Mumbai: The brand NU, a recent entrant in the industry from the house of Arzooo, one of India's largest B2B e-commerce marketplace, has joined the bandwagon of the consumer durables segment in India. On 3 April, it launched its first premium product line comprising smart HDR LED TVs, air conditioners and washing machines.
Indiantelevision.com caught up with Arzooo and NU CEO & Co-Founder Khushnud Khan to find out about the brand’s plans to compete in a market which is already hot with several players, the brand’s plans to not take the brand ambassador route, on digital being the key focus of its communication and more.
Positioning itself as an aspirational brand which is backed by an exhaustive distribution network, NU is extending products that are laden with ARM Quad Core Processor and Blue Fin Technology, features and premium design in a more competitive price range, empowering middle-income households to opt for high-end products.
NU has partnered with the best in the industry to bring cutting-edge technology, the latest features, and premium design that is at par with some of the leading global brands. Arzooo plans an omni channel approach to take NU closer to consumers and NU products will be available pan India, covering over 18,000 pin codes.
With a strong commitment towards superior customer experience and after-sales service, NU has created a robust installation and after-sales team with 650 service centers to deliver delightful customer experience in 400+ cities. The products are available on Amazon, Flipkart and Offline stores.
Edited excerpts:
On paving way for NU in the cluttered electronics consumer durables market, and making it in time for the summers
In that sense, yes, it's timed like that (for the summers). But the launch is more strategic. It's something for the next 20-30 years. But it is timed that we also participate in this season. With the IPL happening and a lot of other factors.
Superior design, modern technology, and high performance - we are focusing on bringing these three elements into our products. And all of this is backed by a good after-sales service, to take care of your products for as long as that product lasts, and make sure that the life is elongated for the product through this after-sales service. So we're going to pay a lot of attention to after-sales.
On your TG
I think they're going after the aspirations of people. We look at being an aspirational brand. I feel in our kind of country, which is rising, and growing fast, there is a lot of aspiration, everyone is looking to upgrade their lifestyle. We want to be at the forefront of that change.
The way we have designed the product line-up covers the need of everyone. There is a guy living alone single in a PG, he needs a machine to wash his clothes, at an affordable price, he can buy a Rs 10,000 semi-automatic washing machine. Or it's a family, large family in South Delhi, they want a fully automatic washing machine, there is a solution for them. And the same goes for TV - a small screen 32 inches to serve the purpose of the same boy. And there is a larger screen - 65 and 75 inches - will also be available for larger homes.
And all the product thesis is on this that in India you can't ignore the aspirational middle class. Unless I build a product for them, I will be able to neither win the market nor am I doing enough, because that's where the large population is. So our product philosophy is based on that that making this affordable, and accessible to all of them, in every segment.
On bridging the gap between markets
The one thing that's happening really fast in our country is that the gap between the so-called metros and so-called Tier IV cities is bridging fast. And technology and the internet have a large role to play in that. So, if you see people buying a 65-inch Sony television in Delhi, there are a lot of these buying happening in different parts of the country like Nagpur or Chattisgarh. So I think every market is highly relevant for us. So we are not picking markets saying that I would focus only on the top 10 markets. I feel that's not the right strategy for a brand. So that is why we are designing our channel in a way that consumers are going everywhere. And we are going to ensure that we are accessible to them online, offline, and in-store. So that's how we look at it. It's an omnichannel strategy that we are looking at.
On retail expansion
It’s a pyramid wherein 75 per cent is offline - actually more because about 70 per cent is the single standalone stores.
Then you have these modern retailers like Reliance and Croma, which command about 18-20 per cent of the market and the rest is e-commerce.
We are not looking at exclusive stores yet. I think the exclusive stores’ role comes when you have some sort of customer base you are mainly good in the market. So maybe a year from now that's an area to explore. And we'll explore it, but not right now – right now we are going to focus on general trade and e-commerce.
On choosing to say no to the brand ambassador route
I don’t believe in getting brand ambassadors. This is one thing I keep telling my marketing person - when you're bringing a product to the market that product has to stand on its own, first speak for itself and then later you can bring a face at a later stage. But the moment you bring a brand ambassador for the launch, all you're doing is you're giving someone else an opportunity to come and just overpower your brand - and that guy, that face, that girl is everywhere on the screen and all that. So no, I don't believe in brand ambassadors.
I’m not looking at appointing a brand ambassador anytime soon - the product has to be the brand ambassador.
On influencer marketing
It will be a part of our marketing strategy, yes. Whatever fulfils for us to grow our outreach to consumers, we will do.
On IPL, advertising and marketing
Everything that we do is going to be focused on our product. We'll be doing ATL and BTL campaigns because it build visibility for the brand. But we'll be building all of these on our products.
We are not looking at associating with the IPL right now. It’s as much as not considering a brand ambassador right now. The first thing that you look to address is the accessibility of the product to everyone which is distribution.
So the first focus is on the distribution. And then we will do the right things to do. But we are not getting carried away by the glamour of any immediate event.
On digital being at the core of NU’s media mix
Digital will be one route, where we'll be putting a lot of focus. Besides that, the other mediums that fulfil the criteria for marketing strategy will opt for, but our current priority will be digital.
On the vision and way forward for the brand NU
We are looking at attaining 20 per cent market share in the industry within three years.
