OnePlus faces complaints from Indian retailers as Chinese smartphone brand tries to maintain its slice of the market

In a letter to OnePlus India on Wednesday, the South India Organised Retailers Association (ORA) said members of the body had run into an increasing number of unresolved issues related to selling the company’s products, moving them to suspend sales of the products from May 1, according to reports from The Economic Times and other local media.

“Despite our persistent efforts to address these concerns with your company, little progress or resolution has been achieved,” the trade body said in its letter addressing Ranjeet Singh, the sales director of OnePlus India, according to The Economic Times. “Promises made have not been fulfilled.”

“ORA painfully wishes to inform our collective decision to halt the retail of OnePlus products in our establishments from 1st May, 2024,” it added.

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Some issues the body listed include alleged low profit margins on OnePlus products, making it challenging for retailers to sustain their businesses. Complex warranty and repair processes were another concern, as they frustrated both customers and retailers, according to the media reports.

The ORA and OnePlus did not immediately respond to requests for comment on Friday.

The looming loss of access to some offline channels in half of India, the world’s second largest mobile market, could deal a significant blow to OnePlus, derailing at least part of its offline sales push.

Formed in the middle of 2021, the ORA was created by and represents leading mobile retail chains in South India.

The association covers more than 20 different retail chains – including major retailers Poorvika, Sangeetha and Big C – with more than 4,000 stores, accounting for more than 40 per cent of the mobile phone businesses across six southern Indian states.

Other concerns cited in the letter include an alleged bundling practice, whereby OnePlus asks retailers to sell accessories alongside phones, and demands for keeping low-selling models in stock. The latter, the ORA alleges, has led to inventory stockpiling that stretches retailers’ already thin finances, according to local media reports.

“Regrettably, the ongoing issues have left us with no alternative but to discontinue the sale of your products in our stores,” the ORA said, adding that it urges OnePlus to proactively address these concerns by the end of this month.