For most of us, appliance ownership has followed a simple model: purchase, use and discard. This has led to consumers owning appliances that are well past their prime or ultimately dumping them in landfills. In Singapore, something interesting is being devised by Electrolux. In partnership with Stripe, it has built Levande, an all-in-one appliance subscription platform that is available now in beta. Essentially, the program allows consumers to change appliances over time through a subscrip
bscription fee, while also aiming to reduce electronic waste.
A new ownership model
Levande saves consumers the upfront cost of buying an appliance outright—whether it’s a washing machine, a wine cabinet, a refrigerator, or a half-dozen other home appliances.
Subscribers pick the appliance that fits their need, subscribe to a plan for a fixed monthly fee, and get the appliance delivered and set up within 48 hours. They can upgrade the appliance or cancel the subscription at any time.
The service includes maintenance to ensure appliances last longer, and offers the option to subscribe or buy refurbished products.
Singapore handles about 60,000 tons of electronic waste each year, the equivalent of each Singaporean discarding 70 mobile phones.
With the subscription model, consumers are less likely to have a need to throw away unwanted appliances and used appliances are more likely to find a second home.
How it works
It’s been around six months since the beta launch of Levande, and the company is in the process of onboarding its early users and customers.
“Our appliance subscription includes setup, delivery, servicing, and a 48-hour replacement guarantee, giving users complete peace of mind,” Gaurav Julka, head of appliance as a service for APAC and MEA, Electrolux, told Inside Retail.
He explained that the company worked with Stripe to provide its customers with flexible subscription terms ranging from 6 months to 6 years, and users can renew or upgrade their subscription at any time.
“For instance, a typical young renter in Singapore may start with a top-load washing machine, but as they move from a single user to a couple and then to a family, they can upgrade appliances every few years,” he said.
Electrolux offers both new and refurbished appliances on subscription, which means that the top-load washer it collects from one subscriber can be subscribed to by a different household.
“We provide the same premium repair and replacement service levels for both refurbished and new products. In addition, we offer appliances with minor visual defects, such as dents, scratches, or torn packing, which cannot be sold in traditional channels, on subscription,” he elaborated.
Positive feedback
So far the company has received positive feedback and input from both its commercial customers, such as co-living spaces, and end users through its levande.com.sg platform.
“Our subscriptions address the needs of landlords and renters, whether it’s renters subscribing directly for themselves or landlords subscribing on behalf of renters based on their needs and tenancy duration,” Gaurav stated.
The company has received early feedback from the expat community in general, and its subscribers are excited about trying out products like dishwashers or air purifiers that are typically not part of every household.
“Co-living spaces also benefit from leveraging the Levande program, as we help reduce their upfront investment in appliances, provide a transparent operating cost with premium service levels, and ensure their tenants have a great living experience,” he explained.
The Gen Z and millennials
Guarav feels that Levande is an excellent example of an offering that is primarily tailored to Gen Z and millennials.
“Gen Z and millennial consumers are constantly looking to upgrade their lifestyle and invest in meaningful experiences – our subscriptions are a perfect fit,” he stated.
He is also seeing that younger consumers prefer to live ‘experiences’ instead of owning things.
“Affordability is another factor, some of our premium appliances require a decent upfront investment, with subscription it simply becomes an affordable and transparent fixed monthly cost,” he noted.
He went on to say that these consumers are also conscious about their impact on the environment, and they do care about brands being true to their sustainability promise.
According to Gaurav, the company is working on scaling its appliance subscription or appliance-as-a-service offer to multiple markets. He went on to say that its business strategy may evolve as it tests and learns from its pilot deployments.
In Australia, the company recently launched a subscription of water filters (filters in water dispensing fridges) under its Electrolux and Westinghouse brands.
Meanwhile, in Japan, it partnered with Rentio, a rental marketplace to offer our air purifiers on rental/subscription to the Japanese consumers.
Interestingly, in Sweden, the company has been running a pay-per-use robot vacuum as a service pilot since 2019 gaining excellent learnings and feedback from its early subscribers.