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Heat wave causes drop in smartphone sales, Telecom News.

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In Short:

The heatwave in North India is affecting mobile phone retailers with a 3-4% decline in sales in May. Footfalls have dropped by nearly 50% due to extreme heat, leading to challenges in staff attendance. Large retail stores with air-conditioning are preferred by consumers, while online platforms are gaining popularity. Retailers are adjusting by offering home deliveries and installing air-conditioners in stores. Customers are now transacting more online to avoid the heat.

Mobile Phone Retailers in North India Struggle with Heatwave Impact

Mobile phone retailers in North India are facing a downturn in business as the recent heatwave has led to a significant decline in footfalls. The All India Mobile Retailers Association has reported a 50% drop in business in regions like Delhi, Rajasthan, Haryana, and UP.

Impact on Sales and Shopping Behavior

Market trackers estimate a 3-4% month-on-month decline in sales for May, with online channels expected to gain market share over brick-and-mortar stores. Consumers are now preferring air-conditioned large-format retail stores and ecommerce platforms due to the extreme heat.

Shopping hours have shifted to cooler times of the day, with most purchases happening between 9 am to 11 am and 6.30 pm to 10.30 pm. Retail stores without air-conditioning are seeing a larger decline in footfalls, while sales in large retail outlets are on the rise.

Forecast and Online Trends

The India Meteorological Department has forecast severe heatwave conditions in North India, with temperatures reaching up to 50 degrees in some areas. Despite falling footfalls, there has been no decline in shipment levels entering channels.

Customers are now transacting more on online platforms, with the share of online sales increasing from 36% in Q1 2024 to 40-42% in Q2 2024.

Retailers’ Response and Adaptation

Retailers are adapting to the changing conditions by installing air-conditioners in their stores and providing refreshments to customers. Some customers are also deferring their purchases for later, resulting in more online activity during the hottest hours of the day.

Overall, despite the challenges posed by the heatwave, retailers are finding ways to serve their customers and navigate through the tough business environment.

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