OnePlus Faces Potential Sales Ban in India Amid Retailer Backlash: AIMRA Raises Concerns
The All India Mobile Retailers Association (AIMRA) is considering halting sales of OnePlus products in India due to concerns about the company's treatment of mainline retailers. AIMRA has requested a meeting with OnePlus India's sales director to discuss these concerns. The South India Organised Retailers Association (ORA) has already suspended sales of OnePlus products from May 1 due to unresolved issues.
Chinese smartphone vendor OnePlus is facing the possibility of a wider sales ban in India as another major retail group considers halting the sale of its products. The All India Mobile Retailers Association (AIMRA), which represents over 150,000 brick-and-mortar smartphone retailers across the country, has expressed concerns about OnePlus' treatment of mainline retailers. AIMRA alleges that OnePlus has neglected retailers by failing to provide adequate stocks, offering poor margins, and not delivering on commitments. The association is now deliberating whether to stop sales of OnePlus products.
AIMRA has requested a meeting with Ranjeet Singh, sales director of OnePlus India, to discuss these concerns. The association has also shared its letter with the South China Morning Post. In the letter, AIMRA states that if the issues remain unresolved, they may consider stopping the OnePlus business across India. The association highlights the lack of support from OnePlus in terms of product demonstrations, promotions, and market visits to support retailers.
In response to the concerns raised by AIMRA, OnePlus has stated that it is working with partners to address the issues and remains committed to a strong relationship going forward. The company values the support it has received from its retail partners over the years.
This latest development adds to the challenges faced by OnePlus in India. Last week, the South India Organised Retailers Association (ORA) announced the suspension of sales of OnePlus products from May 1. ORA members cited unresolved issues related to low profit margins on OnePlus products and complex warranty and repair processes as reasons for their decision.
OnePlus has been experiencing growth in the Indian market, with a 33% year-on-year increase in market share in 2023. This growth has been driven by a broader product mix in the affordable premium smartphone segment and an offline channel push.
The All India Mobile Retailers Association (AIMRA) is considering halting sales of OnePlus products in India due to concerns about the company's treatment of mainline retailers.
AIMRA has requested a meeting with OnePlus India's sales director to discuss these concerns.
The South India Organised Retailers Association (ORA) has already suspended sales of OnePlus products from May 1 due to unresolved issues.
Source: SCMP