Demonetization: Micromax experiences 25-30 pc slump in sales

Country’s third largest handset maker Micromax said consumer sales have taken a 25-30 per cent hit following demonetization.
According to a PTI report: Besides suffering sales online, the company said its supply chain was dented and there was a 15-18 per cent decline in sales in the last few weeks.
“Consumer sales have come down 25-30 per cent, especially because online sales have been hit as many orders were in cash-on-delivery mode. In the last 3-4 weeks, the supply chain has also got impacted. While at places it has been impacted by 15-18 per cent, in some cases it’s as high as 60 per cent,” Micromax Chief Marketing Officer Shubhajit Sen was quoted by PTI as saying.
He added that the situation is gradually returning to normal.
“It’s not that the market collapsed, it has become a little difficult,” he was quoted by PTI as saying, 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 Government’s demonetization 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 demonetization.
Research firm IDC has also indicated that the sequential decline is likely to be higher in the fourth quarter, owing to the cash crunch in the country since the second week of November.
“This has already resulted in significant slowdown of demand across PC and mobile devices; not just in offline retail but in online channel as well, where cash-on-delivery (CoD) contributes to a substantial portion of the sales,” IDC had said.
The fourth quarter smartphone shipment is expected to see 17.5 per cent sequential decline, as per IDC estimates.