Indian retailers accuse smartphone brand POCO of monopolistic and anti-competitive behavior.
All India Mobile Retailers Association (AIMRA) has raised concerns about Xiaomi-owned smartphone brand POCO India’s business practices favoring e-commerce platforms and distribution of products through illegitimate channels, thus evading taxes.
In a letter addressed to Himanshu Tandon, Country Head, POCO India, the retailers association said:
“With continuous feedback and hue and cry from our retailers It has come to our attention that POCO's strategy appears to to favor exclusive online sales, a move that reeks of monopolistic and anti-competitive behavior.”
AIMRA has escalated this issue along with its fellow associations ORA and CAIT to the Finance, Commerce Ministry, and CCI to investigate POCO's operations.
The letter stated that POCO favors exclusive online sales, and has established collusion with e-commerce platforms to distribute products through unauthorized channels, bypassing legitimate distributors and evading taxes.
"We work with e-commerce platforms to expand our reach and ensure a seamless shopping experience. With over 80k active retail partners nationwide with Jio Mart Digital, POCO India prioritizes ethical business practices and strictly adheres to legal regulations. We value the feedback of the mobile association and to address their concerns fairly,"
POCO India's Country Head said.
AIMRA along with its letter attached screenshots of POCO’s exclusive launches on e-commerce platform Flipkart and of aggregators in retail selling preactivated handsets.
The supply of products to retailers through illegitimate channels encompasses situations where both aggregators and students buy in bulk using credit cards and distribute to retailers without proper documentation or legitimate invoices.
“Before resorting to further measures involving regulatory authorities, we invite you to engage in discussions with us to find a mutually beneficial solution. This presents an opportunity for POCO to enhance its reputation and expand its global reach,”
AIMRA said concluding the letter.
As per IDC report, POCO holds about 5.7 per cent share and the 7th spot in the Indian smartphone market as of Q3 FY2023. AIMRA highlighted that POCO is the only brand working exclusively online to enjoy this market share.
A few days ago, AIMRA had also accused Apple of favoring big retailers and discriminating against smaller sellers in India. Apple offers significantly higher cashback (up to $119) on iPhone 15 Pro models at its own stores and larger retailers compared to $35 allowed for smaller channels.
Source: ETRetail
