OnePlus under fire as retailers flag grey market surge, supply chaos arising amid 'online pivot'

oneplus

• OnePlus criticized by offline retailers for online sales focus
• ORA warns of supply disruptions and grey market leakages
• Retailers demand clarity on OnePlus's India sales strategy

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Chinese smartphone brand OnePlus is facing growing resistance from offline retailers over its apparent pivot toward online sales, with trade partners warning of supply disruptions, grey market leakages and rising financial stress.

Retailers and distributors say inconsistent product availability and “hollow assurances” have left partners, many of whom invested heavily in OnePlus inventory, struggling.

OnePlus reportedly started notifying distributors and retailers that a majority of its stocks will now be sold online.

The Organised Retailers Association (ORA) has escalated the matter, writing to OnePlus India CEO Robin Liu to flag "widening communication gap" and increasing distress among channel partners.

In its third letter dated March 17, a copc of  which has been reviewed by Moneycontrol, the association said it has received no response from either the company’s India team or its global leadership. “The silence… is deafening,” ORA said, highlighting mounting unease across the offline retail ecosystem.

The association had voiced concerns in February 14 and February 25 letters as well.

While the company has not officially confirmed "online-centric” sales strategy,  ORA warned that any sharp tilt toward online channels could disrupt the broader market.

According to the association, such a move risks large-scale diversion of inventory into the grey market. It estimates that in heavily online-led models, over 90 percent of stock can leak into unauthorised channels, giving rise to parallel distribution networks operating outside regulatory oversight.

ORA alleged that these operators often engage in questionable practices, including issuing fake invoices, conducting “air activations” to fraudulently claim bank cashback offers, and participating in GST invoice trading to claim undue tax benefits — distorting prices and causing potential losses to the exchequer.

It also flagged risks for consumers, warning that buyers seeking legitimate offline purchases could unknowingly receive pre-activated or unauthorised devices routed through such channels.

ORA has urged OnePlus to publicly clarify its India strategy and initiate formal engagement with stakeholders. “Our members need clarity to plan their business investments,” said Kailash Lakhyani in the March 17 letter.

OnePlus had not responded to Moneycontrol queries at the time of publication.

The developments come amid rising channel tensions in India’s smartphone market, as brands recalibrate their online-offline mix in response to shifting demand and cost pressures.

OnePlus operates as a sub-brand of Oppo, which has also begun integrating operations of Realme as part of a broader consolidation strategy. The restructuring has already led to cuts in sales and support teams, sources said.

Realme, too, is said to be increasing its focus on online channels. Sales teams have been asked to align with a revised structure, while employees in sales and service network roles have reportedly been asked to resign by April 30, as Moneycontrol reported in early February. More functions are expected to be impacted as the streamlining exercise gathers pace.