Mobile phone retailers threatens brands of boycott unless online discouting is stopped

Mobile phone retailers have reached out to leading manufacturers of cell phones that brands need to control deep discounts online as they work closely with the online channel and as they already control the market operating price for offline stores.

All Indian Mobile Retailers Association (AIMRA) has warned brands such as Xiaomi, Samsung and OnePlus that, unless online discounts are regulated, retailers can deduct the difference and sell at online prices and may even consider boycotting the brand together.

"We feel it's time for brands to take our issues seriously, other retailers won't be afraid to boycott the brands. We're not in favor of intimidation, but if the current scenario demands it, we won't withdraw," AIMRA president Arvinder Khurana said in his letter.

Also last month, AIMRA shot a letter to the brands warning them that if online discounting is not controlled and the balance is recovered from distributors, they will sell at online prices, and may even boycott brands.

Oppo and Vivo subsequently shot a trade advisory assuring retailers to launch similar products simultaneously in online and offline stores and at the same price. Realme also assured the same. AIMRA executives said that Xiaomi, Samsung and OnePlus have yet to communicate any decision on this matter.

Khurana said thousands of mobile stores have shut down in the last year. The new e-commerce policy forbids exclusivity, but the companies have worked around it by continuing to carry out exclusive versions. They advise the government to plug these loopholes, avoid predatory pricing online and set up a regulatory body to ensure that the policy is collected.

As per US-based international data corporation market tracker, online accounts for more than 45 percent of total smartphone sales in India. Smartphone sales in India during the July-September period were driven by e-commerce with offline sales falling by 2.6 percent year-on-year.

Since Diwali, AIMRA has been protesting against e-commerce discounts along with the trader's body Confederation of All India Traders. These two organizations have made multiple representations to the government, with trade minister Piyush Goyal also warning against stern action against e-commerce marketplaces if e-commerce policy was violated.