'2 Trillion' Business Expansion... LG Electronics Expands Global Subscription Service

[Financial News] LG Electronics recently announced on the 12th that it has opened its first subscription-only brand shop in Singapore and is accelerating the expansion of its global subscription business. The subscription business is one of the company's main drivers, with sales approaching 2 trillion won last year and an average annual sales growth rate exceeding 30% over the past five years. LG Electronics expanded its target to premium large appliances from 2022, starting with the domestic water purifier subscription service in 2009.
LG Electronics is expanding its business by prioritizing countries where the appliance subscription market is already established or where consumer demand is high. Currently, the countries operating the global subscription business include Malaysia, Thailand, and Taiwan.
An LG Electronics representative explained, "Appliance subscription includes regular replacement and inspection of consumables, provides professional care and free after-sales service (A/S), and reduces the initial purchase burden. It offers a new experience that allows for more convenient and flexible use of premium products, gaining popularity both domestically and internationally."
According to LG Electronics, the subscription business is achieving visible results in the global market by combining local customized strategies with the know-how accumulated domestically.
In Malaysia, the number of monthly subscription accounts exceeded 10,000 for the first time in May this year. LG Electronics initially operated only water purifier subscriptions but expanded its target to large premium appliances such as air conditioners, refrigerators, and washing machines from 2023. As a result, other companies are also including large appliances in their services, leading market changes, according to LG Electronics.
In Thailand, the cumulative number of accounts reached 10,000 within nine months of starting the subscription service. Recently, dedicated spaces have been set up to promote the service, focusing on major cities such as Chiang Mai, Nakhon Ratchasima, and Songkhla. LG Electronics plans to continuously expand consumer touchpoints both online and offline. 
Taiwan is in the early stages of forming a subscription market, and LG Electronics is promoting the service based on brand recognition while pursuing business expansion. LG Electronics plans to continue increasing the number of new launch countries in the future and actively expand the business in line with global consumption trends. Lim Jeong-su, head of LG Electronics HS·ES Subscription Business, emphasized, "We will lead the global subscription market by understanding local consumers' lifestyle patterns and needs, and growing the business based on region-specific products and strategies."

kjh0109@fnnews.com Kwon Jun-ho Reporter