Smartphone Makers Might Offer Benefits To Retailers: Know Why

Samsung, Oppo, Vivo, Realme, and Xiaomi are expected to offer benefits to retailers to increase sales during the festive season. Notably, the festive season is known for contributing two to a third of the annual sales of electronics companies.

Initiatives Taken By Smartphone Players: Check Details

The smartphone players are reportedly offering COVID-19 insurance, international trips, and more. However, retailers said that the companies have increased the prices of almost all devices.

"There is no reduction or pullback in ad spends by handset makers. But they are expected to promote models which are not dealing with the shortage (of chips)," Shashi Sinha, chief executive of media buying group IPG Mediabrands was quoted by ET.

On the other hand, research firm TechArc said that smartphone makers are likely to see a 5 to15 percent decrease in shipments. "One must remember that most buyers don't quite understand supply crunch (issues) and whether the device in the market is new or old. In festive times, the buyer will buy the device available, depending on the budget," the source added.

The report also claims that brands should be very selective while spending and directing the ads. Additionally, the report said that brands should direct videos on selected locations.

Smartphone Sales Might Grow Up By 10.8%: Here's Why

According to the market research firm, Gartner smartphone sales in India are likely to increase by 10.8 percent Y-O-Y in the Q2 of this calendar year. The report said that smartphone sales might increase even the industry is facing supply constraints.

"Reinforced shelter-in-place instructions and factory shut-downs in India and Vietnam due to the second wave of COVID-19, along with the closure of retail businesses and restrictions on online deliveries affected smartphone sales negatively in the second quarter after a strong start at the beginning of 2021," said Anshul Gupta, senior research director at Gartner.

Meanwhile, another research firm IDC pointed out that Chinese smartphone maker Xiaomi is leading the Indian handset market. The company has managed to increase its sales from online shares in the Q2 of 2021 (April to June). The company has already surpassed Samsung.