In a letter to OnePlus India on Wednesday, the South India Organized Retailers Association (ORA) said the body’s members had encountered an increasing number of unresolved issues related to the sale of the company’s products, prompting them to cancel the sale of the products from May 1, according to reports in the Economic Times and other local media.
“Despite our continued efforts to address these concerns with your company, little progress or resolution has been achieved,” the trade body said in its letter to Ranjeet Singh, head of sales for OnePlus India, according to The Economic Times. “Promises made were not kept.”
“ORA would like to painfully announce our joint decision to stop selling OnePlus products in our facilities from May 1, 2024,” it added.
Among the issues cited by the agency are alleged low profit margins on OnePlus products, making it difficult for retailers to maintain their business. Another problem is complex warranty and repair processes, which, according to media reports, frustrate both customers and dealers.
ORA and OnePlus did not immediately respond to requests for comment on Friday.
The threat of losing access to some offline channels in half of India, the world’s second-largest mobile market, could deal a major blow to OnePlus and wipe out at least part of its offline sales push.
Established in mid-2021, ORA was founded by and represents leading mobile retail chains in South India.
The association includes 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 percent of mobile business in six southern Indian states.
Other concerns cited in the letter include an alleged bundling practice in which OnePlus asks retailers to sell accessories alongside phones, as well as a requirement to keep low-selling models in stock. The latter, the ORA claims, has led to stockpiles that are straining retailers’ already tight finances, according to local media reports.
“Regrettably, due to the ongoing issues, we have no choice but to stop selling your products in our stores,” the ORA said, adding that it urges OnePlus to proactively address these concerns by the end of this month.
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