Impact overview
Consumer electronics industry has taken a toll due to outbreak of COVID-19 pandemic, across the globe. Globally, hypermarkets, supermarkets, and showrooms of leading brands have been shut down, affecting sales of various consumer electronics products. Having said that, some green shoots are visible. Due to implication of the measures amid lockdown, enterprises across the globe have adopted remote working as a tool to continue with their business processes. Work from home (WFH) for employees has led to increase in demand for computers, laptops, and peripherals. Webinars and online meetings have positively impacted the sales of headphones and Bluetooth earphones. Due to increase in demand for remote connectivity, sales of networking devices and connectivity hardware solutions has increased multifold.
Consumer electronics industry’s supply chain is majorly centered in China. As leading OEMs of consumer electronic devices have their manufacturing facility in China, along with the manufacturing facility OEMs of components, the shutdown of manufacturing facilities in China has caused serious implication on the entire ecosystem of the consumer electronic industry.
Though, the impact on supply-side of the market is currently minimum as manufacturing in China has resumed, the market of the consumer electronic industry has been highly impacted The sales for products such as televisions, ACs, refrigerators, and other white goods has reduced considerably, with the changed in discretionary spending of consumers on non-essential items.
Comparative analysis
Comparative Analysis - 1
Pre-Covid-19 Vs Post Covid-19 - Market Estimates, 2020 – 2021
Comparative Analysis
Top Gainers Vs Top Losers
Marginal Growth
- Computers and peripherals
- Laptops
High Gainers
- Networking devices
- Smart headphones
Marginal Loss
- Mobile phones
High Losers
- Televisions
- Refrigerators
- Other white goods
Coherent experts’ corner
Senior Consultant Level 1
ICT Research
Senior Consultant Level 1
ICT Research
Short-term
- OEMs need to impose social distancing through measures such as limited number of workers, staggered shift timings at manufacturing facilities
- Fulfil pending customer commitments
- Emphasize on online sales, as a distribution channel to push product to the end consumer
Long-term:
- OEMs should invest in developing local supply chains.
- Countries with large number of potential customers would witness home grown manufactures of OEMs and ODMs, mainly driven by initiatives of the respective governments.
- Consumer electronics companies should enhance security infrastructure as remote working brings new threats and requires security arrangements.
- Consumer electronics companies should outsource non-core business processes .
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