Interview: How Smart Tech, AI, And Brand Partnerships Are Keeping EROS Group Ahead In UAE's Retail Business

With a legacy spanning over 55 years in the home appliance and retail sector, EROS Group stands as a prominent player in the UAE market.

In an exclusive interview with OneArabia.me, Rajat Asthana, COO of EROS Group, shed light on the company's rich history, recent developments, and future aspirations, highlighting the launch of their in-house brand, Krome, and their strategic focus on smart technology and customer loyalty.

The Coming Of Krome

EROS Group, known for its pioneering efforts in introducing home appliances to the UAE market, recently expanded its portfolio with the launch of Krome, its own brand of home appliances. Mr Asthana highlighted that the brand was developed to leverage EROS' extensive experience, knowledge and accessibility in the region.

"Krome focuses on major appliances, including refrigerators, washing machines, air conditioners, and cookers. By combining high-quality products with competitive pricing, Krome aims to deliver exceptional value to its customers," Mr Asthana said, while emphasizing that the positive response to Krome has been encouraging with it now being available on major online platforms like Amazon and Noon, as well as through EROS Group's own retail stores and independent dealers.

He said that Krome is looking to expand regionally within the GCC countries. The brand has already entered Bahrain through Eros BH and now plans to extend its reach to Oman, Kuwait, and Saudi Arabia next. Additionally, Krome has started selling internationally in markets like Bangladesh, Sri Lanka, and some African countries.

"EROS Group's rich legacy includes partnerships with renowned brands whose experience has been instrumental in developing Krome as an in-house brand that meets market demands effectively."

As a result, Krome is poised for further growth both regionally and internationally.

Connecting Smart Homes

Regarding technology, particularly AI, EROS is currently more focused on smart appliances rather than AI-driven ones. Although AI is making its way into mobile phones and laptops, it may take more time for AI to fully integrate into home appliances. However, Mr Asthana said that EROS is very aware of the growing trend towards smart appliances and has moved early to introduce such products into their portfolio.

"We have partnered with leading brands in smart technology. Dreame, a top brand in L10s Pro Ultra the Robot Vacuum, has sold over 2.4 million units in a year. These robotic vacuum cleaners can be controlled via an app, navigate through the home, and even come with built-in cameras for real-time monitoring. EROS has also introduced smart air purifiers under the LEVOIT brand, smart air fryers from Cosori, as well as smart washing machines from top ranking brands to enhance sustainable living in the UAE.

However, Mr Asthana anticipates that AI will eventually be incorporated into appliances, enabling them to suggest operations based on user behavior. "For now, though, the focus remains on smart technology, which aligns with UAE's smart city goals. The adoption of smart appliances has been rapid, especially among the younger generation in the UAE and Dubai."

With hi-tech also comes the price factor. To this, Mr Asthana reiterated that robotic vacuum cleaners, once unpopular, have now gained significant traction. The premium robotic vacuum cleaner recently launched by EROS, priced at Dh4,599, sold out during Amazon Prime Day in July 2024. This reflects the growing demand for smart products, which are not only energy-efficient but also highly convenient.

Televisions have also fully transitioned to smart models, with in-built apps and streaming capabilities. Sound systems are now wirelessly connected and integrated into smart homes. EROS sees a clear movement towards interconnected smart appliances, driven by customer demand, and they are committed to fulfilling this trend.

Smart Homes To Smart Phones

The conversation shifted from smart homes and appliances to smartphones — a device that everyone eagerly anticipates, especially with new deals on the horizon in the UAE. When discussing smartphones, Asthana highlighted that EROS is collaborating with major brands like Samsung, for which they are one of the major partners in the UAE.

Mr Asthana emphasized that the biggest trend in smartphones right now is the integration of AI. Samsung, he says, has taken the lead by launching AI-driven smartphones with the Fold and Flip series. Other brands such as Apple, are also catching up by partnering with OpenAI and integrating ChatGPT. Mr Asthana noted that while it's still early days for AI in smartphones, it is likely that AI will drive future innovations in the industry. Consumers are increasingly demanding more from the AI platforms integrated into their smartphones, as hardware improvements, particularly in cameras, have plateaued.

He also mentioned the UK-based Nothing phone that is positioning itself as a challenger brand. He is of the view that Nothing aims to "make technology cool again" with its sleek design, unique operating system, and appeal to a different consumer segment. This approach contrasts with the safer strategies of larger brands.

Mr Asthana also observed a shift in consumer demand and supply with regard to smartphones. While Samsung and iPhone used to dominate the market, consumers are now more open to exploring other brands that meet their specific needs, such as advanced cameras. He pointed out that brands like Huawei and others are focusing heavily on offering the best camera quality, which remains a top priority for many consumers. This includes not just the rear camera but also the front camera, given the popularity of selfies.

Bouncing Loyalty To BOUNZ

In 2023, UAE-based lifestyle loyalty program BOUNZ had announced a strategic partnership with EROS Group to expand EROS clientele with the implementation of the BOUNZ loyalty points program. BOUNZ, a customer loyalty program is gaining popularity for its wide reach and collaborations with major retail chains, notably Choithrams.

