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This year the sales figures of smartphones and electronics items are low. Then there is a new excitement for retail mobile phone sellers who are waiting for the sales figures to increase during the festive season.
With around 1,58,000 electronics and mobile phone retailers, top manufacturers have expressed concern that many brands are evaluating the e-commerce medium at their expense. Retailers complain that there is discrimination in offline sales by some brands and e-commerce is helping to increase online sales. Apart from brands, retailers have also approached the concerned ministry and CCI. The biggest question that has arisen after this incident is that other business segments have already been affected due to e-commerce, but now will retail mobile phone sellers also not be left out of it? Retailers fear that e-commerce companies may offer heavy discounts during the festive season, which may derail their fortunes and affect sales. As it is now, the festive season has already seen a sharp tussle between traditional retail stores and e-commerce companies instead of healthy competition. Electronics and mobile phone retailers are organizing to retaliate.
A presentation made by the All India Mobile Retailers Association (AIMRA) to top manufacturers specifically stated that Samsung, Poco, Motorola, Realme, OnePlus and Echo are among the companies that are giving more importance to e-commerce companies than retail stores. AIMRA heads 1,50,000 mobile stores. Which generates revenue of more than Rs 30,000 annually.
There is a fear among retailers that online companies may offer huge discounts during the festive season, leading to huge losses in business. Retailers, including large regional chains, collectively generate over Rs 70,000 crore annually. Sales of smartphones and consumer electronics increase significantly during the festive season. Seasonal sales contribute over 30 per cent to the annual sales figures of companies.
A look at the mobile business
Apart from the top manufacturers of the brands, retailers have also approached the concerned ministry and CCI regarding such discrimination
Point out high unsold stock across brands and retail stores
Combined revenue of over Rs 70,000 crore is generated by retailers annually
Sales of smartphones and consumer electronics increase significantly during the festive season
50 per cent of total sales during the festive season happen through online channels