At the Samsung Store in Seocho, a manager explains the “AI Subscription Club” to visiting customers. (Image provided by Samsung Electronics)
SEOUL, Dec. 1 (Korea Bizwire) – Samsung Electronics has officially launched its home appliance subscription service, directly competing with LG Electronics, which has established a strong foothold in this sector. Starting December 1, Samsung will roll out its “AI Subscription Club” through Samsung stores nationwide and its online platform, Samsung.com.
The service allows customers to pay a monthly fee to use home appliances for a set period, reducing the initial purchase cost and making high-end products more accessible. The program covers a range of products, including TVs, refrigerators, washing machines, and vacuum cleaners, with over 90% of the offerings featuring artificial intelligence (AI) capabilities.
Tailored Plans and AI Integration
Samsung offers flexible subscription plans to meet various consumer needs. The All-In-One Plan includes the product, repair services, and optional care services. Customers can use a dedicated “AI Subscription Club Samsung Card” for up to 60 months and have the option to cancel mid-term.
The Smart Plan allows customers to purchase products while selecting only the services they need, with options for 36 or 60 months of use.
Through its SmartThings platform, Samsung leverages AI to deliver personalized care services. Subscribers receive a monthly “Care Report,” which provides insights into device diagnostics, usage patterns, and energy consumption.
Samsung has also introduced promotional benefits, including card discounts and partner collaborations, with plans to expand these partnerships to enhance customer perks further.
LG Electronics announced on July 11 that its subscription-based business model for premium home appliances is experiencing rapid growth. (Image courtesy of LG Electronics)
LG Electronics: A Proven Leader in Subscription Services
Samsung’s entry pits it against LG Electronics, which has been a pioneer in the home appliance subscription market. LG began its rental business in 2009 with water purifiers and has since expanded its offerings. By the third quarter of this year, LG’s subscription business exceeded ₩1 trillion in cumulative revenue, underscoring rapid growth.
Amid prolonged demand stagnation in the home appliance industry, subscription services are emerging as a crucial strategy to adapt to the evolving subscription economy and mitigate economic downturns.
Samsung’s Vision for AI
Yong-Hun Kim, Senior Executive at Samsung Korea, emphasized the company’s commitment to expanding AI-enabled services. “We aim to make the ‘AI Life’ accessible to more customers through an expanded subscription model,” he said. “With the launch of the AI Subscription Club, we’re cementing the association of AI with Samsung, advancing our vision of ‘AI for Everyone’ across all domains.”
This strategic move marks Samsung’s foray into a fast-growing market segment, setting the stage for a heated competition with LG and potentially reshaping consumer engagement with home appliances.
Kevin Lee (kevinlee@koreabizwire.com)
