OnePlus has suffered a huge sales blow in its most important market

OnePlus has long been one of the most popular brands in India, owing to its aggressive pricing for phones and other products. Now, it looks like the company has suffered a major blow as a retail association has stated that OnePlus products will no longer be sold offline in large parts of India.

The South Indian Organized Retailers Association (ORA) sent a letter to OnePlus India, confirming that its retail chain members would discontinue sales of OnePlus products from May 1, Money Control reported.

OnePlus, a brand that has long been popular in India due to its aggressive pricing for phones and other products, has recently faced a significant setback in its offline sales. The South Indian Organized Retailers Association (ORA), representing over 4,300 stores across more than 20 retail chains in southern India, has decided to discontinue sales of OnePlus products from May 11. This move is a blow to OnePlus, as offline sales remain substantial in India despite the growing popularity of online platforms like Amazon India and Flipkart.

Reasons for the discontinuation:

Consistently low profit margins: The ORA cited this as a major factor in their decision.
Delays in processing warranty and service claims: Frequent delays led to dissatisfaction among retailers.
Bundling requirements: OnePlus required retail partners to bundle other goods or services with its products, which the association found problematic.
The All India Mobile Retailer Association (AIMRA) has also criticized OnePlus for its business practices, raising concerns about the brand’s nationwide sales1. While online channels have played a significant role, offline retail remains crucial for the “touch and feel” aspect, especially in a market that OnePlus previously referred to as its “most important market” in 20222.

OnePlus now faces the challenge of addressing these issues and maintaining its position in the Indian market. As the retail landscape evolves, finding a balance between online and offline sales strategies will be crucial for sustained success.