Mobile retailers in India have requested the central government to halt the operations of Chinese smartphone brands iQoo, Poco, and OnePlus.
According to the retailers, these companies engage in anti-competitive practices that are causing financial losses to the government.
The All India Mobile Retailers Association (AIMRA) has reached out to Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, demanding the cancellation of these companies’ licenses.
AIMRA Chairman’s Concerns
Kailash Lakhyani, the founder and chairman of AIMRA, highlighted the issue in an interview with Moneycontrol.
He expressed concerns over how these brands, despite the Competition Commission of India’s (CCI) report and follow-ups, continue to enter exclusive agreements with e-commerce giants like Amazon.
This exclusivity prevents traditional retail stores from accessing their products. Furthermore, the unauthorized movement of these products from online platforms to retail outlets disrupts cash flow and prevents the government from collecting additional GST.
Lakhyani stressed the need to protect local businesses and uphold fair trade practices.
AIMRA, which represents over 1.5 million mobile retailers, is seeking to address these issues to maintain a healthy business environment.
Impact on Local Retailers and Government Revenue
AIMRA raised further concerns regarding the growing trend of exclusive partnerships between Chinese companies and e-commerce platforms, which they say marginalizes local retailers.
According to the association, some Chinese brands use these online platforms to fuel grey market activities, further harming fair trade in India.
In a letter sent to MP Praveen Khandelwal on September 27, AIMRA urged him to take the matter to the Commerce and Finance ministries.
Lakhyani pointed out that the CCI report had already uncovered anti-competitive practices between online platforms and original equipment manufacturers (OEMs).
He emphasized that the licenses of companies that do not support local businesses and fair trade practices should be revoked.
iQoo’s E-commerce Focus
Regarding Vivo’s sub-brand iQoo, AIMRA noted that its products are predominantly available through online platforms like Amazon, Flipkart, and its own website.
AIMRA has repeatedly asked Vivo and iQoo to supply their stock to traditional retail outlets, but so far, there has been little action taken.
