Chinese phone brand OnePlus accused of favouring exclusive stores, online channels over Indian retailers

Xiaomi, OnePlus and Oppo are among Chinese smartphone brands which have flooded shelves of offline stores and online listings alike. But with penalties for money laundering against Xiaomi and raids over suspected tax evasion have plagued these firms in India.

Now OnePlus is in the centre of a storm with retailers accusing it of price disparity in offline and online marketplaces.

OnePlus depriving retailers?

They have alleged that the Chinese smartphone maker has clogged the supply for mainline retail, and is routing most devices towards exclusive stores and online channels that it favours.

The national association of retailers also described the supply they get as an eyewash, as OnePlus ensured regular availability via online platforms which offered exclusive discounts and offers.

It also puts out full page advertisements, which mention exclusive stores to promote them, in a move called out as anti-competitive by other retailers.

Cutting consumers away from competitive rates?

The trouble started with OnePlus offering free wireless earbuds bundled with its flagship smartphone, but only through exclusive stores and preferred websites.

Retailers claim that this is a deliberate attempt to discourage people from buying products elsewhere at competitive prices.

Accusations of the Chinese brand forcing people towards exclusive channels have been made by an industry body that represents 1.5 lakh Indian retailers.