South Korea's retail and home furnishing industries are expanding beyond selling products into services before and after purchase, including delivery, installation, repair and maintenance. As price and product range alone no longer set companies apart, convenience during the time customers actually use a product has emerged as a new competitive edge.
Lotte Hi-Mart began offering its Appliance Repair All-Care service on the 1st, covering repair costs for 34 categories of home appliances, according to the retail industry. While its earlier care services centered on new products sold by Lotte Hi-Mart, the new plan extends coverage to appliances customers already own. The service costs 50,000 won for two years and covers large appliances such as refrigerators, air conditioners, televisions and washing machines, as well as household and kitchen appliances and IT devices. It pays repair costs with no limit on the number of claims, up to 1 million won a year.
Furniture makers are also moving to stay engaged with customers after a sale. Hyundai Livart launched Gagusumteo on its official online mall, Livart Mall, last month, introducing a relocation and reinstallation service. The service disassembles furniture in use — including beds, sofas, built-in wardrobes and dressing rooms — moves it and reinstalls it. It is available not only for customers moving house but also for those rearranging furniture within their homes to change the look of a room. The company also offers a separate maintenance service that removes stains from sofas and mattresses using dry and wet cleaning methods.
Coupang introduced a free furniture warranty and damage insurance program last month. The product covers repair costs if furniture bought on Coupang is damaged by an external impact after purchase or breaks down after the manufacturer's basic warranty expires. Coverage runs for up to three years from the delivery date, with compensation limits ranging from 100,000 won to 5 million won. The program currently applies to major brands including Iloom, Casamia, Hanssem, Desker and Sidiz, and Coupang plans to expand coverage in stages.
Shinsegae Casa has introduced its Materasso subscription service, which combines regular maintenance with a subscription model. Customers pay a subscription fee to use a mattress. The company also offers a Care Plus plan that includes scheduled visits for maintenance and mattress cleaning.
"The push to expand care services in the appliance and furniture industries may weigh on costs in the short term, but over the medium to long term it is part of an investment in strengthening relationships with customers," an industry official said. "For appliances and furniture, which are replaced only after long intervals, consistent after-sales service can raise customer satisfaction and trust and encourage repeat purchases down the road, and the services themselves can also become a new source of revenue."
