to include six items such as cleansers. Although these products are sold directly to customers by LG Electronics, rental specialists purchase Pra.L through business-to-business (B2B) transactions and offer them as rental products to customers. LG Electronics plans to further expand the Pra.L product line to include hair loss treatment devices. Named LG Pra.L MediHair (model: HGN1), this product was clinically tested at Bundang Seoul National University Hospital, where participants who used it three times a week for 16 sessions showed a 21.64% increase in hair density per square centimeter (㎠) compared to before use, and hair thickness increased by 19.46%. It has also received medical device approval from the Ministry of Food and Drug Safety as a 'Class 3 medical laser irradiator.' An industry insider explained, "Since the domestic hair loss market is estimated to be around 4 trillion KRW annually, the strategy is to pioneer new products and maximize growth."
Moreover, LG Electronics plans to release a plant cultivation device this year, which is expected to become a battleground for rental companies. The device was first showcased at CES 2020, the world's largest home appliance exhibition, earlier this year. The plant cultivation device, equipped with a system that artificially controls light, temperature, and nutrients to grow vegetables, is attracting customers who want indoor air purification and fresh food. Currently, only the rental company Kyowon has released a plant cultivation device, and other home appliance and rental companies are reportedly coordinating their release schedules.
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