OnePlus faces hurdle in India amid retailers’ complaints

Smartphone brand OnePlus is facing multiple grievances against its India operations, from profit margins to warranty and service claims, in another sign of troubles for Chinese brands in the world’s most populous country.

In a letter to OnePlus India on Wednesday, the South India Organised Retailers Association (ORA) said its members had run into an increasing number of unresolved issues related to selling the company’s products, moving them to suspend sales from May 1, according to reports by The Economic Times and other local media.

“Despite our persistent efforts to address these concerns with your company, little progress or resolution has been achieved,” the trade body said in its letter addressing Ranjeet Singh, sales director of OnePlus India, according to The Economic Times. “Promises made have not been fulfilled.

“The ORA painfully wishes to inform our collective decision to halt the retail of OnePlus products in our establishments from May 1, 2024.”

Some issues the body listed include alleged low profit margins on OnePlus products, making it challenging for retailers to sustain their businesses. Complex warranty and repair processes were another concern, as they frustrated both customers and retailers, according to the reports.

The ORA and OnePlus did not immediately respond to requests for comment yesterday.

India has been a proven growth market recently for OnePlus, a sub-brand of Dongguan-based Oppo, owing to its push to grow offline sales channels, according to consultancy Counterpoint Research.

The firm’s share of the Indian smartphone market grew by 33 per cent year on year in 2023, partially driven by its better product mix in the affordable premium segment – defined by Counterpoint as products priced between US$360 and US$540.

The looming loss of access to some offline channels in half of India could deal a significant blow to OnePlus.