The COVID-19 lockdown has left retailers in the electronics and home appliances segment with loads of unsold inventory in their godowns. A few firms have indicated that their employees may have to take a pay cut for a few months, until the situation becomes stable. Retailers say the servicing segment has also taken a huge hit due to the lockdown.
"As an industry, we have missed [out] on three big sales this year – the year-end sale that happens during the last week of March, the Tamil New Year sale and the summer sale. The stocks we have purchased from manufacturers are lying in godowns," said Vijay Vasanth, CEO of Vasanth and Co. "Most consumer electronics dealers build up stock in January and February for the year-end and summer sales. The inventory includes air-conditioners and air coolers which can be sold only during the summer," he added.
March-May is a crucial period for these retailers, as 30-35% of their total sales happen during these months.
Nitesh Giria, Director of Girias, said, "The government should permit us to operate in accordance with guidelines and social distancing norms. Otherwise, all our consignments will remain unsold for another year." The lockdown has wiped out nearly 40% of his business this year.
Vishal Bysani, Vice-President - Marketing, Viveks, said summer-centric products would remain idle for the next one year. "Our industry should be considered essential because for a housewife, buying a mixer, a grinder or a fan is essential," he said. "Retailers will also stop expanding their stores for the next few quarters. On an average, they open three to five stores every three months," he added.
On salary cuts, retailers are evaluating their options. According to estimates, Tamil Nadu has over one lakh people employed in this segment.
Industry representatives said that if the government allows them to resume operations post-April 20, they would get a breather. Some suggested that like e-commerce players, they could allow consumers to place orders online by visiting their website and get the products delivered to their doorstep. The industry is also seeking a reduction in GST rates to enhance affordability for consumers and profitability for retailers.
According to an analysis of the Indian appliances and consumer electronics market by CARE Ratings, the industry is likely to suffer a considerable loss in sales going forward. It may be noted that even if the spread of the pandemic is curtailed, consumer sentiment is expected to remain unfavourable and demand, muted.
Tidak ada komentar:
Posting Komentar