OnePlus may face sales ban in India: Here's why
What's the story
OnePlus may face an offline sales suspension in India, as a significant retail industry group is contemplating discontinuing the sale of the company's products in the country. All India Mobile Retailers Association (AIMRA), which represents over 150,000 physical smartphone retailers nationwide, has expressed its concerns to Ranjeet Singh, OnePlus India's sales director, criticizing the company for neglecting mainstream retailers. In response to the concerns raised by AIMRA, OnePlus said that it is actively working with partners to address the issues.
Grievances aired
Retailers express dissatisfaction with OnePlus practices
AIMRA has voiced several grievances against OnePlus, including inadequate stock supply, poor profit margins, unsatisfactory claim settlements, and an insufficient relationship with Indian retailers. The association warned in a statement that "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." This indicates serious dissatisfaction among retailers towards OnePlus's business practices.
Sales halt
South India Retailers Association halts OnePlus sales
The South India Organised Retailers Association (ORA) has already planned to stop selling OnePlus products from May 1. This decision was made due to unresolved issues concerning low profit margins and complicated warranty and repair processes. ORA, which represents over 20 different retail chains with more than 4,000 stores, accounts for over 40% of the total handset business across six southern Indian states.
Information
Potential impact on OnePlus's market share in India
The potential sales ban could significantly affect OnePlus's market share in India. According to Counterpoint Research, in 2023 alone, the company's market share grew by 33%, primarily due to its diverse product range in the affordable and premium smartphone segments and its offline channel push.