Korean-style rental and management services are changing the dynamics of the water purifier market in Malaysia. Coway, which took its first step in the local market in 2006, maintains its position as the market leader, while CUCKOO Homesys’s subsidiary Cuckoo International Berhad confirmed the status of Korean brands once again by listing on the Bursa Malaysia Main Market on the 24th (local time).
According to Coway on the 30th, its Malaysian branch recorded sales of 526.3 billion won in 2019 and continued to grow, surpassing 1.09 trillion won in 2022 and 1.1584 trillion won in 2024.
Coway has been growing in the Malaysian market by first introducing the 'CODY' visit management service, which regularly replaces filters for consumers. In 2010, it obtained 'HALAL certification' targeting Malaysian customers, where 60-70% of the population is Muslim, and in 2015, it significantly expanded its local workforce to strengthen its market strategy.
CUCKOO, which entered the Malaysian market as a latecomer, is also continuing its growth in the market. After entering the market through a joint venture in 2015, CUCKOO surpassed 1 million rental accounts in just seven years. It has seen steady sales growth since 2019, surpassing 300 billion won in 2023, and recording sales of 368.3 billion won in 2024.
CUCKOO expanded its market through a customer-selectable rental program called 'GOOOD Plan,' allowing customers to choose rental expenses based on the duration. It also introduced a service reservation system through its application 'Cuckoo+' to enhance customer convenience.
The rise of Korean water purifier brands is intertwined with the income growth in Malaysia. According to the World Bank, Malaysia's per capita GDP grew nearly threefold from $4,083 (approximately 5.54 million won) in 2000 to $13,140 (approximately 17.93 million won) in 2024, making it the third highest among the 10 member countries of the Association of Southeast Asian Nations (ASEAN).
As income rises, the living standards of the middle and high-income classes have improved, increasing the demand for clean water. According to industry reports, Malaysia's rental market is showing an annual growth rate of about 10%, and the penetration rate of water purifiers remains at about 25%, indicating high potential for future growth.
Innovations in distribution, such as rental and regular management services, have also driven growth in the Malaysian market. Before Korean corporations entered Malaysia, it was common for consumers to replace filters themselves. In this context, companies like Coway and CUCKOO have garnered consumer support by providing regular management services.
Reducing the burden of initial purchase expenses through rental is also one of the factors of popularity. A Malaysian consumer, Li Hang Chi (24), noted, "Brands like Coway and CUCKOO are attractive not only for their quality but also for flexible purchasing methods like rental, good customer service, and regular management services, which make them appealing choices for users."
The local employment-based service provision method is also receiving positive evaluations. An industry insider explained, "Coway and CUCKOO hire personnel locally to perform management services such as water purifier filter checks, which creates a perception that as brands grow, employment for country nationals increases, leading to less resistance to Korean brands."
As the water purifier market is still in the early stages of expansion, how to maintain after-sales service systems is regarded as a key to long-term competitiveness. The industry anticipates that pressures to increase rental fees and management costs for service personnel may intensify, projecting that the balance of price and quality will be the battleground in the future.