Consistent Supply Chain, Strategic Tie-ups are Crucial to Tap Consumer Technology Market

In an exclusive interaction,Arnav Mutneja, Director, Quantum Hi-Tech Merchandising sharedhow the organization ensured minimum disruption to its supply chain and its consumer outreach during the pandemic. He also highlightedQuantum’s achievements and how the company aggressively focused on the audio space and launched products according to the needs of the consumers

The pandemic majorly disrupted the supply chain for most businesses. What are the challenges you faced during the pandemic and how did you overcome it?

The Covid-19 pandemic and induced lockdowns showed us unprecedented times by disrupting the supply chain as well as manufacturing. It led to a snowball effect where it took considerable time for everyone to get a hold of the situation. There was an exponential five-fold increase in freight for shipping while the most significant semiconductors were scarcely available. However, we took it up as an opportunity and amped up our R&D. This ensured that we had a constant supply. Simultaneously, we also tied up with superior shipping lines, ensuring that we were able to alleviate the challenge.

Customer is a big factor in the D2C ecosystem, what is the strategy that you follow to stay closer to customers across touch-points?

Being a research-driven company that deals with premium products in the wearable and audio segments, Quantum has always succeeded in winning the hearts of the end-users. Also, we just don’t want to sell our product for the sake of profits; we want to cater to a more aware buyer, who appreciates technology and enjoys using world-class products. After the pandemic, we realized that it is important to build a consistent supply chain and have strategic tie-ups. Considering this minor roadblock as a learning opportunity, we have tweaked the small pitfalls that we faced.

As a D2C brand, how does Quantum leverage technology to overcome supply chain challenges?

Quantum is a research-based company, with the exceptional technical know-how on ways to deliver what is needed. Keeping in mind the changing needs of users in the pre-pandemic world as well as post-pandemic one, we are working on developing newer technology in-house. This will lessen the reliance on the supply chain. Moreover, we have also tied up with superior supply chain organizations to maintain the deliveries under any condition.

What are the factors that differentiate Quantum from other lifestyle brands?

Quantum is a premium consumer and lifestyle tech brand for all sorts of audio products, power banks, wearables, etc. Established over three decades ago, it started off with an aim to provide products on the basis of the need of the consumer, in the desired price range. The R&D mechanism has always been the strong point of the company, and manufacturing tie-ups built over the years have ensured that we deliver what we envision, which is the biggest differentiator between Quantum and other brands. The after-sales service is the other key factor as to why Quantum stands apart from the crowd. Strategic communication with B2B as well as B2C consumers has helped Quantum become a unique player and position itself as a consumer-first brand.

Further, local manufacturing acts as an advantage to us, as we can have full control over quality while ensuring a desirable price point. The best in class after-sale service with prompt addressal of issues is the biggest factor that our clients keep coming back.

Please talk about your revenue expectations for the year 2022.

We overcome challenges from the pandemic and maintained a steady growth rate of 25 percent for the past 4 years. The audio segment, which thrived during the pandemic because of the virtual meetings, seminars, and online education is still growing. We are aiming to close 2022-23 at nearly Rs 130 crore in revenues. In recent times, the focus has been on True Wireless Stereo (TWS) and Bluetooth speaker segments, as they are seeing high demand from consumers. We have also recently introduced office stationery and consumer electronics as well as new products in the accessories segment.

In the first quarter of 2022, we have aggressively focused on the audio space and launched products according to the needs in pandemic times. However, with offices opening up, we are looking into a hybrid world, where there will be scope for technology that will be useful for online as well as offline needs. Old products are being phased out, to make space for enhanced products. Thus this diversification in the audio portfolio will impact the entire industry.

We are working on strengthening our pan-India presence since Quantum has a relatively stronger presence in north India and our immediate goal is to replicate the same in the south and other geographical regions across the country.

Can you throw some light on your marketing strategy for this year?

Quantum has always believed in learning from everything that life throws at us. We had pan India offline distribution, but we also strengthened our D2C sales through our website, B2B sales, and e-commerce sales. Thus, we are one of the few brands that are doing really well in the hybrid distribution model. So, our marketing strategy for 2022 will be focused on B2B as well as B2C, along with world-class products developed forIndian consumers.