Poco ran out of inventory in India after Diwali, country director shares why

Xiaomi spun off its Poco sub-brand into a separate entity back in 2020. Since then we have been seeing the brand introduce rebranded Redmi smartphones across the globe. The company has managed to gain a lot of traction. Back in November, the brand ran dry in terms of inventory in India.

During an interview with BGR India, Anuj Sharma Country Director Poco India said that the company ran out of inventory by the end of Diwali 2021. The reason behind this was two-fold: extremely high demand and the ongoing semiconductor shortage.

First explaining from the demand and supply perspective, Sharma stated that the company sets and follows certain plans to handle the market and due to a shift in its planning it failed to meet the heightened demand. Till 2020, the company followed a forecasting plan of two to three months, with which it could have handled November and December. However, due to the change in its market forecasting strategy it now accounts for six to seven months in the future. It was not able to forecast the demand accurately.

Explaining the new forecasting method Sharma stated that starting today, the company already has to start thinking about Diwali. This shift in the forecasting method has removed the flexibility and has led to an industry-wide consolidation.

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(Image: Linkedin)

Sharma did not go into the details of the ongoing semiconductor shortage, as it is an industry-wide trend, with all Original Equipment Manufacturers (OEMs) having to deal with the issue.

Poco is expected to learn from its shortfalls during 2021, and manage to meet the market demand this year without running out of inventory before the year ends.

Touching on the basic points, the ongoing semiconductor shortage has been caused due to the surging demand for consumer products that utilise chips like mobiles, laptops, cars and more. Apart from the surging demand, the ongoing pandemic has also caused disruptions in production. Both of these reasons glued together are the major causes of the shortages and skyrocketing prices for semiconductors over the past two years.

The post Poco ran out of inventory in India after Diwali, country director shares why appeared first on BGR India.

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