Hello Mobile "30% of USIM Subscribers Choose 'Convenience Store USIM'"

Expansion of Local Consumption Due to COVID-19
Trend Towards Considering Accessibility and Convenience in USIM Subscriptions

Photo by LG HelloVision

[Asia Economy Reporter Kim Heung-soon] As local consumption expands due to the impact of the novel coronavirus infection (COVID-19), convenience stores are emerging as a major distribution channel for budget phones.

According to LG HelloVision Hello Mobile on the 26th, 30% of new budget phone USIM subscribers this year have chosen 'convenience store USIM,' and the 'Emart24 USIM' launched last month is also seeing a rapid increase in subscriptions from urban consumers.

The proportion of convenience store USIM (Emart24, CU) subscriptions among new Hello Mobile USIM customers increased by 10 percentage points compared to the early stage of convenience store distribution partnerships last year, when it was in the low 20% range. The subscription rate in the third quarter rose by 13 percentage points from the first quarter, exceeding 35%. This year, the USIM subscription rate among all new Hello Mobile customers is approaching 70%.

The Emart24 USIM, released last month, sold out in Yeouido and Gangnam areas with many office workers within a day, and an additional 4,000 units were ordered within a week.

Convenience store USIMs are especially well received by young consumers. According to Hello Mobile, as of last year, half of the subscribers were in their 30s and 40s, and including those in their 20s, the proportion reached about 70%. By region, subscribers were concentrated in metropolitan areas such as Seoul, Gyeonggi Province, Incheon, and Busan.

Hello Mobile has set a goal to accelerate distribution innovation based on convenience stores in the second half of the year to expand the budget phone USIM market size. To broaden the main customer age group centered on the 30s and 40s to their family generations, they plan to promote ▲expanding customer contact points (increasing CU USIM sales stores) ▲diversifying rates (launching ultra-low-cost data safety products, etc.) ▲strengthening promotions targeting convenience store visitors.

Han Jeong-ho, head of LG HelloVision's mobile business, said, "Convenience store USIMs are expanding budget phone customer contact points and increasing the foot traffic effect of convenience stores," adding, "As the number of consumers seeking self-supplied phones combined with USIMs has greatly increased this year, we will further strengthen accessibility to convenience store USIMs."