OnePlus is one of the most successful mobile brands in India, partly thanks to its high mobile specifications and relatively affordable costs. However, that might change soon thanks to some long-standing issues with the South Indian Organized Retailers Association (ORA). A letter the ORA sent details the issues Indian retailers have faced with OnePlus and why they have decided to stop selling the company’s products.
The core reason OnePlus finds itself in hot water is reportedly the company’s business practices. The ORA doesn’t seem to be alone, as the wider All India Mobile Retailer Association (AIMRA) has reportedly also bashed the business’ practices.
Over 4,300 retailers to stop selling OnePlus products
OnePlus’s sales are ending at South Indian ORA-affiliated offline stores from May 1. The ORA represents over 20 retail chains and over 4,300 stores, making this a significant blow for OnePlus. OnePlus will lose one of its biggest markets if it doesn’t do something to avoid the Association’s decision.
In the letter sent by ORA, two primary reasons were given for the decision to stop the sale of OnePlus products. The first reason was the issues faced by consumers when they tried to make warranty claims with OnePlus. One of the biggest things a consumer looks for in a mobile brand is its after-sales service.
The frequent delays in warranty and service claims by OnePlus affected the reputation of the OEM and the retailers selling the products. The retailer tried to communicate with OnePlus to try and make it change. The failed talks led to the decision to end ties with OnePlus rather than harm its reputation anymore.
Low-profit margins might not be worth the trouble
The second reason the ORA’s letter gave is more personal for the retailers. According to the letter, retailers are selling OnePlus products at “consistently low profit margins.” The primary objective for any business is to make a profit, and if it makes low or no profit then variables need to change. In this case, as the retailers sell products of various brands, the logical solution was to drop the brand that was not worth the hassle, especially when considering the ongoing warranty and service claim problems.
With low profit margins and customer complaints about warranty claim issues the retailers had to cut ties with OnePlus. The products will still be available on online platforms such as Amazon India and Flipkart, and customers will have easy access to them. However, the Indian offline market is extremely vast for OnePlus to risk losing, even if the company has already expanded to American and European markets.
2024-04-12 15:04:32