LG Electronics launches subscription service to boost hyper-personalization

Lyu Jae-cheol, head of the Home Appliance & Air Solution (H&A) at LG Electronics announces at a press conference held at LG Science Park in Gangseo District, western Seoul, on July 25. [Photo by Yonhap]

South Korea’s LG Electronics Inc. has introduced a new service that allows customers to use various services in a package with a regular subscription, going beyond simply selling home appliances. The company has also developed a dedicated chip for home appliances to optimize the service.

“We aim to grow the number of our subscription service users to exceed that of product buyers,” said Lyu Jae-cheol, head of the Home Appliance & Air Solution (H&A) at LG Electronics, as the company unveiled its strategy for “Upgradable Appliances 2.0” at LG Science Park in Gangseo District, western Seoul, on Tuesday.

Upgradable Appliances 2.0 is a hyper-personalized service that evolved from the first generation of Upgradable Appliances with new features added.

After completing a three-step “life pattern analysis” on the LG ThinQ app, features optimized for each user are automatically installed on the delivered product.

Consumers can also use products through a subscription service instead of buying them. The existing rental service will be expanded to a subscription service. Subscription periods can be selected between three and six years.

Washing machines can be subscribed for 30,000 to 50,000 won ($23.5-39.1) per month depending on the contract period with credit card discounts of up to 23,000 won. After-sales service is provided free of charge during the subscription period.

What sets it apart from existing rental services are the additional services for house chores that come with it. It collaborates with partner companies to provide a variety of household services, from dry cleaning to cleaning, detergent delivery, and side dish delivery.

Depending on the type of service they subscribe to, customers can receive a discount coupon or earn points back every month. Users can sign up or cancel the service at any time.