Demand for electronics plummets in Mohali

Tribune News Service

Mohali, October 18

A day before Diwali, shopkeepers in Mohali said the sale of electronics had declined due to higher Goods and Services Tax (GST) besides competition from online retailers.

Despite lucrative offers, the sale of LED televisions, washing machines, dish-washers, microwaves and other appliances has gone down.

Raj, at the IFB dealership in the Phase 3B2 market, said people preferred to purchase electronic items online.

“Earlier, there was a trust deficit. People were reluctant to purchase electronics online. However, there has been a shift in their preferences now,” he said.    

He said, “e-commerce websites such as Amazon and Flipkart recently announced a massive sale on electronic items. So, the demand in the market for these is low,”he said, adding that it was tough to compete with them as they were offering relatively lower prices. Other shopkeepers said their business was down by 20-30 per cent this year. 

“We are offering 10 per cent discount on microwaves and 15 per cent on washing machines. Special offers are being given on the purchase of rs 1 lakh but the response from people has been lukewarm,” said a shopkeeper at the Phase VII market.

Traders said electronic items sold less due to high GST (28 per cent). “Electronic items are in the highest GST slab. This has contributed to a significant price rise, which has lowered the demand,” said Gurpreet Singh, an employee at the Samsung dealership in Phase 3B2.