Mr Asthana explained that through BOUNZ, customers can earn and redeem loyalty points while shopping at EROS and other participating retailers. This interconnected network of retailers within the BOUNZ universe enhances the customer experience by providing more opportunities to earn and redeem points.

The partnership has already shown positive results, with many customers redeeming BOUNZ points at EROS stores. Additionally, EROS leverages the BOUNZ app to promote its stores, offers, and promotions, increasing awareness and driving sales.

Strategic Market Shift

EROS' strategic growth into new markets and the launch of new products has well-positined the brand regionally. EROS has significantly expanded into Bahrain through a strong local partnership with the Bin Hindi Group of Bahrain. This collaboration resulted in the formation of a joint venture company named Eros BH. This venture has enabled EROS to distribute its existing brands, such as Hitachi, TCL, and its own brand Krome, in Bahrain.

There is also a comprehensive setup in Bahrain, which includes a full-fledged office, service center, warehouse, delivery vehicles, and dedicated sales and service teams. This expansion represents a substantial investment made in the last year and continuing into this year.

Following Bahrain, EROS is considering further expansion into other GCC countries, potentially including Qatar and Oman. Internationally, EROS maintains a robust business division that supplies products to various markets in the Middle East, Africa, and South Asia, in collaboration with brand partners.

BTS Is Coming Up

BTS or Back To School is one of the most-awaited events of the year and EROS is well-prepared to launch promotions and offers for students in the UAE to be rolled out soon. "The offers will primarily focus on products like laptops and tablets, which are key categories for the back-to-school season. There will be trade-in offers allowing customers to bring in their old laptops and receive a discount on new ones. Additionally, there will be discounts on printers and other accessories used with laptops," Mr Asthana mentioned. But there's more to this.

Various brands will also offer special discounts during this period. While the focus will be on IT products like laptops and tablets, other products such as appliances will also be included, considering that people often move houses and purchase new appliances around this time of the year.

Awaited Launches This Year

In the UAE, phone launches are significant events, drawing attention from tech enthusiasts and consumers alike.

The UAE market is known for its high demand for cutting-edge technology and Mr Asthana shared that EROS is anticipating major product launches this year. "The Samsung S24, which was highly successful due to its AI integration, was a significant release. Following this, the launches of the Note and the Flip are also highly anticipated. Another major event this year will be the upcoming Apple launch, expected to draw much attention."

Additionally, there are major releases in the television market, he added, particularly with large screens such as the 98-inch and 115-inch models from brands like TCL and Samsung. The trend in the television market is shifting towards larger sizes, with significant interest in these new models.

Client Relationship and Physical Store Presence

For 55 years, EROS has had great success in the UAE, thanks to its great partnerships with well-known global brands. EROS today manages Samsung's largest brand shop in the region, located in Dubai Mall and well as multiple HUAWEI brand shops.

Mr Asthana shed light on the trend of direct-to-consumer (D2C) marketing, which has led to a greater emphasis on creating brand experiences through these brand shops. "Major brands seek to engage directly with consumers, offering a tailored brand experience that can only be achieved through physical retail spaces. EROS, with its expertise in managing and operating these shops, is well-positioned to capitalize on this trend."

But do brick and mortar stores still have a relevancy today with a bigger online presence? Despite the challenges posed by the shift towards online shopping, EROS recognizes that a seamless blend of online and offline shopping experiences is vital. Consumers often conduct research online and then visit stores to confirm their choices. This interplay between online and offline channels is essential for offering a complete shopping experience.

Mr Asthana stated: "While online shopping has seen significant growth and will continue to do so, physical stores remain essential for providing the tangible, immersive experience that consumers seek, especially for electronics and appliances. Shoppers want to see, touch, and test products before making a purchase, often visiting physical stores to complement their online research."

EROS has also adapted to the online market, maintaining a dedicated website and selling on platforms like Amazon. While consumers might prefer the convenience of Amazon, EROS ensures that their brand presence is strong across multiple channels to capture a broad customer base. This dual presence allows them to reach consumers wherever they choose to shop, reinforcing their commitment to providing comprehensive and accessible retail experiences.

In today's market, while Amazon is a preferred platform for online shopping, many consumers still choose to buy from EROS for specific reasons. One major factor is after-sales service, Mr Asthana reiterates. When consumers purchase electronics from EROS, they are assured of excellent after-sales support. This focus on service and customer support is a significant reason why people opt to purchase from EROS despite the convenience of Amazon.

Mr Asthana said that EROS does not compete directly with Amazon and maintains a strategic partnership with the e-commerce giant. "EROS supplies a wide range of products to Amazon and collaborates closely to ensure high service standards. This partnership is particularly strong in categories like appliances, where EROS is a leading supplier."

As evident in the brand popularity, EROS Group's commitment to leveraging decades of experience, strategic partnerships, and a focus on delivering high-quality products and services positions them as a leader in the consumer electronics market. Their continued regional and international expansion, coupled with a dedication to customer service, underpins their ongoing success and growth in the evolving landscape of consumer electronics.