Paid Members Increase by 24% Compared to the Previous Year
Electroland announced on the 15th that stores applying the paid membership system 'Land500,' introduced last year, saw a 31% increase in sales.
In May of last year, Electroland became the first in the home appliance retail industry to launch the paid membership program Land500. Land500 offers paid members, who pay an annual fee, special-priced products at offline stores at prices comparable to the lowest online prices, along with additional points and discount benefits. Since then, by the first quarter of this year, 26 out of 109 offline stores nationwide have been renewed as paid membership stores.
According to Electroland, from January 1 to March 31 this year, the total sales of the 26 Land500 stores grew by 31% compared to the first quarter of last year before renewal. Especially, the Icheon, Jakjeon, and Gyeonggi Gwangju stores, which were renovated early in the paid membership introduction period from May to June last year, recorded sales growth rates of 166%, 123%, and 101% respectively in the first quarter of this year compared to the previous year.
Electroland assessed this as an indicator showing that the home appliance consumption pattern, which shifted online during the COVID-19 era, is being brought back to offline stores through Land500's price competitiveness.
Along with sales growth, the number of paid membership subscribers is also increasing. Comparing the total number of paid members from the renewal opening date of each of the 26 Land500 stores to March 31 this year with the membership numbers before renewal during the same period last year, there was a 24% increase. The explanation is that the high discount benefits relative to the annual fee, no burden, and the periodic provision of Electroland points equivalent to the annual fee have driven the increase in membership.
Electroland aims for a performance turnaround in 2024 by expanding paid membership stores. Electroland has experienced poor performance for two consecutive years recently. It has confirmed the conversion of four existing stores to Land500 in May and plans to renew more than 40% of nationwide stores as paid membership stores within the year.
Kim Hyung-young, CEO of Electroland, said, "We aim to improve performance this year based on Electroland's paid membership system, which shows meaningful results even in the difficult home appliance market," adding, "We also plan to hold various offline events such as a Robot Festival and Children's Singing Contest to attract home appliance consumers who have largely shifted online back to offline stores. We ask for much interest and support for Electroland's 2024 activities."
Meanwhile, Electroland will hold a promotion in May to celebrate the first anniversary of Land500’s establishment, offering prizes worth 15 million KRW, including washer-dryers, air conditioners, and TVs, through a lottery for customers who renew their membership.
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