Finshots Daily Will appliance subscriptions work in India?
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Apr 21, 2025 The discussion centers on the growing trend of appliance subscriptions in India. Major companies like LG and Samsung are diving into this market. Factors such as urban lifestyle shifts and rising incomes are examined. Challenges like logistics and customer experience could play a crucial role in determining success. It's an intriguing look at whether this subscription model can truly thrive in the Indian market.
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Growth Drivers for Appliance Subscription
- Appliance subscription has strong growth potential in India, fueled by changing urban lifestyles and financial benefits.
- Rising incomes and demand for premium appliances also push this market forward.
RentoMojo's Subscription Success
- RentoMojo successfully grew its appliance rental, becoming its biggest revenue stream.
- In FY24, revenues jumped 60% with profits soaring 67%, showing market acceptance.
Risk of Low Subscription Retention
- Indian consumers are value conscious and avoid paying for unused subscriptions.
- Hardware subscriptions likely face bigger challenges than software ones due to less continuous usage.