POCO Faces Backlash from Indian Retailers Over Online Sales Practices

Highlights

• Indian retailers accuse POCO of favoring online sales over traditional stores.
• Retailers demand revocation of POCO’s trading license due to unfair practices.
• OnePlus also faces retailer backlash over profit margins and customer service.
• No response yet from the Competition Commission of India on the issue.

The mobile retailers’ association in India has gotten itself all riled up over POCO’s alleged shady business tactics and its heavy reliance on virtual storefronts for peddling its smartphone wares.

These vendor folks have gone and accused the company of playing favorites with the e-commerce giants, monopolizing the market, and using sketchy distribution channels without proper paperwork to dodge those pesky taxes.

POCO Using Unfair Business Techniques

In a stern missive addressed to POCO India’s top dog, Himanshu Tandon, the association has raised a stink over the company’s apparent bias towards online sales, leaving the brick-and-mortar dealers in some regions high and dry when it comes to stock.

These irate retailers are even demanding that POCO’s trading license gets the boot for such alleged shenanigans.

Now, POCO has tied the knot with Jio Digital Mart as an official offline distributor for its mainline retail partners, but the association ain’t buying it.

They’ve doubled down on their gripes, claiming that POCO’s primary hustle is peddling phones through virtual channels, leaving the offline market in the dust.

So far, the Competition Commission of India or any other government watchdog haven’t responded back at the situation, leaving POCO to navigate these choppy waters on its own.

OnePlus Facing Problems in Offline Business

But wait, there’s more!

The offline smartphone market in India is starting to look like a minefield for brands.

Just recently, offline retailers in some parts of the country announced they’ll be giving OnePlus smartphones the cold shoulder come May 1, 2024, citing razor-thin profit margins and unsustainable business practices.

They’ve also accused OnePlus of dragging its feet when it comes to customer service and settlement-related shenanigans.

OnePlus hasn’t piped up about this mess yet.

FAQs

What are the main accusations against POCO by Indian mobile retailers?

Indian retailers have accused POCO of preferring online sales channels, which allegedly harms brick-and-mortar stores by limiting their stock and competitive ability.

Why are retailers demanding the revocation of POCO’s trading license?

Retailers claim that POCO uses dubious distribution practices and lacks proper paperwork, which they believe justifies revoking its trading license to protect market fairness.

What relationship does POCO have with Jio Digital Mart?

Despite POCO announcing Jio Digital Mart as its official offline distributor, retailers argue that POCO still primarily promotes its products through online channels, sidelining physical store partners.

How has OnePlus been impacted by similar issues in the offline market?

OnePlus is reportedly facing boycotts from offline retailers starting May 2024, due to unsatisfactory profit margins and alleged delays in customer service and settlements.

Has there been any regulatory response to these allegations against POCO and OnePlus?

As of now, there has been no official response from the Competition Commission of India or any other regulatory body regarding the allegations against POCO and OnePlus.

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