Explained: Why are POCO and OnePlus in trouble in India?
Representing over 150,000 mobile retailers nationwide, AIMRA claims that POCO and OnePlus are violating national regulations and statutes, leading to trade issues
FollowThe All India Mobile Retailers Association (AIMRA) has urged the Competition Commission of India (CCI) to address alleged anti-competitive practices by smartphone brands POCO and OnePlus. Representing over 150,000 mobile retailers nationwide, AIMRA claims that POCO and OnePlus are violating national regulations and statutes, leading to trade issues as reported by the Financial Express (FE).
What are the allegations against POCO and OnePlus?
AIMRA alleges that Xiaomi's sub-brand POCO and OnePlus engage in monopolistic practices by favouring online sales channels over offline retailers. The association has raised concerns about the impact of these practices on consumer experience and job creation in India.
In its statement, the South Indian Organised Retailers Association (ORA) criticized POCO's approach to business, alleging a preference for online and "illegitimate" distribution channels that disregard consumer experience and job creation. The association highlighted that POCO operates with only three distributors in the country and lacks dedicated sales promoters.
Why are the retailers crying foul?
Due to the unavailability of POCO and OnePlus products in mainline (offline) retail outlets, many retailers resort to procuring products from e-commerce platforms at discounted rates, which they then resell to consumers.
Several retailers across India have stopped selling OnePlus phones since May 1 due to perceived issues such as unprofessional behavior toward offline retailers, price disparities between online and offline platforms, less favourable margin structures, and delays in claim settlements.
Kailash Lakhyani, founder chairman of AIMRA, emphasized the importance of CCI's intervention to address malpractices within e-commerce platforms and collusion with mobile phone manufacturers. Lakhyani stated that strict actions and penalties are necessary to ensure fair competition and a level playing field in the market.
ORA emphasized the need for swift action to address POCO's conduct and establish standards for ethical business practices in the country, aiming to prevent brands from operating at the expense of legitimate businesses and government revenue.
