wells

General health and wellness appliance brand Wells is looking to expand its scope of business in the rental industry with a whole-new concept called “Shared Rental.”

Moving forward, Wells expects to deploy a “two-track” strategy spearheaded by its main lines of existing rental businesses (e.g. water purifiers, etc.) and new shared rental businesses, with both businesses playing an equal part in boosting the company’s growth in the market.

Shared rental is Wells’ attempt to respond more proactively and aggressively to rapidly changing market conditions and trends by subdividing the rental industry into smaller and more specific categories. The decision was driven in large part because of Wells’ desire to keep up with the remarkable growth of the rental market each year as well as diversifying and changing consumer demands.

Simply put, shared rental is not just Wells’ answer to the rapidly expanding rental market and fast-developing customer needs, it is a new paradigm Wells is proposing to the rental industry overall.

Wells’ new shared rental business is a form of rental business with a whole-new concept. It combines the advantages of conventional rental services, which is led by water purifier products, and the autonomy as well as freedom for customers to rent products autonomously and freely depending on their personal circumstances and needs. Shared rental business will revolve primarily around highly desirable products which consumers are hesitant to rent because of the price or contract length. Wells will offer these products at much more reasonable price levels and for shorter time frames to make sure customers can use the products they want without over-extending themselves financially.

The first product Wells is launching as part of its new shared rental business is the “Wells Farm” product, Wells’ vegetable growing platform.

With a shared rental program, customers can use the Wells Farm service, including a regular supply of vegetable seedlings customers want, at around KRW 20,000 per month. Wells Farm equipment (devices) will be rented out to customers free of charge, and shared rental program customers will be eligible for regular deliveries of organically grown vegetable seedlings as well as Wells’ hygiene care services. Customers can choose the specific types of vegetables they like or vegetables that fit their lifestyles, and sign shorter contracts - down to one year - which gives them much more autonomy over the decision to continue or discontinue using Wells Farm.

Vegetable seedlings come in four packages, and customers can switch to different packages throughout the duration of their shared rental contract for the Wells Farm platform. Vegetable seedlings selected by each customer are delivered every two months, and Wells’ cold-chain delivery system keeps vegetable seedlings as fresh as possible during delivery (all seedlings are delivered within 24 hours). Not only that, shared rental customers are eligible for Wells’ “Easy Care Service” where an expert Wells Farm engineer visits each household to perform maintenance every two months. The Wells Farm engineer checks the equipment for any malfunctions, and the vegetable seedlings for defects to make sure the vegetables grow at the desired rate and quality.

Moving forward, Wells plans to add more products to the Wells Farm vegetable growing platform to expand its shared rental lineup.

In particular, it is looking to launch products that can create synergies when used with conventional rental products such as water purifiers and bidets. Novelty products that consumers are really looking to try for themselves, seasonal products, trend-sensitive products, and products with high price barriers are expected to be given priority consideration when Wells adds new products to its shared rental portfolio. Consumers can expect new products offered as part of Wells’ shared rental programs in the coming months. Within this year, Wells is looking to launch home healthcare products.

An official at Wells stated, “We presented a new paradigm called ‘shared rental’ that lowers the entry barrier for various products to give more customers a chance to use the products they want to without the usual strings attached to rental contracts such as high price and long mandatory contract durations. Shared rental from Wells will become a key strategy in targeting younger customers who make purchasing decisions driven by personal taste and lifestyle. We hope our shared rental business can create synergy with our existing flagship rental business lines.” End of Document.