LG Electronics Inc. has introduced a subscription service in Singapore for home appliances ranging from water purifiers to air conditioners, refrigerators and washing machines as the South Korean company bets big on the subscription business to generate a steady stream of profits.
On Tuesday, LG said it recently opened a subscription-only brand store in the city state, following earlier launches of the service in Malaysia, Thailand and Taiwan.
Appliance subscriptions include regular replacement of consumables, maintenance and free after-sales service.
They are gaining popularity particularly among younger consumers as they can use premium appliances at a fraction of the purchase cost.
LG has been expanding the offering of subscription services beyond water purifiers to large premium appliances, supported by localized marketing.
In Malaysia, its monthly subscription accounts surpassed 10,000 for the first time in May. In Thailand, the service reached a cumulative 10,000 accounts within nine months of launch.
Recently, LG has set up dedicated spaces in major Thai cities, including Chiang Mai, Nakhon Ratchasima and Songkhla, to promote the service.
The subscription business has become one of LG’s key growth drivers. In 2024, it generated nearly 2 trillion won ($1.4 billion) in revenue and has grown by more than 30% a year on average over the past five years.
“We’ll lead the global subscription market by tailoring products and services to local lifestyles and needs,” said Lim Jung-soo, head of LG Electronics’ Home Solution (HS) and Eco Solution (ES) divisions.
The company is seeking to continue expanding its subscription business to new countries, while broadening its product portfolio and offering care services tailored to each market.
By Chae-Yeon Kim
Why29@hankyung.com
Yeonhee Kim edited this article.
