With the market picking up slowly, electronics trading in domestic markets has also gotten a bit upbeat, and traders are now hopeful of regaining their sales volumes
By EB Bureau
Tuesday, October 22, 2013: The recent volatility in the Indian economy seems to have subsided a bit—the first signs of stability being the rupee having bounced back by 10 per cent. With the market picking up slowly, electronics trading in domestic markets has also gotten a bit upbeat, and traders are now hopeful of regaining their sales volumes. While consumer electronics players are banking heavily on the festive season, electronics hardware traders are equally hopeful to beat inflation in the coming months. “After the past crucial six months, trading in electronics hardware is slowly picking up. In the last quarter, we are anticipating to release all pending orders,” shares Manish Kwatra, managing director, Metro Electronic Product.
Direct and personalised marketing and selling
Delhi’s traders at Lala Lajpat Rai market and Bhagirath Palace, those at the Lamington Road market in Mumbai and at the Ritchie Street market in Chennai are adopting aggressive marketing strategies to boost their sales after a lean period. “We are opting for direct and personalised marketing rather than going through any other medium. We are not only offering the best value for the customers’ money, but also promising immediate delivery,” says Manish Kwatra. Rather than reaching out through mails, advertisements or seeking other promotional avenues, which will take time to see the results, traders are pushing hard through one-to-one selling. “By maintaining close contacts with the customers, we can ensure we regain our lost customers and business by the end of this financial year,” explains Manish Kwatra.
Liquidating stocks
Companies that had held stocks over the past six months are in a good position, as they can now liquidate that stock and earn a profit. Traders who could foresee the market conditions and had analysed the demand in the months to come, had maintained stocks, and therefore, have an edge over other players today, as they can quickly meet the requirements of customers with shorter lead times.
No credit is being offered
Considering the current scenario, traders are not offering their customers any credit at all, as they are not in a position to do so. “In the past five months our sales figures have drastically dropped by 30-40 per cent, so there is no question of offering credit to customers. In fact, we are apprehensive of entertaining clients on a credit basis,” laments G S Sharma, proprietor, Shri Ram Marketing.
“We are already selling at rock bottom margins, so there is no scope for us to further shrink our margins or offer credit to our customers,” adds Deepak Nichani, CEO, Nichani Electronics.
Banking on rare procurement
Nichani Electronics is now focusing on selling components that are difficult to procure or for which there is a shortage in the market. “We are confident of procuring such components easily and, hence, have an upper hand in the market,” says Deepak Nichani. “We are encashing on our expertise of supplying components on a short notice or within a shorter lead time,” he adds.
