LG Electronics surpasses 130 subscription brand shops in Malaysia, expanding 'K-subscription' footprint

The home appliance subscription business pioneered by LG Electronics is taking hold overseas as a distinct consumer lifestyle. The company has expanded its subscription-dedicated brand shops in Malaysia to 130 locations, with industry observers saying it has successfully established the home appliance subscription model as a new market both at home and abroad.

LG Electronics recently opened its 130th subscription-dedicated brand shop at Sunway Pyramid Shopping Mall in Selangor, making it the largest single-brand subscription network in Malaysia's home appliance market. The company currently operates 130 shops across the country — 58 in central Malaysia, 29 in the north, 23 in the south, 15 in East Malaysia and five along the east coast.

LG Electronics launched its subscription business in Malaysia in 2019, starting with water purifiers before expanding the lineup to large appliances including washing machines, refrigerators and air conditioners. The company has recently surpassed 300,000 cumulative subscription units sold and crossed the 10,000-unit mark in monthly subscription sales.

Industry observers say LG Electronics' Korean-style home appliance subscription model is successfully taking root in Malaysia's consumer market. Malaysia already had an established water purifier rental and maintenance service culture, and Korean brands including Woongjin Coway and Cuckoo have entered the market in force, raising consumer familiarity with regular-maintenance service models.

Malaysia's hot and humid climate has also fueled subscription demand, analysts say. With high temperatures and humidity year-round, residents rely heavily on washing machines, refrigerators and air conditioners, driving strong demand for hygiene upkeep and performance maintenance. Home appliance subscriptions bundle regular maintenance services with product use, making the model a natural fit for local consumers' lifestyles.

The lower upfront cost of premium appliances is another factor driving subscription growth. Malaysian consumers tend to prefer spreading costs over a set period rather than paying a lump sum for high-end products. The subscription model — which bundles purchase and maintenance costs into a single recurring payment — has emerged as a practical alternative.

Malaysia also serves as a key hub for LG Electronics' broader overseas subscription expansion. Starting from Malaysia, the company has extended its subscription business to Thailand, Taiwan, Singapore and Vietnam. In Thailand, cumulative subscription members have surpassed 30,000. In Taiwan, sales of major product categories — including air conditioners, washing machines and air purifiers — grew anywhere from twofold to twentyfold within the first year of launching subscriptions.

Choi Jeong-won, head of LG Electronics' Malaysian subsidiary, said the company would continue expanding its subscription business so customers can experience premium home appliances more flexibly and conveniently. "Through this, we aim to help local customers enjoy a better lifestyle," he said.

Meanwhile, LG Electronics has positioned its subscription business as a core pillar of qualitative growth. The company posted 640 billion won ($416 million) in subscription sales in the first quarter of this year, up 15 percent from the same period a year earlier. If the growth trajectory holds, annual subscription sales are expected to surpass last year's 2.5 trillion won and reach the 3 trillion won range this year.

LG Electronics' subscription sales came close to 2.5 trillion won last year. Since the company began scaling up large appliance subscriptions in 2022, the average annual growth rate has been around 40 percent. While the bulk of subscription revenue has so far been generated domestically, the company plans to gradually increase the share of overseas sales going forward.