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After OnePlus, Mobile retailers in South India are now angry with Poco- Here’s all details

South Indian retailers are urging government intervention against Poco, alleging unfair business practices favouring online distribution over mainstream channels.

Updated on: Apr 24 2024, 13:14 IST
South Indian retailers seek government intervention against Poco for allegedly neglecting offline sales channels. (Poco )

The South Indian Organised Retailers Association is gearing up to approach the central government regarding the business practices of Xiaomi’s sub-brand Poco. According to reports, offline retailers are alleging that the smartphone manufacturer is neglecting to supply phones to mainstream channels.

In a statement, the ORA asserted that Poco's approach to business indicates a tendency to cut costs by favouring online and "illegitimate" distribution channels, neglecting the consumer experience.

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The retailers' body further claims that Poco's operations are not contributing to job creation in India. Unlike other major smartphone brands such as Samsung, Vivo, and Oppo, Poco allegedly operates with just three distributors in the country and lacks sales promoters.

Why These Practices Are Deemed Unfair

The ORA argues that Poco's actions not only undermine legitimate sales channels but also lead to financial losses for the government. Retailers argue that Poco's unfair business practices have wide-ranging implications for the industry and the economy as a whole.

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In a statement to PTI, the ORA stated: “We cannot permit a brand to operate in India at the expense of legitimate businesses and government revenue. ORA will call upon the appropriate authorities to swiftly address Poco's conduct and establish a standard for ethical business practices in the country.”

Retailers' Attempts to Engage with Poco

The ORA asserts that it has made numerous attempts to address these concerns with Poco's leadership team. However, the lack of response from the company has forced the retailers' body to take action. This includes escalating the matter to relevant ministries and departments after the Lok Sabha elections, with a demand for the cancellation of Poco's trade licence, the statement highlighted.

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Furthermore, the ORA indicated that retailers are prepared to file a case with the Competition Commission of India (CCI) to ensure accountability and transparency in the smartphone market.

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First Published Date: 24 Apr, 13:14 IST