South Korean electronics giant LG, the manufacturer and distributor of electrical appliances, plans to extend its subscription service for appliances to Thailand.
Amnaj Singhachan, head of marketing at LG Electronics (Thailand) Co Ltd, expressed optimism that the Bank of Thailand's rate cut would help ease household debt and increase consumer purchasing power, which should help the electrical appliance sector.
LG Electronics (Thailand) is offering the electrical appliance subscription programme amid a stagnant economy, targeting a wide range of consumers, ranging from members of Gen Z to young married couples.
"This will encourage consumers to buy premium electrical appliances," said Mr Amnaj.
Thailand is the fourth country in Asia in which the service has been introduced, following South Korea, Malaysia and Taiwan, according to LG Electronics (Thailand).
Sunghan Jung, president of LG Electronics (Thailand), said the subscription business trend is rapidly expanding worldwide, and LG sees great potential for growth in this sector.
"In Thailand, the LG Subscribe business is still relatively new, but we see significant growth potential. We aim to position this business as a strong player in the market over the next three years," said Mr Jung.
Mr Amnaj said the company aims to gain 40,000 customers, with a revenue target of 1 billion baht set for 2025.
The company aims to woo 75,000-80,000 customers by 2026, generating 2 billion baht in revenue, and it hopes to generate 3 billion baht in revenue in 2027.
LG Subscribe increases consumer access to LG's premium products and services via flexible monthly payment plans, which requiring consumers to use their credit card in order to participate in the programme.
The company is also considering launching the programme in the US and Europe, said Mr Amnaj.
The service covers small appliances such as water purifiers, vacuum cleaners, air purifiers, and televisions, along with larger appliances such as washing machines, dryers, clothing care solutions (known as LG Styler), refrigerators and air conditioners.
