COVID-19 effect: Mobile smart handset reduce offline workforce
Amid pandemic, several Indian brands have started reducing retail store workforce, or in-store promoters, due to zero sales in the offline channel, even as the likes of Xiaomi and some large-format and multi-brand retailers have reached out to landowners, asking for a rent waiver for at least three months.
Sources familiar with the matter said brands like HMD Global and Lenovo-Motorola are now reducing in-store promoters, and are also cutting incentives for retailers, seeing no sales in the market. They said that retailers will not do billing for at least a quarter and will not take sell-ins since they are already sitting on inventory.
HMD Global, the maker of Nokia handsets, didn’t comment on the layoffs but in a statement, said, “There’s no doubt that the ongoing impact of COVID-19 is taking its toll on markets and like many businesses, this pandemic has impacted ours.”
The spokesperson of HMD Global though said that salaries for March 2020 to all promoters were paid. “As with the rest of the industry, we continue to observe and evaluate the situation given the COVID-19 pandemic.”
AIMRA National President Arvinder Khurana said that retailers need to pay salaries to employees, and if lockdown continues beyond April month, then all retailers will suffer.
“Small retailers will go bankrupt in case of an extended lockdown. Lockdown is a loss bearing period. Government hasn’t provided any relief. There is electricity, Wi-Fi charges, salaries of guards, labour force that retailers are concerned about,” said Khurana
“All retailers are under pressure from distributors. Aging stocks will also result in losses to retailers,” he added.
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