OnePlus is facing intense pressure from offline retailers in India and the company faces a future where its phones will be off the shelves. OnePlus has been allegedly offering discounts and deals that has caused distrust among its distributors in the country and they want the brand to connect with them better and offer all its services.
OnePlus has been working the matter behind the scenes but earlier this week, the company finally spoke on the issue and assured that it will resolve the problems faced by its retailers in the country. “OnePlus values all the support it has received from our trusted retail partners in the last 7 years. At present, we are working with our partners to address the areas highlighted, ensuring our continued commitment to a strong and prosperous relationship going forward,” OnePlus said in its statement to News18 Tech.
OnePlus has been a core part of the smartphone market in India since its debut. It has expanded its reach beyond the online channels to retailers and also set up its own stores. Retailer bodies in the country claim the company doesn’t offer them enough margins and they have issues with warranty claims as well.
The South Indian Organized Retailers Association (ORA) along with the All India Mobile Retailers Association (AIMRA) could give OnePlus a big jolt in the country, banning the sale of company’s products at over 150,000 retail stores, which is not ideal and it seems OnePlus realises the problem and the need to fix the situation before the supposed May 1 deadline when its products could be banned from selling at the offline stores.
OnePlus might have felt less pressurised when only some regions in India were going to face the sales ban but AIMRA entering the picture makes it a complete sales ban, which is not good news at all. The retailer body has been quoted saying that OnePlus has neglected the mainline retailers in the country, not giving them enough stocks to sell, and even offer lower margins than other brands.
It also points out that OnePlus does not have a meaningful relationship with the retailers which is never ideal if a company wants its phones to sell through the offline channel in the country. OnePlus has claimed to be one of the top-sellers via online channels but its focus on the offline market seems to have wavered which seems to have caused this displeasure among the retailers in the country.
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