Why mobile retailers in India are seeking cancellation of Poco’s trading license

poco retailers complaint

The All India Mobile Retailers Association (AIMRA) has reportedly accused smartphone brand Poco of favouring online sales and indulging in anti-competitive behaviour. According to a report by The Economic Times, in a letter to POCO India's country head, Himanshu Tandon, AIMRA expressed concerns about the brand's business practices, which they believe are "monopolistic and anti-competitive.”

AIMRA’s national joint general secretary Navneet Pathak said, “With continuous feedback and hue and cry from our retailers. It has come to our attention that POCO's strategy appears to favour exclusive online sales, a move that reeks of monopolistic and anti-competitive behaviour.” He further mentioned that  AIMRA had raised the issue with other associations like CAIT and ORA to the finance and commerce ministry as well as CCI to look into Poco’s operations.

The association also attached screenshots of Poco’s exclusive launches on e-commerce platforms alleging collusion for selling its smartphones through unauthorised channels bypassing authentic distributors. “Before resorting to further measures involving regulatory authorities, we invite you to engage in discussions with us to find a mutually beneficial solution. This presents an opportunity for POCO to enhance its reputation and expand its global reach,” AIMRA further said in the letter.

What Poco has to say
The report also quotes a reply from Tandon, who is the company’s country head. "Poco India is committed to offering customers a diverse range of purchasing options through legitimate channels, including a strategic partnership with Jio Mart Digital as our official offline distributor for mainline retail partners,” he told The Economic Times.

AIMRA representatives from several Indian states have challenged Poco’s response, states the report. They noted a lack of Poco products available in their regions despite the JMD partnership. They argued that JMD's limited presence hinders the effective promotion of Poco devices.

Also read: OnePlus reacts to Indian retailers' boycott threat, says working to resolve issues