Retailers urge Vivo to rethink Zepto tie-up, warn of market disruption

Zepto

Offline mobile retailers have called on smartphone manufacturer Vivo to reconsider its partnership with quick commerce platform Zepto, saying such tie-ups disrupt traditional retail structure, fuel grey market and erode the trust they have built with customers over time.

Zepto recently partnered with Vivo to sell its entry-level smartphones, Y18i and Y29, offering an exclusive 5 percent ICICI Bank discount on purchases over Rs 5,000.

"Over the years, Vivo India has witnessed remarkable growth, walking hand in hand with mainline retailers. Your steady rise to the No.1 position is a testament to the strong partnerships built within the retail ecosystem. However, the recent news in various media regarding Vivo's reported tie-up with Zepto and other quick commerce platforms is deeply concerning," All India Mobile Retailers Association (AIMRA) national joint secretary Navneet Pathak said in a letter to Vivo India CEO Jerome Chen,

AIMRA, representing 1.5 lakh retailers, argued that quick commerce does not add value to brands but disrupts the retail network, warning that short-term sales tactics could destabilise long-term retail relationships.

"We strongly urge you to reconsider engaging with quick commerce platforms and instead reinforce your commitment to mainline retailers who have been instrumental in your journey. Strengthening this bond will not only protect the brand's integrity but also fortify the trust of your dedicated retail partners, ensuring continued growth and success," Pathak added.

Mobile retailers have also been at loggerheads with other Chinese smartphone brands and have accused them of engaging in anti-competitive practices, such as prioritising online sales channels that result in financial losses for the government.

They have urged the Centre to prohibit Chinese-owned brands such as iQoo (owned by Vivo), Poco (owned by Xiaomi), and OnePlus (owned by Oppo) from doing business in India.

Retailers previously also sought the intervention of commerce and industry Minister Piyush Goyal.

Last year, the Competition Commission of India (CCI) accused Chinese smartphone makers and South Korean giant Samsung of collaborating with Amazon and Flipkart to roll out their products exclusively on these e-commerce platforms in breach of antitrust laws.

A probe by CCI found that Amazon and Flipkart violated competition laws by giving preference to select sellers, prioritising certain listings and steeply discounting products, hurting other companies.