ELECTRICAL APPLIANCES MARKET SALES STRONGLY DECREASED BY THE IMPACT OF COVID 19

Currently, the inventory of electrical appliances has increased by about 30% compared to the same period last year, with the number of up to millions of products as estimated by businesses. electronics retail. The main reason is that many big cities implement social distancing, electronics supermarkets have to close, and online sales channels face difficulties.

If in the past, traditional retail systems and e-commerce floors, only implemented promotions on holidays or important days. This year, the prolonged Covid-19 epidemic seriously affected the electronics market, sales plummeted, inventories increased. In order to improve sales, settle inventory and attract users, a series of electronics stores have implemented promotions and huge discounts.

Due to the impact of the Covid-19 epidemic and consumers tightening their spending, from the beginning of 5/2021, electrical and electronic products of all kinds consumed very slowly, the price dropped sharply without customers. The biggest drop in sales belonged to TV products, although prices fell deeply, still sluggish.

Ho Chi Minh City implemented social distancing, electronics supermarkets had to close, only operating in a few provinces. Therefore, sales decreased sharply because HCM is a large market with the largest sales. Previously, sales are now less than 30%.

Inventories increased but could not be transferred to the provinces where electronics supermarkets are still operating because they are not in the "green channel". Some household items are still suitable for customers' needs, but online orders have problems with transportation due to a lack of transportation and installation staff, so they cannot be delivered.

Most workers are on unpaid leave. In some localities, when supermarkets were still open, they had to cut back on staff because of lack of customers and a decrease in sales. Businesses have tried to manage, but the situation is still not getting better. While each enterprise has thousands of employees, most of them have to take unpaid leave. 

The biggest wish of electronics supermarkets is to break even this year, but that is also difficult to come true. When many supermarkets have to close for a long time, sales plummet, and operating costs are still high, it is difficult to avoid losses.

The general trend of electronics supermarkets from now until the end of the year is to continue cutting costs, cutting labor, closing inefficient selling points, promoting online sales channels, and launching discount programs. shock to quickly release inventory.