9 out of 10 Malay People Know... Coway Leading the 'Water Purifier Hallyu'

Coway Goes to Malaysia... Introducing Korean-Style Rental and Codi Services
94% Awareness and No.1 Market Share... "Widening Gap with Latecomers"
Localization Strategy Hits the Mark... Also Obtained 'Halal Certification'
Over 1 Trillion Won in Overseas Sales This Year... "Strengthening Southeast Asia Marketing"

[Asia Economy Reporter Junhyung Lee] Coway is leading the "water purifier Korean Wave" in Malaysia. Thanks to the local subsidiary's steep annual growth, there is a possibility that overseas sales will exceed 1 trillion KRW this year. It is evaluated that Coway pioneered the Malaysian market, where the concept of rental service was nonexistent, through localization strategies. Coway has set a plan to accelerate its attack on the Southeast Asian market, starting from Malaysia.

According to German market research firm GfK on the 9th, the awareness of Coway water purifiers in Malaysia is about 94%. This means that more than 9 out of 10 Malaysians know Coway water purifiers. In addition, 81% of Malaysians consider Coway products when purchasing water purifiers. A Coway official stated, "We currently maintain the number one market share in the Malaysian water purifier market," adding, "We widened the gap with latecomers by leveraging professional rental services as a competitive edge."

Malaysian Performance Soars... Introduction of 'K-Rental'

Local sales continue to soar. According to Coway, last year the company's Malaysian subsidiary recorded sales of 708.5 billion KRW, a rise of about 35% compared to the previous year (526.3 billion KRW). The local sales for the first half of this year reached 477.1 billion KRW, which is 67.3% of last year's sales. There is speculation that Coway's overseas subsidiary sales could exceed 1 trillion KRW this year, thanks to its Malaysian performance.

The environmental characteristics of Malaysia are the background for Coway's success there. Malaysia's water supply infrastructure is relatively outdated, resulting in high demand for water purifiers. However, until the mid-2000s, the water purifier market was mostly composed of small and medium-sized companies, leading to low product quality and inadequate after-sales services such as filter replacement, according to industry sources.

In this situation, Coway saw potential in the local market. The company introduced a Korean-style rental system and the 'Codi' service to Malaysia in 2006, leveraging know-how accumulated domestically. Coway's "Korean-style business model" began attracting consumers by lowering the initial purchase cost burden. The Codi service, where product experts called Codis regularly visit consumers to manage water purifiers, increased trust in the product and brand.

Localization Strategy... Obtained 'Halal Certification'

Coway's localization strategy also played a role. The locally popular product, the 'Ombak Water Purifier,' was developed reflecting Southeast Asian cultural characteristics where hot water is commonly consumed. It features a separate hot water outlet and a six-level customized hot water system to expand choices. The Ombak water purifier was recognized for its design, winning the 2019 IDEA award, one of the world's top three design awards in the United States.

Coway's 'Ombak Water Purifier' launched targeting the Malaysian market.
[Photo by Coway]

In 2010, Coway obtained the first Halal certification for water purifiers in Malaysia with the slogan "Drinking water is also food." Halal certification is a system where government agencies in Islamic cultural regions grant certification marks to products that do not violate Islamic law. It is considered one of the essential requirements for foreign companies entering faith-conscious Islamic societies. According to the Korea Halal Certification Institute, 80.3% of Muslim consumers consider Halal certification more important than price when purchasing products.

Coway plans to strengthen local marketing to establish itself as the "No. 1 rental company in Malaysia." This is because Malaysia, a multicultural and multiethnic society, is seen as a "barometer" for the Southeast Asian market. Coway's selection of BTS (Bangtan Sonyeondan) as a global advertising model in March this year is also interpreted as part of its Southeast Asian market strategy. Southeast Asia, including Malaysia, has a relatively large BTS fan club called "ARMY." Coway also released a BTS advertisement video exclusively for Malaysia.

A Coway official said, "If we capture the hearts of Malaysian consumers, we believe there is a chance of success in other Southeast Asian regions," adding, "We plan to expand our environmental appliance lineup and actively carry out brand marketing to secure leadership in Southeast Asian environmental appliances."

This content was produced with the assistance of AI translation services.