Retail electronics firms scale up inventory, anticipating demand surge soon

This buildup is owing to the fact that demand peaked before Diwali and then drastically declined afterwards due to high inflation and thus retailers cut down inventory levels

Consumer electronics manufacturers have started to increase their stock levels of both components and finished goods in anticipation of a recovery in demand in the upcoming quarter and to protect their operations from any potential supply chain disruption in China, as it has been recently due to an increase in Covid cases, Economic Times reported.

Executives from a number of companies told ET that this buildup is owing to the fact that demand peaked before Diwali and then drastically declined afterwards due to high inflation and retailers' reductions in inventory levels.

Deepak Bansal, vice president at LG India, the country’s