Samsung Electronics and LG Electronics kept their home appliance and TV businesses at a similar scale to last year despite reduced consumer spending caused by a domestic economic slowdown. They made up for revenue declines in traditional on- and offline channels with a "subscription model," helping them defend market share. The subscription business model, which covers even large appliances like refrigerators and washing machines, is drawing attention overseas because successful cases are hard to find outside Korea.
According to the "GfK Market Intelligence" analysis by market researcher NIQ on the 5th, the domestic home appliance and TV market recorded $8.5 billion (about 12.4865 trillion won) in sales in the first half of this year. Online channel sales came to $3.9 billion, down 3.3% from a year earlier, while offline sales fell 3.9% to $3.6 billion. The total market size during the period declined only 2.3% from the same period last year ($8.7 billion).
Against this backdrop, domestic home appliance companies that adopted subscription models are being credited with defending the market. According to market researcher Omdia, the global TV market (by value), which typically moves in tandem with appliance demand, fell 6.7% in the first half from a year earlier.
In fact, NIQ's survey showed the domestic subscription market posted $900 million in sales in the first half, maintaining the same scale as last year. While demand declined in traditional sales channels, sales of appliance and TV subscriptions did not decrease.
NIQ has included appliance and TV subscription sales, which began in earnest early last year, in offline channels for its survey. Offline channel sales grew from $2.0 billion in the fourth quarter of last year to $2.2 billion in the first quarter of this year. They also held at a similar level in the second quarter. In contrast, second-quarter online channel sales were $1.9 billion, down $200 million from the previous quarter.
A home appliance industry official said, "As market uncertainty increased, consumer spending contracted sharply early this year," adding, "Given the negative impact of the unusual situation, domestic home appliance and TV companies can be seen as having responded well to the market contraction in the first half."
◇ Home appliance subscriptions built by LG, market grows as Samsung joins
The home appliance and TV subscription model, which has taken root in the domestic market, is seen as a win-win business for both corporations and consumers. For corporations, it can generate new consumption while creating a new form of revenue in "maintenance and management." Consumers also benefit by accessing premium products at lower prices.
The domestic home appliance and TV subscription market was effectively pioneered and established by LG Electronics. LG Electronics expanded the know-how it accumulated from its water purifier rental (lending) business since 2009 to large appliances in 2022. In 2023, it changed the label from "rental" to "subscription," and significantly strengthened "care services" that not only lend products but also manage and maintain them.
LG Electronics currently provides services through about 4,000 "care managers" who manage subscription products on a regular cycle. Products available by subscription now number about 300, expanding beyond refrigerators, washing machines, air conditioners, TVs, and laptops to business-to-business (B2B) offerings such as frying-cooking robots and electronic whiteboards. LG Electronics Best Shop, the online brand shop, department stores, Etland, Homeplus Co., and Emart are among the diversified sales channels for subscription products, improving customer access.
LG Electronics' subscription business sales grew rapidly from 591 billion won in 2020 to 1.92 trillion won in 2024. On a cumulative basis through the third quarter of this year, it reached 1.89 trillion won, putting it on the verge of achieving "2 trillion won in annual sales."
The domestic home appliance and TV subscription market is seen as having entered full swing after Samsung Electronics joined in Dec. last year. Samsung Electronics expanded its subscription model, which started with large appliances, to mobile in Jan. This Sept., it introduced Blue Pass, a subscription-only offering that includes everything from product installation to after-sales service (AS), expanding the business. The range of eligible products has steadily increased, and subscribers can now use a total of 410 products across 21 categories (17 appliances and 4 IT).
◇ "A success story hard to find overseas"
The successful adoption of the domestic home appliance and TV subscription model is drawing attention overseas. CEO Rainer Lintner of IFA Management held the "IFA 2026 Korea media briefing" on the 2nd and said, "Korea's subscription model is a major business that has grown to account for a significant share of the market, so we find it interesting," adding, "It's a rational approach that can draw interest from consumers who had no intention of investing in products."
He also said, "The Korean market appears to have hit a growth ceiling due to a high share of premium products," but added, "The subscription model is a good idea to raise the premium share within total sales again." He added, "Some companies in Europe have introduced subscription models, but their sales are not growing as in Korea."
Professor Lee Eun-hee of Inha University's Department of Consumer Science said, "For younger consumers whose incomes are not relatively high, home appliance and TV subscriptions can be a good alternative," but noted, "It needs improvement that care expense is being added even to products like TVs and refrigerators that do not require ongoing maintenance."