In a surprising move, thousands of retail stores in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Maharashtra, and Gujarat have decided to discontinue the sales of OnePlus products, including smartphones, tablets, and wearables, starting from May 1. The decision comes as a result of several unresolved issues that the retailers have faced, including narrow profit margins, delays in claim processing, and bundling.
Sridhar TS, the president of the South Indian Organized Retailers Association (ORA), expressed his disappointment in a letter to OnePlus India’s director of sales, Ranjeet Singh. He highlighted the significant obstacles they have encountered throughout the past year, which have remained unresolved. Despite being esteemed partners, the ongoing issues have left them with no choice but to halt the sale of OnePlus products in their stores.
The ORA, which is the registered Organized Retail Association, comprises 23 members, including well-known retailers like Poorvika, Sangeetha, Big C, and Pooja in the Southern and Western regions of India. According to Sridhar, their decision was not made lightly and was a collective choice to address the challenges they have faced.
One of the main concerns raised by the retailers is the forced bundling of products or services with OnePlus devices. This limitation has hindered their ability to cater to diverse customer needs and has resulted in stagnant inventory and loss of sales. Despite their persistent efforts to address these concerns with OnePlus, little progress or resolution has been achieved, leading them to take this drastic measure.
Additionally, retailers have expressed concerns over the unauthorized diversion of products from e-commerce to retail channels. This diversion not only hampers fund rotation but also prevents the exchequer from benefiting from the added rotational GST.
The discontinuation of OnePlus product sales by these 4,500 retail stores is expected to have a significant impact on the brand’s reach and availability in the mentioned regions. OnePlus now faces the challenge of resolving the issues raised by the retailers if they wish to regain their presence in these markets.
The retail industry in India is highly competitive, with numerous brands and products vying for consumer attention. In recent years, OnePlus has emerged as a popular player in the Indian smartphone market, offering high-quality devices with competitive prices. However, the recent decision by thousands of retailers in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Maharashtra, and Gujarat to discontinue the sales of OnePlus products highlights the challenges faced by the brand in the region.
One of the key issues raised by the retailers is the narrow profit margins associated with selling OnePlus products. Despite the brand’s popularity among consumers, retailers claim that the profit margins are too low to sustain their operations effectively. This concern has been voiced by the South Indian Organized Retailers Association (ORA), a registered association comprising 23 members from the Southern and Western regions of India.
Another issue that has led to the discontinuation of OnePlus product sales is the delays in claim processing. Retailers claim that the process of filing and resolving claims with OnePlus has been inefficient and time-consuming, causing a strain on their business operations. This has resulted in frustration among the retailers and a loss of confidence in the brand.
The forced bundling of products or services with OnePlus devices is another concern raised by retailers. They argue that this practice limits their ability to cater to the diverse needs of their customers and leads to stagnant inventory. Retailers have expressed their desire for more flexibility in selling OnePlus products without any mandatory bundling requirements.
Additionally, retailers have raised concerns about the unauthorized diversion of products from e-commerce to retail channels. This unauthorized diversion not only disrupts the supply chain and hampers fund rotation but also prevents the exchequer from benefiting from the added rotational Goods and Services Tax (GST).
The discontinuation of OnePlus product sales by these 4,500 retail stores is expected to have a significant impact on the brand’s reach and availability in the mentioned regions. To regain their presence in these markets, OnePlus will need to address the concerns raised by the retailers promptly and effectively. Failure to do so may result in a further decline in sales and market share for the brand.
For more information on the challenges faced by the retail industry in India and the impact of the discontinuation of OnePlus product sales, you can visit the South Indian Organized Retailers Association (ORA) website at https://www.ora.org.in.