The All India Mobile Retailers Association (AIMRA) is reportedly unhappy with POCO’s dominant smartphone sales through online channels. Retailers have accused the company of using unfair trade practices and distributing products through non-regular sales channels. AIMRA has also demanded the cancellation of POCO’s trading license for the same reasons.
What Has Happened?
According to the Economic Times, the AIMRA has written a letter to Himanshu Tandon, Country Head of POCO India, complaining that POCO favours online retailers and e-commerce giants. Retailers have also accused the company of monopolistic and anti-competitive behaviour.
Furthermore, the letter mentions that POCO uses illegitimate distribution channels without legitimate documentation. They say that POCO also evades taxes using such out-of-the-book methods.
In response to the concerns raised by the AIMRA, Himanshu Tandon said,
“POCO India is committed to offering customers a diverse range of purchasing options. through legitimate channels.”
The company has also partnered with Jio Digital Mart as an official offline distributor for mainline retail partners.
However, the AIMRA is not satisfied with Himanshu’s response. The association has further complained about the lack of supply of POCO products in some states of India. Retailers are adamant that the company predominantly distributes its phones through online channels.
The Competition Commission of India (CCI) or any other government body have not responded yet. It will be interesting to see how POCO handles this situation.
Offline Smartphone Market in India Gets Challenging
Recently, offline retailers in some parts of India announced that they will stop selling OnePlus smartphones starting May 1, 2024. Vendors say that OnePlus smartphones have low margins and it’s not sustainable for them to continue selling OnePlus products.
They also accused OnePlus of delays in customer service and other settlement-related business deals. OnePlus is yet to respond to the situation.
