Now, the debacle is escalating: another 150,000 stores in India threaten to do the same and potentially stop offering phones like the OnePlus 12 and the OnePlus Open.
OnePlus faces market uncertainty in India as local retailers, represented by the South Indian Organized Retailers Association (ORA), will stop selling its products from May 1. This affects over 20 retail chains and 4,300 stores associated with the ORA. The decision follows criticism regarding OnePlus' business practices, particularly issues with warranty claims and low profit margins for retailers.
While OnePlus products will still be available online on platforms like Amazon India and Flipkart, losing the Indian offline retail market is a significant setback for OnePlus, potentially impacting its market presence and accessibility in the region.
The ban could go nation-wide
Now, the All India Mobile Retailers Association (AIMRA) joins the fight. AIMRA represents over 150,000 offline smartphone retailers in India and has informed OnePlus that its members are considering halting sales of OnePlus products. This potential action by AIMRA, with its extensive membership, would have a more substantial impact compared to the South Indian Organized Retailers Association (ORA), which represents 4,300 offline retailers and has already announced a sales ban starting May 1.
In a letter seen by Android Authority, AIMRA expressed support for ORA's decision to cease selling OnePlus products. The letter also indicated that if unresolved issues persist, AIMRA may follow suit and suspend OnePlus business across India, citing ongoing challenges with commitments and deliveries in the general mainline trade:
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"We may also stop the OnePlus business across India if issues are unresolved as the situation remains worse in the general mainline trade with no solace and deliveries on commitments," read an excerpt of the letter.
The group also revealed the reasons for its threat:
For years, OnePlus India has neglected mainline retailers by failing to provide adequate stocks, offering poor margins, settling claims poorly, failing to deliver commitments and lacking a meaningful relationship with retailers in India (no demos, no promoters, no market visits overall, no SOPs) demonstrating neglect.
Meanwhile, OnePlus has finally reacted and gave out a laconic, corporate answer:
OnePlus values all the support it has received from our trusted retail partners in the last 7 years. At present, we are working with our partners to address the areas highlighted, ensuring our continued commitment to a strong and prosperous relationship going forward.
What about Xiaomi's sub brand?
Retailers in India also threaten Poco, a sub brand of Xiaomi's. According to a report by ET Retail, AIMRA has raised concerns about Xiaomi-owned smartphone brand Poco. There are claims made that its business practices in India prioritize e-commerce platforms and selling through illegitimate channels, thus evading taxes.
"With continuous feedback and hue and cry from our retailers, it has come to our attention that Poco's strategy appears to favor exclusive online sales, a move that reeks of monopolistic and anti-competitive behavior", AIMRA claims in a letter and took matters to the Finance and Commerce Ministry to investigate into Poco's operations.
The organization also says that "It's time to demand the cancellation of their trading license on continued anomalies and bypassing the law of land in India".
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Sebastian, a veteran of a tech writer with over 15 years of experience in media and marketing, blends his lifelong fascination with writing and technology to provide valuable insights into the realm of mobile devices. Embracing the evolution from PCs to smartphones, he harbors a special appreciation for the Google Pixel line due to their superior camera capabilities. Known for his engaging storytelling style, sprinkled with rich literary and film references, Sebastian critically explores the impact of technology on society, while also perpetually seeking out the next great tech deal, making him a distinct and relatable voice in the tech world.
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