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Some retailers said they are extending their stock rules from a 21-day period to a 30-day period.
While overall handset supplies are set to dwindle, industry insiders expect offline stores to be hit harder than their online rivals as brands are seen pushing a bulk of whatever stocks they have online.
“Both online and offline will face a supply issue because of the component shortages, but more buyers will flock to the ecommerce sites knowing that they may not get many options in the stores,” said Navkendar Singh, research director, client devices<\/a> and IPDS (imaging, printing and document solutions) at IDC India<\/a>.
An industry executive who did not want to be named said, “You may go to a retail store and there is a 60-70% chance the model you want will not be there but will be available online.”
Brands and the retailers typically bank on the festive season for a third of their annual sales.
Supply chain issues can well detail their annual sales targets, industry experts said. Currently, IDC expects a single digit growth in smartphone shipments for 2021 while some predict flat growth over 2020.
A multi-brand retailer told ET that they are picking up 30 days’ worth of stocks compared to earlier 21 days before the festive season, fearing they may not get more handsets, if needed, later.
Another retail chain store said customers in tier II and III will be impacted since the larger brands will focus on the metros through their own stores and larger retail outlets.
In India, the online and offline markets are almost at par, but Covid-19 has pushed customers towards online purchases, as reflected in the growth of e-tailers in handsets in recent months.
Some brands that have launched new models have not even distributed to offline retailers yet, industry insiders said.
“Specially brands like Xiaomi have a business practice of giving new launches and window period to online exclusively, and due to shortage their new launches do not reach to offline stores for long,” said Arvinder Khurana, national president of All India Mobile Retailers Association (AIMRA).
“The online exclusive deals with handset brands are another reason for this problem,” he said. “Samsung, Oppo, realme, (and) Mi (Xiaomi) are some of the brands that have been in short supply from the last few weeks and may see a shortage.”
However, Xiaomi refuted AIMRA’s claims and said the handset maker has maintained “balanced focus” between both online and offline channels.