Last updated on November 27th, 2016 at 11:06 am
Open Talk @DSIM
An Interview Co-Founder of Infinityassurance.com, Rajesh Kumar Goel
Infinity Assurance Solutions is a Delhi-based company having specialization in service administration including manufacturer warranty and creating & managing warranty products. Infinity Assurance Solutions provides solutions for warranty management in the country for manufacturers, retailers as well as customers for a range of brands in the consumer electronics, brown & white goods, mobile phones, laptops, tablets, printers, copiers, and projectors segments
Ans. I am Electronics Engineer and hard core. After Market Services professional experience of over 25 years in Technology solutions including IT, Office Automation and Broadcasting Solutions, I have worked in India, Singapore and Middle East developing and managing after-market services businesses with companies like Network Limited, Redington, Horizon Broadcast Electronics, RT Outsourcing, Emitac, etc.
After making up my mind, I created a large, scalable and comprehensive business plan; I got into its validation mode through Industry veterans. It was appreciated and considered a very practical solution… and then we got into the game…
Ans.Our business model revolves around our core strength i.e. Service Management. We do two things: provide Service Administration and create innovative warranty products. Under the umbrella, in B2B space, we provide comprehensive warranty, extended warranty and post warranty solutions so that our clients can focus on their core businesses. Our wide range of service plans are designed to increase their revenues, maximize profits and enhance relationship with their customers by providing them with added value at very reasonable costs.We have customized solutions for OEMs, Large Format Retailers (modern retail), ecommerce market players as well as traditional / general retailers. We approach on creating service plans which are easy to understand by customer and easy to sell by our partners.
Ans.Major challenge is to educate the customers, because Electronics and Appliances might fail – undoubtedly! Most modern electronics and appliance items; be it Smartphones, Tablets, TVs, Laptops, Cameras, Microwave ovens, Washing machines and Refrigerators are an expensive budget item for most families and the issue is these are necessities for any middle class family.Looking from manufacturer’s point, providing any service beyond its warranty obligation will be pain and they refrain from offering longer warranties unless they know that the limited warranty (like 5 years warranty only on Compressor of an AC or a refrigerator or on motor of a washing machine) will not add to their cost. This LIMITED nature of the manufacturer’s warranty and even longer warranty puts the consumer to a huge financial risk. Many a time, whole equipment needs to be replaced by a new one adding the old one to e-Waste. To share some perspective:
1 in every 3 new Smartphone gets damaged in the very first year of its purchase while their normal failure rates vary from 10% to 15% within just first year.
Damaged screen repair costs 35% to 60% of the price of a new mobile phone while this is even higher for a tablet
Laptops are likely to fail 30% to 50% in first 3 years of their lifetime
In phones & tablets; Mainboard costing 45% – 60% of the price of a new device is likely to get damaged beyond repair in 90% of the water / tea / liquid spillage cases
Cost of replacing LED / LCD panel of a TV can be 60% to 80% of the price of a new TV
So, the problem is actually serious. This is where our longer warranties and extra coverage to manufacturer warranty period come very handy at very low cost to the consumers.
So, it`s important to educate the customers that by investing a minimum money they can actually get rid of all unexpected costs of unforeseen repair costs.
Q9. Finally, at the end of our interesting conversation, would you like to give any advice to emerging entrepreneurs willing to start an e- commerce business?
Ans. For any new startup, being Innovative is the Key. Because todays’ customer is much aware with heavy information download and it’s easy for them to switch from one provider to another. Not to forget that after sales services is also a very critical issue to handle. So, customer experience is an area where entrepreneurs need to focus on.
Specific to e-Commerce, the industry is growing at exponential growth and competition is really fierce creating many entry barriers for newcomers. My personal advice will be to identify problem areas of the industry and then create a solution around it. I can guarantee; there will be many takers.
“It was fantastic talking to you. Thank you so much for your time and providing us valuable information.” Team DSIM wishes you for your bright future.
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