Gaurav Pahwa is managing director Lotus Electronics
Backed by a 26-year legacy, the brand has 30 retail stores across nine cities. Pahwa, who holds a postgraduate degree in Business Management from the University of Kent, joined the family business in 2003. Gaurav Pahwa is managing director Lotus Electronics, a leading electronics retail chain in Central India. In an interaction he shared electronic buying trends this festive season, how RAM crisis has impacted gadget buying and more. Excerpts: Q. The RAM crisis has increased prices of smartphones, how has that impacted buying trends?
Because they expect prices to rise further, particularly those who have already identified the model they want, in fact, some consumers are choosing to buy faster. Because customer requirements and buying priorities are not identical across markets, these variations are important. Yes, component costs have gone up, and this has had an impact on smartphone pricing, but we are not seeing customers hold back from their purchases. This has made the timing of the purchase more important, as customers would rather make their purchase now than risk paying a higher price later. At the same time, consumers continue to look at the overall value of the smartphone and the features it offers rather than focusing only on the increase in upfront pricing. Performance, features and the overall experience remain important parts of the decision. This is where our finance and EMI options are playing a particularly important role. So, while higher component costs are influencing smartphone prices, we are not seeing a corresponding slowdown in buying intent. Consumers continue to upgrade, and financing is helping them manage the purchase more comfortably. Q. Is there a noticeable shift towards consumers choosing premium products across categories? Yes, premiumisation has been a growing trend over the past few festive seasons, and we are seeing it increasingly across categories. Customers are buying fewer products, but they are choosing better ones when they do make a purchase. Whether it is a bigger television, a better laptop or a full-size refrigerator, consumers are increasingly willing to invest more when they believe the product will offer stronger performance, better technology or greater utility over a longer period. This tells us that the purchase decision is becoming less about simply replacing an existing product and more about making a considered investment for the future. We are also seeing this behaviour extend beyond one particular category, with customers evaluating premium products across televisions, smartphones, laptops and appliances. At Lotus Electronics, our extended warranty plans also give customers greater confidence to move towards premium products. Knowing that they are covered well beyond the standard warranty period provides an additional layer of assurance when making a higher-value purchase. Overall, we believe the combination of stronger product expectations, long-term value, financing flexibility and extended protection is encouraging consumers to move towards premium choices. Q. Which categories do you expect to see maximum consumer interest and store visits this festive season? We expect large-screen TVs, premium smartphones and major appliances such as refrigerators, washing machines and ACs to attract the maximum consumer interest and store visits this festive season. These are categories where consumers often plan their purchases in advance, particularly when they are looking to upgrade their homes or replace existing products. Within televisions, larger screen sizes and premium models are expected to see strong interest as consumers increasingly look for a better viewing experience. Premium smartphones will also remain an important category as customers continue to look for better performance, features and overall user experience. Among appliances, refrigerators, washing machines and ACs are expected to benefit from festive demand as consumers evaluate both replacement and upgrade purchases. Laptops are also gaining popularity, while premium audio products such as soundbars and headphones are increasingly being considered as festive gifting options. Alongside the category demand, the overall purchase proposition will play an important role in driving conversions. We are running strong cashback offers on card purchases through the season, and these offers can encourage customers who are already considering a purchase to move towards a final decision. We typically see such benefits helping customers finalise their purchases in-store rather than continuing to wait. Overall, we expect a healthy combination of festive gifting, planned purchases and upgrade-led demand across these key categories. Q. Tell us about any noticeable differences in footfall, consumer preferences or category demand across markets where Lotus operates? Yes, each city is a little different, and we do see noticeable variations in footfall, consumer preferences and category demand across our markets. In a few of our more mature markets, we see stronger demand for premium and lifestyle products, where customers are more willing to explore higher-value options. In other cities, appliances and TVs lead the way, often linked to weddings and new homes being set up. Some markets also show a healthy mix of smartphones and large appliances, reflecting a combination of personal technology upgrades and household purchases. Consumers in different cities can have different needs depending on what they are upgrading and the type of purchase they are planning. At the same time, there are some common behaviours that we see across our markets. Customers are becoming increasingly research-oriented, spending more time comparing products and evaluating their options before making a decision. What stays constant across every market is our 6C philosophy: ‘Comfort, Convenience, Choice, Competitive rates, Care and Commitment’. This remains the foundation of how we serve customers and ensures that the quality of the customer experience remains consistent, regardless of which city they are in. Q. Despite e-commerce growth, what drives consumers to physical stores during the festive period? Trust remains one of the biggest factors driving consumers to physical electronics stores, along with the opportunity to see and experience the product before making a purchase. For big-ticket items such as televisions and appliances, customers want to touch the product, compare different models and understand the differences before deciding. This kind of physical experience is difficult to replicate completely online, particularly when customers are making a significant investment. The physical store also gives consumers access to expert advice, which becomes important when they are comparing brands, specifications, features and different models. Our after-sales support also plays a significant role in building confidence, particularly when customers are investing in big-ticket products. For many consumers, the purchase does not end once the transaction is completed; they also want to know that they will have support afterwards. This is why the physical store continues to remain relevant despite the growth of e-commerce. Customers know that they are not just buying a product, but also getting trust, expert assistance, after-sales support and peace of mind throughout the ownership journey. You use AI every day. Now get your AI Quotient. Take the AIQ test.