Consumer electronics firms warned on Thursday that they have no choice but to raise the prices of consumer goods by 5-7 percent for Indian consumers because of rising raw material costs and shipment delays due to Chinese lockdowns. Given the continued Covid issue in China, the electronics sector faces a global raw material scarcity.
Consumer Brands and Hike Prices
Avneet Singh Marwah, CEO of Super Plastronics Pvt. Ltd (SPPL), told: “Shortly, we do see a grim scenario in India if the current, 4-5 weeks delay in shipments continues. The shortage of raw materials has caused major instability in prices and as a company, we will also have to hike our prices by 5-7 percent,” he added.
Smartphones, computers, TVs, air conditioners, and imported watches are all expected to become more expensive. Consumer goods prices could rise by as much as 10%, according to industry experts. According to Anand Dubey, CEO of Indkal Technologies Pvt Ltd, the industry has been experiencing supply chain challenges since the pandemic began.
Dubey told: “The Russia-Ukraine war has only aggravated the problem as these countries are two of the largest producers of key minerals used in the manufacturing of chips.”
“A prolonged period of war could result in further distress and complexities. While we have been taking many tactical measures to keep a check on the price impact of all these issues, it remains a challenge to sustain current prices.”
Force to Increase the Prices
Due to the obvious Covid-19 epidemic, the electronics industry has already raised prices by 2% to 3% per quarter. Fast-moving consumer goods (FMCG) companies have been forced to raise the prices of everyday products due to supply chain disruptions.
Lockdowns in China have caused delays in shipments across industries, with consumer electronics taking the brunt of the damage. E-commerce platforms in India will hold large annual discounts in June and July. Experts are concerned that the protracted turmoil will affect the holiday shopping season.
An exclusive brand licensee of THOMSON in the country, Marwah of SPPL said: “This will hit the overall demand for the sector as India is a price-sensitive market. Until stability is brought about, the end consumer will continue to see a rise in the price of most products.”
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