New Delhi: The All India Mobile Retailers Association (AIMRA) has called for a ban on Chinese smartphone brands such as iQoo, OnePlus, and Poco, accusing them of unfair business practices that hurt local retailers and harm the Indian economy. AIMRA has urged Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman to step in and cancel the licenses of these companies.
AIMRA, representing over 1.5 million mobile retailers in India, claims that these brands have formed exclusive partnerships with e-commerce platforms like Amazon, cutting out traditional retail channels. This, they say, puts local retailers at a disadvantage and denies the government valuable tax revenue from offline sales.
“Despite repeated reports and follow-ups with the Competition Commission of India (CCI), these companies continue to operate through exclusive agreements with Amazon, refusing to make their products available through retail stores,” said Kailash Lakhyani, Founder and Chairman of AIMRA.
The association also expressed concern over the rise of the grey market, where products meant for online sale end up being sold offline, disrupting the market and undermining fair trade practices.
Impact on Local Businesses and Government Revenue:
Lakhyani pointed out that these practices have a damaging effect on local businesses and the Indian economy:
iQoo as a Case Example:
Vivo’s sub-brand iQoo was highlighted as a key example of these issues. AIMRA noted that iQoo primarily sells its phones online via platforms like Amazon and Flipkart, despite repeated requests from retailers to make the devices available in stores.
“IQOO, a sub-brand of Vivo, is already under investigation by the Enforcement Directorate for money laundering. Additionally, Vivo has been named in recent findings by the CCI. Despite our continuous efforts, we’ve seen no progress in getting these products to retail channels,” Lakhyani added.
A Call for Action:
AIMRA has urged the government to take strong action against these companies to protect local retailers and ensure fair trading in India. “We request your intervention and ask that this matter be brought to the attention of Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman. It’s vital that we safeguard local businesses and maintain fair trade practices in our country,” Lakhyani stated in a letter to Member of Parliament Praveen Khandelwal.
