LG Electronics recently opened its first subscription-only brand shop in Singapore and is accelerating the expansion of its global subscription business.
LG Electronics noted on the 12th that it is prioritizing expansion in countries where the home appliance subscription market is already established or in high demand. Currently, the countries operating global subscription businesses include Malaysia, Thailand, and Taiwan. Home appliance subscriptions provide specialized care that includes regular replacement of consumables and inspections, as well as free service, characterized by a lower initial purchase burden.
LG Electronics' subscription business is achieving results in the global market with a strategy tailored to local needs combined with know-how accumulated in the domestic market. In Malaysia, the number of monthly subscription accounts surpassed 10,000 in May this year. Thailand achieved a cumulative account number of 10,000 just nine months after launching the subscription service. LG Electronics plans to continue expanding online and offline customer touchpoints by establishing dedicated spaces to promote its services in major cities such as Chiang Mai, Nakhon Ratchasima, and Songkhla. Taiwan is in the early stages of market formation for subscriptions and is promoting service awareness based on brand recognition to expand its business.
LG Electronics has led the home appliance subscription market by starting with water purifier subscription services in Korea in 2009 and expanding to premium large appliances since 2022. Last year's subscription business revenue reached 2 trillion won, and the average annual revenue growth rate over the past five years has exceeded 30%, establishing itself as a key driver of the company's qualitative growth.
LG Electronics plans to actively expand its business in line with global consumer trends by attracting customers through differentiated care services and an expanded product portfolio in countries where it currently operates subscription businesses, while continually increasing the number of newly launched countries.
Lim Jeong-soo, head of LS/ES subscription business at LG Electronics, said, "We will identify local customers' lifestyles and needs and grow the business based on region-specific products and strategies, leading the global subscription market."