Mobile retail chains to discontinue sale of OnePlus devices from May 1 due to unresolved issues

Oneplus

OnePlus smartphones, tablets, and wearables will not be available in 4,500 stores across 23 retail chains in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Maharashtra, and Gujarat. These stores have decided to discontinue sales of OnePlus products starting May 1 due to unresolved issues regarding narrow profit margins, delays in claim processing, and bundling.

“Throughout the past year, we have encountered significant obstacles associated with selling OnePlus products, which remain unresolved. As esteemed partners, we had hoped for a more fruitful collaboration with OnePlus. Regrettably, the ongoing issues have left us with no alternative but to discontinue the sale of your products in our stores,” Sridhar TS, president of South Indian Organised Retailers Association (ORA), said in its April 10 letter to OnePlus India’s director of sales, Ranjeet Singh.

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

ORA, the registered association of Organized Retail Chains in India, has 23 members, including Poorvika, Sangeetha, Big C, and Pooja in the Southern and Western regions.

In the letter, the retailers said that consistently low-profit margins on OnePlus products have made it challenging to sustain their businesses, particularly amid rising operational and financial costs.

Moneycontrol has seen a copy of the letter.

Additionally, they highlighted continued delays and complications in processing warranty and service claims, which led to customer dissatisfaction and added burdens on their end despite repeated attempts to escalate and resolve these issues.

“We have experienced instances where we are compelled to bundle products or services with OnePlus devices, limiting our flexibility and hindering our ability to cater to diverse customer needs. Consequently, this has resulted in stagnant inventory and loss of sales,” Sridhar said.

OnePlus is yet to respond to Moneycontrol's queries.

Retailers alleged that model-specific bundling requirements have forced them to carry non-moving products, adversely affecting our already slim margins and posing unsustainable losses for our businesses.
“Despite our persistent efforts to address these concerns with your company, little progress or resolution has been achieved. Promises made have not been fulfilled, leaving us with no recourse but to take this drastic measure,” he said.

In February, retailers alleged the unauthorised diversion of products from e-commerce to retail channels disrupts fund rotation and denies the exchequer the opportunity to benefit from added rotational GST.

“A significant portion of products in the market continues to be channelled through e-commerce platforms, accompanied by exclusive offers, sidelining mainline channels,” Navneet Pathak, National Joint General Secretary at AIMRA, said in February.