Explaining Samsung AI Subscription Club (Image provided by Samsung Electronics)
SEOUL, Jan. 20 (Korea Bizwire) — South Korea’s appliance giants, LG Electronics and Samsung Electronics, are locked in an increasingly fierce competition for supremacy in the growing subscription market, a strategic pivot aimed at addressing sluggish global demand.
Samsung, a late entrant to the sector, announced its latest move: the launch of the New Galaxy AI Subscription Club on January 24. This initiative targets Galaxy smartphone customers, offering 12- or 24-month subscription plans with perks such as a 50% trade-in value guarantee.
For 5,900 won ($4.50) monthly, subscribers can access the latest Galaxy smartphones at a fraction of the upfront cost. The program is part of a broader push to expand Samsung’s subscription offerings across its product lines.
Earlier this month, Samsung CEO Han Jong-hee signaled the company’s ambitions, stating, “Although we are late to subscriptions, we are providing more options tailored to consumer preferences, and the response has been positive.”
The company’s foray into appliance subscriptions began last December with the AI Subscription Club, which includes TVs, refrigerators, washing machines, and vacuum cleaners — over 90% of them AI-enabled. The company plans to include its AI companion robot, “Ballie,” in the subscription program following its release in mid-2025.
Meanwhile, LG Electronics, a pioneer in subscription-based services since its water purifier rental business in 2009, continues to dominate the market. The company has scaled its offerings to include over 300 products across 23 categories, including large appliances and B2B solutions like serving robots and digital whiteboards.
On January 24, LG is set to launch its premium massage chair, part of the Healing Me Objet Collection, for 49,900 won ($38) per month under a six-year contract. Subscriptions also include complimentary cleaning and maintenance services.
LG Electronics announced on January 19 that it is launching the ‘LG Healing Me Objet Collection Massage Chair ArteUP,’ equipped with emotional intelligence (AI). A model is seen experiencing the ‘LG Healing Me Objet Collection Massage Chair ArteUP.’ (Image provided by LG Electronics)
LG’s subscription success hinges on its robust care services, supported by its subsidiary, HiCare Solution, and an extensive network of trained “Care Masters.” CEO Cho Joo-wan highlighted, “The essence of subscription is not installment payment but care. Customers want to use appliances as if they are always new, which requires comprehensive care.”
The subscription model, allowing consumers to access premium products with minimal upfront investment, has proven lucrative for LG. The company aims to triple its 2024 subscription revenue of 2 trillion won ($1.5 billion) by 2030.
Market analysts view the intensifying competition as a boon for the industry. According to the KT Economic Management Research Institute, South Korea’s subscription economy, including appliances, is projected to reach 100 trillion won ($76 billion) by year’s end.
“Samsung’s entry into the subscription market is raising consumer awareness and driving sales,” an industry insider noted. However, they cautioned that a sustainable subscription model requires robust infrastructure and innovative offerings.
As LG and Samsung vie for dominance, their strategies underscore the growing importance of subscription services as a cornerstone for navigating a challenging global economic landscape.
An LG Electronics care specialist managing a product. (Image courtesy of LG Electronics)
Kevin Lee (kevinlee@koreabizwire.com)
