The South Indian Organised Retailers Association (ORA) is gearing up to seek the intervention of the central government concerning the business practices of POCO, a sub-brand of Xiaomi, the news agency PTI reported.
The association alleges that the cell phone manufacturer is deliberately avoiding supplying phones to mainline channels.
In its statement, the ORA asserts that the business strategies employed by POCO clearly demonstrate the brand’s inclination towards minimizing expenses by primarily distributing its products through online and what they term as “illegitimate” channels, without prioritizing consumer experience.
Furthermore, the retailers’ body highlights POCO’s purported lack of contribution to employment generation in India, citing the brand’s operations with only three distributors and the absence of sales promoters, a departure from the practices of other major smartphone brands such as Samsung, VIVO, and OPPO.
According to ORA, these actions by POCO not only undermine legitimate sales channels but also lead to financial losses for the government exchequer. The association accuses POCO of engaging in unfair and unethical business practices, which it believes have significant implications for the industry and the economy as a whole.
The statement emphasizes ORA’s commitment to urging competent authorities to promptly address the matter and take necessary action against POCO, setting a precedent for ethical business conduct in the country. Despite repeated attempts by ORA to engage with the leadership team of POCO, the lack of response has prompted the retailers’ body to escalate the issue to relevant ministries and departments following the Lok Sabha elections. ORA aims to demand the cancellation of POCO’s trade license.
Moreover, ORA expresses its readiness to file a case with the Competition Commission of India (CCI) to ensure accountability and transparency in the smartphone market.
POCO officials could not be reached for comment at the time of writing.
