Impact of Coronavirus (COVID-19) Pandemic on Consumer Electronics Industry

Consumer electronics industry has taken a toll due to outbreak of COVID-19 pandemic, across the globe. Globally, hypermarkets, supermarkets, and showrooms of leading brands have been shut down, affecting sales of various consumer electronics products. Having said that, some green shoots are visible. Due to implication of the measures amid lockdown, enterprises across the globe have adopted remote working as a tool to continue with their business processes. Work from home (WFH) for employees has led to increase in demand for computers, laptops, and peripherals. Webinars and online meetings have positively impacted the sales of headphones and Bluetooth earphones. Due to increase in demand for remote connectivity, sales of networking devices and connectivity hardware solutions has increased multifold.

Consumer electronics industry’s supply chain is majorly centered in China. As leading OEMs of consumer electronic devices have their manufacturing facility in China, along with the manufacturing facility OEMs of components, the shutdown of manufacturing facilities in China has caused serious implication on the entire ecosystem of the consumer electronic industry.

Though, the impact on supply-side of the market is currently minimum as manufacturing in China has resumed, the market of the consumer electronic industry has been highly impacted The sales for products such as televisions, ACs, refrigerators, and other white goods has reduced considerably, with the changed in discretionary spending of consumers on non-essential items.