4,500 Stores in Six Indian States to Discontinue OnePlus Products Amid Profit Margin Concerns and Delayed Claim Processing
In a significant development for the mobile retail sector, over 4,500 stores spanning six states in India are set to discontinue the sale of OnePlus devices starting May 1, citing unresolved issues with the brand. This decision comes amidst concerns over consistently low-profit margins, delays in claim processing, and bundling requirements, as communicated in a recent letter sent by the South Indian Organised Retailers Association (ORA) to OnePlus India.
The letter, dated April 10, addressed to OnePlus India’s director of sales, Ranjeet Singh, outlines the challenges faced by retailers in sustaining their businesses while dealing with OnePlus products. Despite repeated attempts to address these issues, retailers have found themselves compelled to take this drastic step.
According to Sridhar TS, president of ORA, the decision to halt retail of OnePlus products stems from a culmination of ongoing challenges encountered by retailers, including narrow profit margins and complications in warranty and service claim processing. The letter expresses disappointment at the lack of progress in resolving these issues, despite efforts to engage with OnePlus.
The impact of this decision extends beyond just profit margins, with retailers highlighting the burden of bundling requirements imposed by OnePlus. This has limited their flexibility in catering to diverse customer needs, resulting in stagnant inventory and loss of sales. Additionally, concerns have been raised regarding the unauthorized diversion of products from e-commerce to retail channels, disrupting fund rotation and denying the exchequer the opportunity to benefit from added rotational GST.
The move by ORA, representing 23 organized retail chains in India, reflects a growing frustration among retailers regarding their partnership with OnePlus. With the discontinuation of OnePlus products in a significant number of stores, the brand may face challenges in maintaining its market presence and addressing the grievances of its retail partners.
Despite repeated attempts to escalate and resolve these issues, OnePlus is yet to respond to queries raised by retailers. As the May 1 deadline approaches, the mobile retail industry awaits further developments regarding the resolution of these issues and the future of OnePlus products in the Indian market.
