Consumer electronics manufacturers on Thursday said that owing to hike in raw material costs and shipment delays amid lockdowns in China, they have no option but to increase prices of consumer goods by 5-7 percent soon for the Indian consumers.
The electronics industry worldwide continues to face raw material shortage given the ongoing COVID situation in China.
"In the near future, we do see a grim scenario in India if the current, 4-5 weeks delay in shipments continues," Avneet Singh Marwah, CEO of Super Plastronics Pvt. Ltd (SPPL), told IANS.
"The shortage of raw materials has caused major instability in prices and as a company, we will also have to hike our prices by 5-7 percent," he added.
Smartphones, laptops, TVs, ACs as well as imported watches are set to get costlier. Industry experts said prices of these consumer goods could even go up to 10 percent.
According to Anand Dubey, CEO, Indkal Technologies Pvt Ltd, since the pandemic started, the industry has been experiencing issues in the supply chain.
"The Russia-Ukraine war has only aggravated the problem as these countries are two of the largest producers of key minerals used in the manufacturing of chips," Dubey told IANS.
"In fact, a prolonged period of war could result in further distress and complexities. While we have been taking many tactical measures to keep a check on the price impact of all these issues, it remains a challenge to sustain current prices," Dubey added.
The electronics sector has already been raising prices by 2-3 percent every quarter owing to the COVID-19 pandemic.
With supply chain disruptions, fast-moving consumer goods (FMCG) companies have also been forced to increase the prices of daily-use products.
Lockdowns in China have delayed shipments across industries and consumer electronics has taken the maximum hit.
In June and July, India will see major annual sales being held by e-commerce platforms.
Experts are worried that the ongoing crisis can even spill over to the festive sales season.
"This will definitely hit the overall demand for the sector as India is a price-sensitive market. Until stability is brought about, the end consumer will continue to see a rise in price of most products," said Marwah of SPPL, an exclusive brand licensee of THOMSON in the country.
(With IANS inputs)
