Full-scale Launch of Subscription-Only Brand Shop
Business Expansion in Malaysia, Thailand, and Taiwan
Subscription Revenue Approaches 2 Trillion Won Last Year... Key Growth Driver for the Company
On August 12, LG Electronics announced that it had recently opened its first subscription-only brand shop for home appliances in Singapore and officially launched its services. As a result, the company is expected to accelerate the expansion of its global subscription business.
LG Electronics recently opened its first subscription-only brand shop in Singapore and is accelerating the expansion of its global subscription business by officially launching the service. LG Electronics representatives are celebrating the opening of the subscription-only brand shop in Singapore. Photo by LG Electronics
LG Electronics is prioritizing the expansion of its business in countries where the home appliance subscription market is already established or where there is significant customer demand for such services. Prior to Singapore, LG Electronics had already launched home appliance subscription services in Malaysia, Thailand, and Taiwan.
The home appliance subscription service offers professional care, including regular replacement of consumables and inspections, as well as free after-sales service (A/S), reducing the initial purchase burden. This service provides a new experience that goes beyond traditional ownership, allowing customers to use premium products more conveniently and flexibly. As a result, it is gaining popularity not only in Korea but also overseas.
LG Electronics is achieving visible results in overseas markets by combining the expertise it has accumulated in the Korean market with locally tailored strategies.
In Malaysia, the number of monthly subscription accounts surpassed 10,000 for the first time in May. In Thailand, the cumulative number of accounts reached 10,000 just nine months after the launch of the subscription service. Recently, dedicated spaces have been established in major cities such as Chiang Mai, Nakhon Ratchasima, and Songkhla to promote the service, and the company plans to continue expanding both online and offline customer touchpoints. In Taiwan, where the subscription market is still in its early stages, LG Electronics is working to raise awareness of its services and expand its business based on strong brand recognition.
LG Electronics began its subscription business in Korea in 2009 with water purifiers, and since 2022, it has expanded its offerings to include premium large home appliances, leading the home appliance subscription market. This business segment generated nearly 2 trillion won in revenue last year and has recorded an average annual sales growth rate of over 30% over the past five years, establishing itself as one of the main drivers of the company’s qualitative growth.
LG Electronics plans to actively attract customers in countries where it currently operates its subscription business by providing differentiated care services and expanding its product portfolio. At the same time, the company will continue to increase the number of countries where it launches new services, expanding its business in line with global consumer trends.
Lim Jungsoo, Head of HS/ES Subscription Business at LG Electronics, stated, "We will continue to lead the global subscription market by understanding local customers’ lifestyles and needs, and by growing our business based on region-specific products and strategies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
