Micromax revealed that demonetization has resulted in sales drop by 25-30 percent
On a recent statement, Micromax revealed that demonetization has resulted in sales drop by 25-30 percent. The country’s third largest handset manufacturer said that consumer sales had witnessed a drop of 25-30 percent in the past few weeks due to the regulation of demonetization and seasonal slowdown after Diwali.
The online sales experienced a drop due to cash crunch as the outcome of demonetization, the supply chain on the other hand also suffered a 15-18 percent decline in the sales in the past few weeks.
Shubajit Sen, Chief Marketing Officer, Micromax said that the company’s internal data hints that the upshot happening is playing out at two levels. Thus the consumer sales have dropped. They have seen a major drop of 25-30 percent to be specific. Mainly the company got hit far more on the online front because of the cash on delivery. But overall Micromax thinks that this decline is a bit lower than the industry.
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He further added that the impact on the supply chain has been near 15-18 percent, in some cases it as high as 60 percent. Plus the ‘post-Diwali effect’ has also affected the numbers. Actually, the post-Diwali effect was seen in the entire industry.
As per the industry experts, sales generally drops after Diwali by 10-15 percent provided that the festive sales witness a pitch on discounts and offers.
Sen added that gradually the situation is coming back to normal. He explained that it was not like the market entirely collapsed, it has just become a little tricky. Plus the company is also offering higher credits to distributors in order to help them with the current situation. The situation is expected to be better by the time new year arrives.
Mobile phone industry body Indian Cellular Association has stated that the sales have declined by 50 percent due to the crash crunch resulted by demonetization.
