Consumer electronics makers said on Thursday that due to rising raw material costs and shipping delays amid shutdowns in China, they had no choice but to increase prices soon. consumer goods prices by 5-7% for Indian consumers.
The electronics industry around the world continues to face a shortage of raw materials, given the current COVID situation in China.
“In the near future, we see a grim scenario in India if the current 4-5 week delay in shipments continues,” Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), told IANS.
“The shortage of raw materials has caused great price instability and as a company we will also have to increase our prices by 5% to 7%,” he added.
Smartphones, laptops, televisions, air conditioners as well as imported watches are expected to become more expensive. Industry experts have said that the prices of these consumer goods could even rise by as much as 10%.
According to Anand Dubey, CEO of Indkal Technologies Pvt Ltd, since the onset of the pandemic, the industry has been experiencing problems in the supply chain.
“The Russian-Ukrainian war has only compounded the problem because those countries are two of the largest producers of key minerals used in chip manufacturing,” Dubey told IANS.
“In fact, a prolonged period of war could lead to more distress and complexity. Although we have taken many tactical measures to control the impact on prices of all these problems, it remains a challenge to maintain current prices” , said Mr. Dubey. added.
The electronics sector has already raised prices by 2-3% every quarter due to the COVID-19 pandemic.
With supply chain disruptions, fast moving consumer goods (FMCG) companies have also been forced to raise prices for daily use products.
Blockages in China have delayed shipments across all sectors, and consumer electronics has been hit the hardest.
In June and July, India will see significant annual sales held by e-commerce platforms.
Experts fear that the current crisis will even spill over into the holiday season.
“This will certainly affect the overall demand for the sector as India is a price sensitive market. Until stability is restored, the end consumer will continue to see an increase in the price of most products,” said Mr. Marwah from SPPL, an exclusive licensee of the THOMSON brand in the country.
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