What has been the impact of lockdown on the business?
Due to the extended lockdown, there are many challenges faced by businesses with huge impact from sales, manufacturing and cost.
There was a complete suspension on sales and manufacturing since the lockdown. As per the Government directives, our Greater Noida facility in Uttar Pradesh was suspended since 21st March, 2020 along with sales being a halt. We also postponed our Narzo series launch event and a few AIoT products that were scheduled for April till today.
Secondly on cost factors. The outbreak of COVID-19 has also influenced countries like China, Korea, U.S., Japan, where most of the upstream component suppliers of smartphones are located. However, the demand on the sales side also got reduced due to the lockdown as most brands couldn’t operate their business and had to delay product plans. In the future, the disturbance of manufacturing along with the new surge of demand post lock-down might have further impacts on the price of components, which eventually influences smartphone selling price.
Amid the lockdown, manpower disruption was also seen. The migrant workers, truckers and helpers have gone back to their hometown. It will take 2 to 4 weeks to revamp the entire production cycle even after we got the permit to reopen our factory. We are aiming to open 25% of normal production, so there might be some shortage of stocks in the upcoming one month due to the surge of demand post lock-down and new product launches.
Another uncertainty comes on the demand side. Due to the nation’s economy slowdown and people’s income loss, we could expect around overall 10% sales drop in 2020’s overall smartphone market according to Counterpoint. However, we are still confident that realme could sustain our sales target and recover faster than other due to our strong presence on e-commerce, faster offline expansion and product advantages across mid-range and
“The migrant workers, truckers and helpers have gone back to their hometown. It will take 2 to 4 weeks to revamp the entire production cycle even after we got the permit to reopen our factory. We are aiming to open 25% of normal production, so there might be some shortage of stocks in the upcoming one month due to the surge of demand post lockdown and new product launches”budget segment.
You have just launched another series, Narzo. What makes it special from the rest?
Narzo is a performance oriented series that we build for all young players in India.
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