LG Electronics is expanding its proven subscription-service model from Malaysia to major markets across Southeast Asia. The move goes beyond customer consultations to enhance delivery, installation, maintenance, and repair services as the company builds subscriptions into a new growth engine.
LG plans to roll out the subscription-service model used in Malaysia across Thailand, Singapore, Vietnam, Taiwan, and other Southeast Asian markets. Thailand, Singapore, Vietnam, and Taiwan are among the markets where LG already operates its subscription business.
One key practice being extended overseas is the Transactional Net Promoter Score (T-NPS), a metric that measures customers' willingness to recommend a service or brand to others. By quantifying customer satisfaction, T-NPS enables more systematic customer management.
LG introduced T-NPS in Malaysia in April last year to improve service quality for subscription customers.
The company also plans to expand tailored services established in Malaysia, including digitized order confirmations and dedicated delivery vehicles, to other markets. It will further strengthen local capabilities by establishing specialized maintenance organizations at overseas subsidiaries and shifting service infrastructure toward more personalized care.
LG will also expand its “Peace of Mind Report” service to provide more detailed care and maintenance for subscription customers. The report provides contract information and product inspection results, and LG plans to introduce it gradually in additional markets, starting with Malaysia.
Malaysia was the first overseas market where LG launched its subscription business in 2019.
LG Electronics Malaysia has improved its subscription consultation-notification system and refined its delivery and installation processes. As a result, its first promised-date compliance rate for deliveries and installations rose from 81% to 84%, while its final installation appointment compliance rate improved from 93.2% to 99.7%.
Cumulative sales of LG subscription products in Malaysia have surpassed 300,000 units.
LG aims to strengthen its medium- to long-term growth foundation by extending the subscription system to other countries. The company is fostering subscriptions as a core business to generate stable revenue and accelerate its transition into a service-oriented company.
LG's goal is to gain an early lead in the global home-appliance subscription market. The company has outlined a plan to expand annual revenue from its appliance subscription business from around KRW 2 trillion last year to more than KRW 6 trillion by 2030.
