Business2 min
Lotus Electronics' Gaurav Pahwa: RAM Price Hike Isn't Slowing Festive Gadget Buying
Shoppers in Central India are buying phones sooner, spending more on fewer products and leaning on EMIs, says the retail chain's managing director.
Rising memory chip costs have pushed up smartphone prices, but Indian shoppers are not backing off. Gaurav Pahwa, managing director of Lotus Electronics, says some customers are actually buying sooner this festive season because they expect prices to climb further.
Lotus Electronics is a Central India retail chain with 30 stores across nine cities and a 26-year history. Pahwa says the so-called RAM crisis has lifted component costs and, in turn, handset prices. Yet he reports no matching drop in buying intent. Buyers who have already picked a model see little reason to wait and risk paying more.
Finance is easing the squeeze. Pahwa says EMI and financing options are playing a key role, helping people spread the cost of an upgrade. Shoppers, he adds, still weigh performance, features and overall experience rather than fixating on the sticker price alone.
The bigger shift, in his view, is premiumisation. Customers are buying fewer products but choosing better ones, whether that means a larger TV, a stronger laptop or a full-size refrigerator. Pahwa describes the mindset as moving from simple replacement to a considered, long-term investment.
Warranty cover also nudges people upmarket. Pahwa says Lotus's extended warranty plans give buyers confidence to spend more on pricey items, since they know they are protected well beyond the standard period.
For the festive rush, he expects the heaviest footfall in large-screen TVs, premium smartphones and big appliances such as refrigerators, washing machines and ACs. These are typically planned purchases, often tied to home upgrades or replacements. He also notes laptops are gaining popularity, along with premium audio gear like soundbars and headphones.
The takeaway for shoppers: waiting for a price drop may not pay off if component costs keep rising, and EMI plans and warranty terms deserve as much attention as the headline price. The interview also touches on why trust draws people to physical stores. Read the original interview for the full excerpts.
FiledTelevisionIndia
