Pent-up demand flows in as Covid wave recedes | Economic Times

Consumer electronics and smartphones have got a boost in the past 10 days or so, as states began easing pandemic-led curbs — similar to the bump from pent-up demand last year when the lockdown was lifted. Brands, retailers and online marketplaces said there has been a 10-15% spurt in sales from the year earlier as lockdowns started easing in the west, north and east, apart from online purchase of non-essentials resuming.Companies said demand is particularly robust for laptops, smartphones, washing machines, microwave ovens, kitchen appliances and small items of furniture as consumers continued to work from home during the second Covid wave. In the north, rising summer temperatures have seen demand rise for refrigerators and air-conditioners.Apparel brands said stores are yet to return to normal since malls have just begun opening, but ecommerce business has revived. Puma India managing director Abhishek Ganguly said online sales are back on track while stores are just about opening up, with reduced trading hours.‘Better Than Last Year’Electronics and smartphone retailers and brands have recovered smartly, executives said. Markets resuming operations are reporting higher consumption and footfalls than last year, said Kamal Nandi, business head at Godrej Appliances and president of the Consumer Electronics and Appliances Manufacturers Association. “Around 60% of the markets are already open and we expect the rest will open up in the next 10 days,” he said. Nilesh Gupta, director at electronics retailer Vijay Sales, said markets such as Gujarat — which opened up in May — Mumbai and Pune, where sales started last week, reported 10-15% growth from last year. “Initial pent-up demand after the second wave is actually better than last year. This is also due to online channels opening up at the same time,” he said.Some Curbs RemainDelhi opened up this week with some curbs still in pace, while Haryana, Rajasthan, Telangana, Andhra Pradesh and West Bengal shops opened regularly for a longer duration this month. However, some like Haryana, Karnataka, Tamil Nadu, West Bengal and Maharashtra had allowed unrestricted ecommerce earlier. Some states, however, are still continuing with night curfews or weekend lockdowns. Sales in the south are still muted. Karnataka and Tamil Nadu are yet to allow retail stores to open. However, ecommerce has surged in those markets as well. Online accounts for 10% of business now, up from 2%, said Chandu Reddy, director of Sangeetha Mobiles, the south’s largest cellphone retailer.Tata-owned electronics chain Croma is reporting pent-up demand for summer appliances and laptops, which continue to grow at a high rate. Demand is similar to last year after reopening, said Croma chief marketing officer Ritesh Ghosal.Industry executives said brands are lining up smartphone and electronics launches this month after a gap of almost two months to further drive demand.Realme expects June sales to rise 50% from the year earlier, with pent-up demand accounting for 30%, said Madhav Sheth, chief executive for India and Europe at the phone maker.