Sales down 25-30% after demonetisation, says Micromax
Smartphone maker Micromax has said its consumer sales have seen a 25-30% hit in past weeks due to twin impact of demonetisation and seasonal slowdown post Diwali. "Actually, we guys have got hit far more on the online front because of cash on delivery," Micromax said.  The company expects the situation to get better over the next year, Micromax added.
New Delhi, Dec 7 (PTI) Consumer sales have seen a 25-30 per cent hit in past few weeks due to twin impact of demonetisation and seasonal slowdown post Diwali, countrys third largest handset maker Micromax said today. While online sales suffered due to cash crunch in the aftermath of demonetisation, the companys supply chain saw a 15-18 per cent decline in sales in the last few weeks. However, Micromax said the impact on its sales was lower than that on the industry. "Our internal data suggests that the effect happening is playing out at two different levels. So sure, consumer sales are down. They are down 25-30 per cent. Actually, we guys have got hit far more on the online front because of cash on delivery. But overall, we are trending at 25-30 per cent decline in these 3-4 weeks and we think its a bit lower than industry," Micromax Chief Marketing Officer Shubhajit Sen said. He added that the impact on supply chain (distributors) has been around 15-18 per cent, in some cases it is as high as 60 per cent. Sen said "post Diwali effect" also had a bearing on the numbers. "...part of it was post Diwali effect and was seen on the entire industry. While we cannot isolate the two, demonetisation had its share as well," a company spokesperson clarified later. According to industry experts, sales usually fall after Diwali by 10-15 per cent given that festive sales see a surge on offers and discounts. Sen said the situation is gradually returning to normal. "Its not that the market collapsed, it has become a little difficult," he said, adding that the company is offering higher credits to distributors to help tide over the situation. Sen said the company expects the situation to get better as the new year sets in. According to various reports, the governments demonetisation drive and the cash crunch that followed has hit sales of mobile handsets, including those sold online. Mobile phone industry body Indian Cellular Association has said sales have come down by 50 per cent due to cash crunch post demonetisation. 