[Edaily Reporter SHIN MIN JOON ] As the domestic home appliance market faces a slump due to high inflation and a deteriorating real estate market, the two major players in the home appliance retail sector— LOTTE Himart(071840)and Electronics Land—are seeking to turn the tide. LOTTE Himart is focusing on boosting customer loyalty by strengthening its “lifetime care” services, such as extending warranty periods. Electronics Land is aiming to reverse the downturn by expanding its “Digital Concentrated Stores” (DCS) tailored to the MZ generation.

According to industry sources on the 5th, LOTTE Himart recorded sales of 1.3686 trillion won in the first half of this year. During the same period, it posted an operating loss of 13.9 billion won. Sales decreased by 1.8% compared to the same period last year. The operating loss widened significantly from 600 million won the previous year.

A LOTTE Himart official explained, “This was due to the slump in the home appliance market and the deterioration of the real estate market.”

SY CO., LTD., the operator of Electronics Land, reported sales of 521.4 billion won and an operating loss of 20.4 billion won last year. Sales decreased slightly from 522.0 billion won the previous year. The operating loss widened compared to the previous year’s figure of 17.2 billion won.

LOTTE Himart and Electronics Land are aiming to turn their performance around through differentiated survival strategies. LOTTE Himart has placed a strong emphasis on strengthening its lifetime customer care services. To expand ongoing engagement with customers, LOTTE Himart is diversifying its lifetime home appliance care services—beyond mere sales—to include △cleaning, △repairs, △relocation and installation, and △insurance, all of which customers need after purchasing appliances.

In particular, LOTTE Himart’s appliance cleaning service stands out because it covers all appliances sold in-store, as well as those purchased online at SamsungElectronics(005930)and LGELECTRONICS(066570). For this service, LOTTE Himart’s specialized Customer Satisfaction (CS) Masters visit customers’ homes equipped with the necessary tools.

LOTTE Himart also provides its own after-sales service (AS) for a wide range of domestic and international brands. Customers can receive after-sales service through LOTTE Himart for products from domestic and international brands that are difficult to find due to a lack of service centers or that do not operate their own service centers.

For large appliances and IT appliances, customers can use their products with greater peace of mind through extended warranty services and damage protection insurance. Typically, the basic quality warranty period provided by manufacturers and the period during which they are responsible for after-sales service range from one to two years. The problem lies in damage or malfunctions that occur after the warranty period expires.

Since home appliances are generally expensive, the cost burden of repairs or service after the warranty period ends cannot be ignored. To help reduce this burden, LOTTE Himart offers an extended warranty service that extends the warranty period to up to five years at the time of purchase. This has already begun to attract more customers. The percentage of customers purchasing both appliances and services (cross-purchase rate) rose from 15% in 2023 to 52.5% in the first half of this year.

LOTTE Himart will also launch “Hi-Mart Mobile Care” on the 28th. Hi-Mart Mobile Care expands the scope of its existing service—which focused primarily on damage coverage—to include △loss, △theft, △battery replacement, and △financial fraud and erroneous transfers. The coverage period for Hi-Mart Mobile Care has also been extended to a maximum of three years.

Electroland has shifted its business strategy to attract younger generations and new purpose-driven customers. This is because, as high inflation and the real estate market downturn persist, there has been an overall decline in purchases of large home appliances—which were previously the main source of demand for home appliance retailers—from customers moving homes or buying wedding gifts, as well as from the 40-50 age group.

Electroland is expanding its Digital Concentration Stores (DCS) to target the 20s and 30s demographic, who show a high interest in “deskterior” and PC and gaming devices. At DCS locations, customers can directly compare and experience a variety of IT and gaming devices—including custom-built PCs, monitors, keyboards, and mice—all in one space.

DCS also provides consultation on PC configurations tailored to customers’ needs and budgets. DCS focuses on delivering personalized IT shopping experiences that go beyond simple product sales. Since 2024, Electronics Land has continued to expand its DCS stores and currently operates 22 company-owned locations nationwide.

Centered around “GetPlay” in Yongsan—which was newly launched last June—ElectroLand is also expanding its customer reach by hosting pop-up events featuring game and anime intellectual property (IP) as well as subculture content. “GetPlay” refers to a space that combines the sale of game and anime-related merchandise, pop-up stores, and hands-on experiences with high-spec PCs and gaming devices.

Through GetPlay, Electronics Land aims to attract customers in their teens and early 20s—a demographic distinct from the primary customer base of traditional home appliance stores. In fact, there is a growing trend of customers who visit GetPlay specifically for game IP pop-ups and merchandise using the high-spec PC experience zone and then browsing the DCS store as well. This demonstrates the customer-drawing effect of linking content with hands-on IT product experiences.

An industry insider in the home appliance retail sector stated, “Amid the strengthening of direct sales by manufacturers such as SamsungElectronics and LGELECTRONICS, as well as the onslaught of e-commerce, it has become difficult for home appliance retailers to survive using traditional sales methods,” adding, “It appears that strategic changes necessary for their survival are now in full swing.”