OnePlus entangled in dispute with Indian retailers; ramifications across the market

OnePlus has been embroiled in a contentious dispute with retailers in India, leading to significant repercussions within the market. The Organized Retailers Association (ORA), representing a substantial network of 4,300 brick-and-mortar stores, declared a ban on selling OnePlus products effective May 1. However, this move may begin a more significant storm brewing. The All India Mobile Retailers Association (AIMRA), an even more influential body representing over 150,000 stores, deliberates a similar embargo. But what prompted such intense action from these retail giants against OnePlus?

Retailers are pointing fingers at OnePlus for a litany of grievances, including inadequate supply of stocks, unattractive profit margins, subpar handling of service claims, and a lack of engagement with retailers through promotional visits and product demonstrations. While the ORA primarily caters to stores in southern India, the potential involvement of AIMRA extends the reach of this issue nationwide. Should AIMRA throw its weight behind the ORA’s ban, it could effectively sever OnePlus’s access to offline distribution channels across the entire Indian market.

Responding to the outcry, OnePlus expressed appreciation for the support received from its retail partners over the past seven years. The company emphasized its commitment to addressing the highlighted concerns and pledged to strengthen its relationship with partners. However, OnePlus isn’t the sole target of retailers’ ire. AIMRA has also set its sights on Poco, a brand under Xiaomi’s umbrella, accusing it of favoring online sales and even alleging involvement in unauthorized distribution channels.

The escalating tensions underscore the delicate balance between manufacturers and retailers in India’s fiercely competitive mobile market, with both sides grappling for leverage and profitability amid shifting consumer preferences and market dynamics.