CRG Group, established in 1999, is a trusted leader driving innovation and reliability in mobile accessories. During an exclusive interaction with Mobility Magazine, Mr. Chetan Rathod, Chairman, CRG Group, shares his insights on 2026 trends, warranty challenges, replacements, and industry growth.
Tell us about CRG Group and your 2026 plans ahead?
CRG Group has been in the mobile accessories business for the last 25 years. In all these years, one thing has remained constant—the industry keeps evolving, and every phase brings a new challenge. Sometimes the focus shifts towards turnover, sometimes towards profitability, and sometimes towards fixing operational issues.
As we enter 2026, my outlook is simple: the industry will keep growing, but it must also become more practical. We are planning improvements in our overall product approach and policies. The market today demands more features in lower prices, but that expectation is creating a big imbalance.
What major issues do you see in mobile accessories industry changes?
The biggest challenge today is replacement and warranty pressure, especially in budget categories. For example, a neckband priced at ₹200–₹300 includes battery, IC, circuit, speakers, multiple components—yet the customer expects it to perform like a premium product. On top of that, everyone wants one-year warranty.
Now practically speaking, a ₹200 item cannot survive with such warranty conditions. Replacement becomes very high, and then there is no profit left for anyone—not the brand, not the wholesaler, not the retailer. Everyone suffers.
What warranty policy should apply to low-priced products?
If we look practically, products like neckbands and TWS should not have long warranties. At most, there should be only a checking warranty.
These are small electronic products with compact batteries and circuits. TWS has multiple small batteries, and in India, weather conditions vary a lot. In high heat, battery performance drops. If battery backup reduces, customer immediately demands replacement.
Also, these products are fragile—if they fall, internal speakers or wiring can get damaged. So giving long warranties on such products is simply inviting loss and trouble.
How can we convince consumers about practical warranty limits?
Consumers are not wrong. They think if they buy a product, warranty should be included. But the solution is not unlimited warranty—the solution is better product selection.
If a consumer wants a 12-month warranty, then they should purchase a product that has a life cycle of 2 to 3 years, with better battery quality, better IC, and better circuit performance.
You cannot give a 12-month warranty on a product whose life is only 8 months. That’s not warranty, that’s just a business loss.
We must educate the market: budget product equals budget lifespan. Premium expectation should come with premium spending.
Which policy change improved industry operations and reduced issues?
Last year, the market faced a major issue in combo products, where brands were providing a pasting guarantee. That created unnecessary replacement problems.
We worked on changing that policy. Once the pasting guarantee was removed, even though it saved just a small amount—“2 paisa” as we say—but it reduced replacement pressure massively.
The benefits were for everyone:
- Brand saved cost and operational headache
- Wholesalers faced less returns and complaints
- Retailers saved time and money
- Industry overall became smoother
That’s why I strongly believe: industry problems can be solved by correcting policy, not by adding more burden.
What industry initiatives can reduce replacement and warranty issues together?
The biggest initiative should be industry unity on warranty rules. If we work together, we can build discipline in the market.
For TWS and neckbands, there should be only checking guarantee. Retailer should check and handover the product. After that, if the customer damages it—falls, breaks, or battery performance reduces due to heat—then replacement should not be expected.
It should work like LCD rules: once checked and delivered, physical damages are not covered.
If retailers want to extend warranty, they can do it—but then they must charge more. They can sell ₹200 product at ₹400 with replacement coverage. That becomes their business choice. But brands should not carry unlimited replacement.
Is the accessories market moving toward quality or price competition?
The market has matured. Earlier, accessories business was easy. When we started 25 years ago, anyone could do this business with limited funds. At that time, even 8–10 lakh turnover was considered big.
But today, we are talking in crores, and survival requires new strength. The industry now depends on three major pillars:
- Brand power
- Big investment capacity
- Strong management systems
If any of these are missing, it becomes difficult to survive. That is why in the last two years, many brands have shut down. Even now, it’s happening.
Why is investment critical, and what changed post-COVID?
Before COVID and during COVID, there was heavy investment coming from outside—many people were putting money into this industry. But the main issue is: returns have reduced in the last 1–2 years.
When investors don’t see returns, funding stops. And without funding, it becomes hard for mid-level brands to expand. Big brands survive because they already have money, systems, and market share.
But middle-level brands get stuck. Either they need to raise funds or scale down.
How have manufacturing trends changed, and where is Make in India heading?
People say Make in India is growing, but I feel we must talk practically. A lot of it is not manufacturing—it is assembling.
Many companies bring SKD kits and assemble them here. That is not true manufacturing. True manufacturing means components are made here. In chargers, yes, some circuit work is happening locally. But still, key components come from China.
So we can call it semi-manufacturing, not full manufacturing.
I don’t think this will grow rapidly now because for traders, manufacturing creates more headache. Traders want fast supply, large quantity, and ready products.
What is stopping full manufacturing in India?
Manufacturing increases management and operational pressure. The trader will only do manufacturing if there is good benefit.
But China already has machines, setups, and production efficiency. Their labor cost is also controlled. So the price advantage they offer is strong.
If there is no financial benefit in manufacturing, the trader will prefer importing finished goods. That’s the reality.
So we may keep saying “we are doing manufacturing,” but at ground level, it’s very difficult.
What message do you have for entrepreneurs growing in 2026?
My message is simple: always work for profit. Don’t run blindly behind turnover. Improve business gradually, improve systems, and keep learning.
Also, don’t move too fast. I say this because if you run at high speed and you fall, it becomes very difficult to get up again.
So keep your growth steady, improve yourself, take manageable risks, and even if profit is less—make sure the business remains stable and sustainable.
Covered By: Mobility India / CRG
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