Having recouped its lost sale a while back, the business is back on track for Realme. Registering a growth of 20-25 per cent from the last year, the company is now estimating to clock 6 million smartphones and 2 million AIOT (Artificial Intelligence of Things) products this festive season.
"While the festive season will be driven by digital push and TV advertisements, the most crucial driver will be the pent-up consumer sentiment that has been held in lockdown. Now that the lockdown is lifted, there will be a rush to release this inherent desire to consume, this festive season. The industry is witnessing a huge demand for flagship 5G smartphones, smart TV's, wearables and hearables, and this will continue for the whole festive season considering huge offers different brands are offering," said Madhav Sheth, Vice President, Realme and Chief Executive Officer, Realme India, Europe & Latin America.
With people moving back to their old routine, Realme believes macroeconomic conditions will improve, and the company expect these improved consumer sentiments will continue into the festive season as well. "People will be more optimistic about their future financial status, and will resume their investment in products or services that can help them improve and benefit in the long run," said Sheth.
He said this festive season, the company is aiming to sell 6 million handsets and 2 million AIOT products. "This is the minimum target that we are expecting to achieve. With the recent launch of our Realme Pad, Realme laptops and three new versatile technology products -- Realme TechLife Air Purifier, Realme TechLife Handheld Vacuum Cleaner and Realme TechLife Robot Vacuum, we aim to make a difference in the lives of our customers."
Since its inception as a youth-friendly company, Realme has been popular amongst millennials. However, as consumers continue to face challenges in terms of jobs and salary cuts, the company has introduced offers to avail discounts on various products during Flipkart's Big Billion Days sale. "This festive season, we are offering discounts worth Rs 500 crore on products, including smartphones, TV soundbars, TWS, speakers, wearables, tablets, power banks, smart home products, neckbands, and personal healthcare," said Sheth.
Realme has not just recouped most lost sales but has witnessed a 20-25 per cent growth from the last year. "We have witnessed a 10-20 per cent increase in online demand for Realme, and also saw steady offline sales. In this whole festive season, we will first see sales from online platforms, which will be the main driver in sync with Realme festive days and other sales events on partner platforms, that will continue with offline sales close to Diwali," said Sheth.
Realme managed to capture the fourth position in the Indian smartphone market, with a 14.6 per cent market share. It crossed 100 million in cumulative shipments since its launch and has reached 50 million units in cumulative shipments in India in Q2 2021.
The company has steered through the semiconductor shortage that has started to grip several other industries, including smartphones and consumer durables, by anticipating this shortfall well in time.
"To stay ahead of the curve with new and powerful 5G processors, we're aggressively working with mainstream chipset makers. Simultaneously, we're looking at collaborating with up-and-coming chipset manufacturers who can give the best value chipsets without sacrificing performance in their price range. For us, the chipset shortage will not be a problem. We are ensuring that our buyers will get products on time and there will be no shortage in supply of smartphones or any Realme products during the festive season," Seth added.
He said Realme's is targeting 300 million handsets by 2023. "We are aiming to achieve a dual 100 million by shipping another 100 million handsets by the end of 2022 and also completing the same milestone within the 2023 calendar year," said Sheth.
Hoping to break into the top two brands next year, Realme is estimating the market demand of 25-30 million smartphones in CY 2021.
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