LG Electronics Renames Rental Brand to 'Gajeon Gudok'... Accelerates Future Business

LG Electronics, expanding its home appliance subscription business, is changing the rental business brand name for integrated operation with the existing rental business.

On the 30th, LG Electronics announced that its rental brand name will change from 'LG Electronics Rental' to 'LG Electronics Home Appliance Subscription' starting next month on the 1st. LG Electronics introduced its home appliance subscription as "LG Electronics' unique life-customized subscription service that allows customers to freely choose the desired home appliances along with convenient care services tailored to their lifestyle."

The LG Electronics subscription service features the ability for customers to set the desired usage period from 3 to 6 years. Customers can also freely select subscription product options and supported services. These services are provided through external partners. The types of services include six categories such as detergent and dairy product subscriptions, home cleaning, and item storage. Using subscription products and services together is not only economical but also reduces household labor. After-sales service (A/S) for products is also free during the subscription period.

Ryu Jae-cheol, President of LG Electronics H&A Division, introducing 'UP Appliances 2.0,' which transforms home appliances into smart home solutions, at LG Science Park in Magok, Seoul, on the 25th of last month / Photo by LG Electronics

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LG Electronics explained that the reason for expanding the home appliance subscription business is to secure future growth engines. LG Electronics views subscription-based home appliances as a core customer relationship-focused business that establishes continuous connections with consumers. The existing rental business has a solid foundation, with an annual average growth rate (CAGR) exceeding 30%, which also boosts confidence in the subscription business. LG Electronics recently unveiled the 'UP Home Appliance 2.0' strategy, including the expansion of the subscription business.

Ryu Jae-cheol, President of LG Electronics H&A Business Division, said, "UP Home Appliance 2.0 is the starting point for expanding the home appliance business portfolio into a service-based business," adding, "We will transform the home appliance industry trend into Home as a Service (HaaS) and redesign customers' entire lifestyle."

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